Vicat S.A.

Group sales were EUR 2.036 billion, up 10.8% like-for-like and 8% reported, with FX still a headwind. EBITDA reached EUR 367 million, up 13.6% like-for-like, and the margin improved to 18%; net income group share was EUR 117 million, up 14.7% reported, and diluted EPS was EUR 2.6, up 14.5%. Net CapEx was EUR 113 million, free cash flow was negative EUR 36 million in H1, net debt was EUR 1.3 billion, and leverage was 1.65x. For 2026, Vicat raised full-year guidance to like-for-like growth of 7%-9% in both sales and EBITDA, while keeping net industrial CapEx around EUR 290 million. Management also said H2 will face tougher comparisons in Brazil, Egypt, Turkey and Senegal, plus higher energy costs, and that the guidance does not assume a recovery in France.

Hugues Chomel’s tone was confident and disciplined, stressing that the group converted top-line momentum into profit growth despite a complex environment and persistent currency pressure. He highlighted the strategic importance of emerging markets, the recovery in the U.S., and stabilization in Europe, while also pointing to structural growth drivers such as Kiln 6 in Senegal, climate initiatives, and AI investments. He framed the upgraded guidance as a reflection of both H1 execution and confidence in Vicat’s operating model.

As CFO, Chomel emphasized the drivers of profitability: volume contributed EUR 33 million, pricing contributed EUR 140 million, and the group absorbed EUR 134 million of higher costs, mainly energy and maintenance. He said energy cost excluding transport rose 11.6% in H1, transport costs were up 27% due to oil, and the P&L impact should become more visible in H2; he also noted hedging helps but does not fully offset prolonged inflation. On cash and capital allocation, net CapEx was EUR 113 million, free cash flow was negative EUR 36 million in H1 because of seasonality and working capital, net debt fell to EUR 1.3 billion, cash was EUR 491 million, undrawn lines were EUR 578 million, and the average interest rate on gross debt was 3.78% after hedging. He reiterated the net industrial CapEx target of around EUR 290 million and said dividend should generally follow results, while payout is now at a more normalized level.

Analysts focused on how H2 guidance fits with strong H1 results, what Senegal could contribute in H2, and whether free cash flow will improve versus 2025. Management said H2 comparisons will be tougher in Brazil, Egypt, Turkey and Senegal, energy costs will worsen, and there is no assumption of a French volume recovery, though that would be upside if it happens. On the U.S., management confirmed $5 price increases in California and the Southeast effective in July or August, and said the industry needs price increases given a negative price-cost differential. On France, management said permits and starts have improved but have not yet translated into cement demand, and it did not announce additional H2 price increases in France or Switzerland.