Holcim reported stable net sales of CHF5544m (US$6674m) in the 1Q25, compared to US$5586m in the 1Q24, down 0.8 per cent. In the 1Q25 net sales of Holcim’s low-carbon ECOPact concrete accounted for 32 per cent of ready-mix sales and net sales of low-carbon ECOPlanet cement represented 29 per cent of cement sales, up significantly from 26 per cent in each case in the prior-year period. Accelerating circular construction with its technology platform ECOCycle®, Holcim increased its recycling of construction demolition materials by 21 per cent versus the same period a year ago.
Miljan Gutovic, CEO of Holcim, said: “Holcim achieved stable net sales in local currency year-over-year despite unfavourable weather conditions in North America. Our high-value strategy continues to deliver, with over-proportional recurring EBIT growth and a sustained level of margin in the first quarter. Growing customer demand for our sustainable building solutions drove ECOPact and ECOPlanet’s share of sales in their respective categories to new highs.
“Our disciplined M&A execution continued with five value-accretive acquisitions. These transactions will strengthen our aggregates and ready-mix businesses in Europe and North America, and our specialty building solutions in Latin America.
Regional performance
North America had a good start to the year, despite being affected by unfavourable weather conditions. Trading improved in March and the acquisition of an aggregates business was closed in the quarter. Holcim has now secured more than 230 infrastructure projects to 2028. Market fundamentals in North America remain strong in the mid- and long-term, driven by infrastructure modernisation and the onshoring of manufacturing.
Latin America delivered further profitable growth in the first quarter. Broad-based improvement in net sales drove an eight per cent rise in local currency. The segment continued to achieve an industry-leading margin in the first quarter, with a recurring EBIT margin of 35 per cent. Public and private sectors will drive infrastructure and commercial investments across the region.
Europe continued to deliver strong over-proportional recurring EBIT growth, with continued recurring EBIT margin expansion, up 60 basis points compared to the prior year period. Holcim completed three value-accretive bolt-ons in the quarter, in Bulgaria, France and Serbia. Sustainable building solutions are expected to continue driving profitable growth.
Asia, Middle East and Africa realised double-digit recurring EBIT growth in local currency, led by north Africa. There was an outstanding expansion in the recurring EBIT margin by 250 basis points to 21.7 per cent, driven by good momentum in ECOPact sales. The good momentum is expected to continue with strong demand in north Africa, a positive outlook in Australia and price recovery in China.
Strengthening its local-for-local business model, Holcim began construction of a new site in Tilbury, UK, to serve the growing London market with circular and sustainable building solutions. The new facility is scheduled to be commissioned by the 1H26. In North America, Holcim began the construction of a new Malarkey advanced roofing plant in Indiana to expand into the Midwest and eastern US markets, with completion expected by the 2H26.
Holcim’s NextGen Growth 2030 strategy
Holcim announced NextGen Growth 2030, the strategy for its post spin-off structure, at an investor day in Zurich on 28 March 2025. With NextGen Growth 2030, Holcim will leverage its sustainability leadership to deliver profitable growth in Europe, Australia and north Africa, while accelerating growth in Latin America to benefit from strong market fundamentals and industrialisation trends.
The strategy outlines four strategic drivers to capture growth: focussed investment in attractive markets, sustainability driving profitable growth, expanding high-value building solutions, and performance culture and value creation. As the leading partner for sustainable construction, Holcim post spin-off will be best positioned to capitalise on the powerful megatrends shaping the construction industry to drive profitable growth and shareholder value, said the company.
