Holcim Q3 Performance Report

Investing.com — Holcim (SIX:HOLN) shares climbed 2% Friday after the Swiss building materials supplier reported Q3 operating profit above analyst expectations, as improved profitability helped counteract a decline in sales.

Holcim, set to spin off its North American operations next year, posted a recurring operating profit of 1.67 billion Swiss francs ($1.93 billion) for the third quarter, slightly exceeding analyst estimates of 1.65 billion francs based on company consensus.

Higher profit margins rose to 23.5% from 21.8% the previous year, supporting this result.

Holcim’s increased focus on selling more higher-margin products, including low-carbon cement, roofing, and other building materials, helped offset a 3% decline in revenue to 7.12 billion francs, below expectations of 7.19 billion francs.

CEO Miljan Gutovic stated, “Our Q3 results confirm Holcim's strong earnings profile, with broad-based growth drivers delivering record recurring EBIT and a record margin.”

Holcim reaffirmed its full-year outlook, aiming for low single-digit growth in sales in local currencies and a higher growth rate in recurring operating profit.

Jefferies analysts commented that “these results feel like a tick in the box with limited impact to FY24 consensus or the underlying investment case.”

Citi analysts echoed this sentiment, noting that the Q3 print was broadly in line with expectations, leading to no meaningful changes in consensus earnings estimates based on these results.