ZURICH, April 24 (Reuters) - Holcim reported on Friday better than expected first quarter results, with the building materials maker confirming its full year outlook despite concerns about the slowing
Holcim maintains targets despite Middle East conflict
Holcim's Financial Performance and Outlook Amid Regional Tensions
By John Revill and Cian Muenster
Full-Year Targets and Middle East Exposure
ZURICH, April 24 (Reuters) - Holcim said on Friday it is sticking with full‑year targets as the Swiss cement company does not expect a major impact on its business from the Iran war.
Holcim still expects to increase its annual sales by 3-5%, excluding currency effects and acquisitions, and to improve its recurring operating profit by 8% to 10%.
CEO's Statement on Middle East Operations
CEO Miljan Gutovic said that regarding the Middle East conflict: "We do have operations in the Middle East, we have operations in UAE, Qatar, and Oman."
"Relatively small operations, they represent 1.5% of the total net sales. So in the grand scheme, it does not move the needle."
Energy Costs and Financial Coverage
CFO Steffen Kindler said: "For the full year of 2026, we are roughly 80% covered on our energy costs through hedges and long-term contracts."
Quarterly Results and Market Factors
The company reported a 4.8% fall in sales to 3.52 billion Swiss francs ($4.47 billion) in the three months to the end of March, beating analyst forecasts for 3.42 billion francs.
Recurring operating profit (EBIT) fell 11.1% to 431 million francs, ahead of analyst forecasts for 407 million francs in a company-compiled consensus.
Impact of Market Exits and Currency Fluctuations
The figures were impacted by Holcim’s exit from Nigeria and other markets, wet weather in Europe, and a translation effect from the strong Swiss franc.
Portfolio Reshaping and Acquisitions
Also during the quarter, the company reshaped its portfolio through five transactions, including the acquisition of a majority stake in Peru's Cementos Pacasmayo and an agreement to acquire building materials operations in Colombia.
Guidance and Industry Sentiment
Confirmation of Guidance
"With our resilient and proven business model across all economic cycles and market conditions, we confirm our full-year 2026 guidance," said Gutovic, who described the results as robust.
"We are seeing good momentum in Europe, especially on the infrastructure sector, residential, we are seeing some positive signs," he said.
Global Construction Industry Outlook
Forecasts and Economic Sentiment
Global construction industry sentiment has softened since the beginning of the year, with the Royal Institution of Chartered Surveyors halving its construction growth forecast for 2026 to around 1–2%.
The Institution's chief economist Simon Rubinsohn said global confidence in residential and non‑residential construction had turned more negative than at the end of 2025.
($1 = 0.7867 Swiss francs)
(Reporting by John Revill and Cian Muenster, Editing by Friederike Heine, Rashmi Aich and Jane Merriman)
