Holcim announced net sales of CHF$5,544 million in the first quarter, down 0.8% from CHF$5,586 in the first quarter of 2024.
CEO Miljan Gutovic said, “I thank all my Holcim colleagues for their dedication and contributions to our good start to the year. Holcim achieved stable net sales in local currency year-over-year despite unfavorable 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.
“I am pleased to confirm the spin-off of Amrize is progressing well towards its expected listing in June. With our proven resilient business model, we confirm our full-year 2025 guidance. We are well-positioned to navigate the current economic uncertainty with our local-for-local business.”
North America had a good start to the year, despite being affected by unfavorable 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 modernization and the onshoring of manufacturing.
As previously announced, Amrize filed its draft Form 10 registration statement with the U.S. Securities and Exchange Commission (SEC) on Feb. 28, 2025. On March 25, 2025, Amrize hosted its first investor day in New York, and presented its business, growth strategy, capital allocation priorities and mid-term financial targets. Most recently, Amrize successfully completed a US$3.4 billion bond offering, which received high investor demand.
Building on its proven track record of profitable growth and financial strength, Amrize’s investment case is led by five strategic drivers: a 100% focus on the North American market, its unparalleled footprint and resources, a successful track record of value creation, unlocking the next phase of its growth, and driving shareholder value, the company stated.
On May 14, 2025, shareholders will vote on the special distribution, by way of a dividend-in-kind, of one Amrize share for every Holcim share. Subject to shareholders’ approval and the conditions precedent being fulfilled or waived, Holcim will effect the spin-off of Amrize. The listings of Amrize on the NYSE and SIX Swiss Exchange are expected to occur in June 2025.
Latin America delivered further profitable growth in the first quarter. Broad-based improvement in net sales drove an 8% rise in local currency. The segment continued to achieve an industry-leading margin in the first quarter, with a recurring EBIT margin of 35.0%. 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 realized 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%, 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.
Net sales increased 2% in local currency in Solutions & Products, driven by roofing in North America. The roofing business also expanded its margin. A specialty building solutions provider was acquired in Peru. The outlook is favorable in both the new construction and repair & refurbishment markets.
In the first quarter, net sales of Holcim’s low-carbon ECOPact concrete accounted for 32% of ready-mix sales, and net sales of low-carbon ECOPlanet cement represented 29% of cement sales, up significantly from 26% 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% versus the same period a year ago.
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, which will be commissioned by the first half of 2026. In North America, Holcim began the construction of a new Malarkey advanced roofing plant in Indiana to expand into the Midwest and Eastern U.S. markets, with completion expected by the second half of 2026.
During the quarter, Holcim was recognized as a global climate leader by CDP, ranking on the “A list” for climate for the fourth time. With the publication of its fourth annual Climate Report, Holcim continues to give its shareholders a say on climate.