The Swiss building materials giant posted record recurring EBIT (earnings before interest & taxes) of CHF 1,647 million (€1,760mn) in the third quarter, with a margin of 23.5% (+170 bps). Q3 2024 net sales stood at CHF 7,120 million (€7,609mn), up 0.5% in local currency.
The company's nine-month net sales of CHF 19,933 million (€21,303mn) were up +1.2% in local currency. The recurring EBIT for the period was CHF 3,884 million (€4,151mn), up 11.1% in local currency.
Holcim's mergers and acquisitions execution continued in the third quarter with six acquisitions. The quarter also saw the accelerated expansion of ECOCycle with a 23% increase in recycled construction demolition materials sales. Holcim is on track to achieve full-year 2024 guidance.
Miljan Gutovic, Holcim's CEO, said: "I thank all members of the Holcim family for delivering record profitability in Q3. Across all our markets, our teams advanced our sustainable building solutions from ECOPact and ECOPlanet to Elevate, meeting our customers' most ambitious needs.
"Our Q3 results confirm Holcim's strong earnings profile, with broad-based growth drivers delivering record recurring EBIT and a record margin. Our disciplined M&A execution has continued with six value-accretive acquisitions to expand Solutions & Products, strengthen our footprint in Europe and grow in attractive Latin American markets.
"With our track record of creating superior value across all market conditions and economic cycles, our resilient business model positions us to deliver another year of record results, executing on our strategic priorities."
Holcim's six value-accretive acquisitions during the quarter took the total to 17 for the year to date.
In the US, Holcim signed an agreement to acquire OX Engineered Products, a leading US provider of advanced insulation systems that complements its range of building envelope solutions. The acquisition continues the expansion of Holcim's Solutions & Products business into the most attractive construction segments, from roofing and insulation to repair and refurbishment. The synergistic transaction and EPS accretive from year one, is subject to customary conditions and regulatory clearance in the US and is expected to close in the fourth quarter of this year.
Holcim closed three acquisitions in Latin America to enter the Peruvian market and strengthen its market position in Guatemala. These transactions provide a platform for further expansion in the high-growth region. Holcim grew its footprint in Europe by acquiring a ready-mix concrete business in Serbia and an aggregates business in France.
Customer demand for Holcim's sustainable building solutions increased in the first nine months. Net sales of Holcim's ECOPact and ECOPlanet accounted for 29% and 25% of their respective segments, respectively, up from 19% in each case in the prior year period. Holcim accelerated its expansion of its proprietary technology ECOCycle, with a 23% increase in the volume of recycled construction demolition materials in the first nine months compared to the prior-year period.
Holcim was awarded a new European Union Innovation Fund grant to develop carbon capture and storage technology in Martres-Tolosane, France. This brings Holcim's total number of EU Innovation Fund grants for carbon capture, utilisation, and storage projects to seven. Holcim has invested in innovative startups to broaden its range of clean construction technologies, from Sublime Systems, with its proprietary electrochemical process, to advanced mineralisation startup Paebbl, all the way to 14Trees for 3D printing.
