Holcim, the world’s biggest building materials product group, saw record trading in 2024 and is “well-positioned” for a successful 2025.
The Swiss mega group’s full-year net sales of CHF 26.407 billion were up 1.3% in local currency. Recurring EBIT passed CHF 5bn for the first time (CHF 5.049bn +10.8% in local currency) and recorded record free cash flow at CHF 3.8bn.
Furthermore, recycled construction demolition materials sales increased by 20% to 10.2 million tons, beating a 10-million-ton target a year in advance. Holcim also reported that seven CCUS (carbon capture, utilisation, and storage) projects were being rolled out in 2024.
Holcim’s planned listing of Amrize, its new North American business, is on track to occur by the end of H1 2025.
Miljan Gutovic, Holcim’s CEO, said: “I thank all members of the Holcim family for delivering record performance in 2024. Executing our strategic priorities, Holcim achieved record results across all key financial metrics, from recurring EBIT above CHF 5 billion for the first time to free cash flow of CHF 3.8 billion.
“During 2024, we further expanded our industry-leading EBIT margin to 19.1%, driven by our differentiated value strategy. Our advanced branded solutions, meeting our customers’ most ambitious needs, from ECOPact and ECOPlanet to Elevate, grew to 36% of total net sales. Decarbonisation and circular construction continued to drive profitable growth, with a 20% rise in recycled construction demolition materials to above 10 million tons. We continued our momentum in value-accretive M&A, closing 27 transactions to grow in the most attractive markets.
“Consistently delivering superior shareholder value, we completed a CHF 1bn share buyback, and the Board has proposed a double-digit dividend increase to a record CHF 3.10 per share.
“The next step in our growth and value creation is on track, with the planned listing of our North American business expected to occur by the end of H1 2025. With a strong outlook across all business segments, we are well-positioned for 2025. I am confident we will deliver another year of profitable growth.”
Holcim’s 27 M&A (mergers and acquisitions) transactions in 2024 were said to be based on the “most attractive” markets. In the fourth quarter, Holcim closed five additional bolt-ons, with an acquisition in Bulgaria, Croatia, and France and two acquisitions in Switzerland. Holcim expanded in Solutions & Products, acquiring OX Engineered Products, a US leader in advanced insulation systems for commercial and residential applications. Growing across attractive markets, Holcim’s acquisitions included four in Latin America and four in the fast-growing circular construction market in Europe.
Based on its record full-year performance, Holcim has a strong outlook across all its business segments. The Group says that in North America, infrastructure modernisation and reshoring of manufacturing will drive growth in 2025. In Latin America, public and private sectors are expected to drive infrastructure and commercial investments. Strong demand for sustainable building solutions is expected to drive profitable growth in Europe. Focusing on Asia, the Middle East & Africa, Holcim expects strong domestic demand in North Africa, a positive outlook in Australia, and price recovery in China. The Group also has a favourable outlook for the new construction and repair and refurbishment markets.
