Sika AG

Sika reported first-half revenue of CHF 5.59 billion, slightly below last year because of a 5.5% foreign-exchange headwind of more than CHF 300 million. Organic growth was 2.9% in the first half, with 1.1% from acquisitions, for 4% local-currency growth; excluding China construction, organic growth was 4.4%. Material margin expanded to 55.7%, up 60 bps year over year. EBITDA was CHF 1.063 billion, up 10 bps on margin, net profit was CHF 552 million, and EPS was CHF 3.43 versus CHF 3.45 last year. Operating free cash flow was CHF 139.6 million in H1, and management said this should still exceed 10% of full-year net sales because cash generation is seasonally weighted to the second half. For the full year, Sika now expects local-currency sales growth of 3% to 6% and EBITDA margin of 19% to 19.5%; it also expects about 3% to 4% negative FX impact for the full year and reiterated the CHF 80 million Fast Forward savings target for 2026.

Thomas Hasler framed the half as proof of Sika’s differentiation and customer trust, saying the company is gaining share across regions even in muted markets. He highlighted strong momentum in EMEA, a rebound in the Americas, and improvement expected in Asia Pacific as China comparisons ease. His tone was confident but cautious, emphasizing that the full-year outlook reflects outperformance rather than a market recovery.

Adrian Widmer focused on execution across the P&L: 2.9% organic growth in H1, CHF 5.59 billion in sales, a 55.7% material margin, CHF 1.063 billion of EBITDA, CHF 552 million of net profit, and CHF 3.43 EPS. He said personnel costs fell 3% and headcount was down by more than 1,000 excluding M&A, while other operating expenses rose 2.7% largely due to transportation and supply chain costs linked to the Middle East. He reiterated that Fast Forward is at about an 80% run rate, synergies are ahead at CHF 195 million trailing 12 months, and operating free cash flow should be in line with the strategic target of more than 10% of net sales.

Analysts pressed on whether the strong second-quarter growth could sustain into H2, how much growth came from pricing versus volume, and whether higher transport costs could reverse if oil falls. Management said Q3 looks solid, but Q4 visibility is limited and there are uncertainties from the Middle East and the U.S. midterms; it also said H1 growth came from both price and volume, roughly 1.5% price and 1% to 1.5% volume. On China, management said the market remains weak but internal restructuring is working, with lower-value products removed and margins improving in the higher-value mix. On the Americas and APAC, they cited strong North American project activity, including data centers, and continued rollout of retail/distribution expansion in Southeast Asia and India.