Holcim Upgrades Guidance as Momentum Accelerates in H1 2026

CEO cites volume growth, sustainable offering, and ETS opportunity as key drivers.

HOLN.SW · Earnings Call · 2026-07-31

Strong H1 Momentum Drives Guidance Upgrade

Holcim’s first-half 2026 results show a clear acceleration, prompting management to lift full-year targets. CEO Miljan Gutovic opened the call by noting: “our momentum even accelerated in Q2” — Miljan Gutovic, Chief Executive Officer (CEO) · 2026-07-31, with organic net sales growth hitting 6.4% in the second quarter and recurring EBIT up 13.1%. CFO Steffen Kindler highlighted the durability of the margin performance: “we delivered double-digit organic growth of 11.5%” — Steffen Kindler, Chief Financial Officer (CFO) · 2026-07-31. This follows a period of relatively cautious guidance, and the company now expects net sales and EBIT growth at the high end of its NextGen Growth 2030 targets. The upgrade is driven by broad-based volume recovery, especially in Europe, where infrastructure projects and residential construction are turning a corner.

Acquisitions and Sustainable Offering Power Growth

The completion of Xella and Pacasmayo, both strategically significant, adds scale and margin potential. acquisition of Xella was completed in June, bringing over CHF 900 million in projected sales and expanding the building solutions footprint. Management emphasized the integration benefits and cross-selling opportunities. At the same time, the push for sustainable products continues: sustainable offering now represents a third of sales, and the premium brands ECOPact, ECOPlanet, and ECOCycle carry modest price premiums while lowering costs. This double-dipping effect is central to margin expansion. The company also outlined AI-driven initiatives expected to deliver CHF 200 million in benefits by 2028, spanning production, logistics, and commercial applications. AI-powered tools like M-Predict for maintenance and Q-Predict for quality optimization are already being scaled.

ETS Reform: From Risk to Opportunity

A notable shift in narrative is the treatment of the EU ETS reform. In prior calls, management expressed caution, noting “negligible investment so far” — Miljan Gutovic, Chief Executive Officer (CEO) · 2026-02-27 in carbon capture. But today, CEO Miljan Gutovic is framing the reform as a positive:

it is positive for Holcim, and it will open additional opportunity for us.
Miljan Gutovic, Chief Executive Officer (CEO) · 2026-07-31

The industrial decarbonization bank and flexibility around carbon capture timelines are seen as tailwinds. This contrasts with the earlier tone and reflects increased confidence in the company's strategy. The company expects to participate in carbon market opportunities and sees potential in CO2 utilization. This shift is a key differentiator versus peers who remain focused on the risks.

Pricing Discipline Remains Core

The recurring theme of Price over cost continues, with the 17th consecutive quarter of positive price/cost. Steffen Kindler noted that the second-quarter price/cost contribution was roughly EUR 90 million, split evenly across regions. This discipline, combined with strict cost management and operational excellence, underpins margin expansion even as energy costs fluctuate. The company's targeted approach to pricing, particularly in Latin America, is yielding results. As CEO Gutovic remarked earlier this year, “we do have a very healthy momentum” — Miljan Gutovic, Chief Executive Officer (CEO) · 2026-02-27 in pricing, a trend that has persisted. While the broader construction sector is cyclical, Holcim's focus on sustainable solutions and high-value building products differentiates it. The EU ETS may provide a competitive advantage as regulation tightens, allowing Holcim to monetize its decarbonization leadership. Combined with the recent Building Solutions expansion, the company is positioning for durable profitable growth.