- Full-year net sales of CHF 26 407m Recurring EBIT of CHF 5049m, +10.8% in local currency, +6.1% in CHF
- Expansion of industry-leading recurring EBIT margin to 19.1%, +150bps
- Earnings per share of CHF 5.70, up 5.3%
- Free cash flow after leases of CHF 3,801 million, up 2.6%
- Proposed 11% increase in dividend to CHF 3.10
- +20% recycled construction demolition materials to 10.2 million t
- Planned listing of North American business on track to occur by end of H1 2025, strong 2025 outlook
Miljan Gutovic, CEO: “I thank all members of the Holcim family for delivering record performance in 2024. Executing on our strategic priorities, Holcim achieved record results across all key financial metrics, from recurring EBIT above CHF 5 billion for the first time, to free cash flow of CHF 3.8 billion.
“During 2024, we further expanded our industry-leading EBIT margin to 19.1% driven by our differentiated value strategy. Our advanced branded solutions meeting our customers’ most ambitious needs, from ECOPact and ECOPlanet to Elevate, grew to 36% of total net sales. Decarbonisation and circular construction continued to drive profitable growth, with a 20% rise in recycled construction demolition materials to above 10 million t. We continued our momentum in value-accretive M&A, closing 27 transactions to grow in the most attractive markets.
“Consistently delivering superior shareholder value, we completed a CHF 1 billion share buyback and the Board has proposed a double-digit dividend increase to a record CHF 3.10 per share.
“The next step in our growth and value creation is on track, with the planned listing of our North American business expected to occur by the end of H1 2025. With a strong outlook across all business segments, we are well positioned for 2025. I am confident we will deliver another year of profitable growth.”
Delivering record results
In the fourth quarter, recurring EBIT rose 9.9% in local currency compared to the prior-year period to reach a record CHF 1165 million. Fourth-quarter net sales of CHF 6473 million rose 1.6% in local currency versus the fourth quarter of 2023.
Full-year net sales of CHF 26407 million for 2024 were up 1.3% in local currency compared to the prior year. Recurring EBIT reached a record CHF 5049 million for 2024, up 10.8% in local currency compared to the prior year. Holcim’s performance more than offset strong foreign exchange effects, with full-year recurring EBIT up 6.1% in Swiss franc versus the prior-year period.
Free cash flow after leases for the full year rose 2.6% to reach a record CHF 3801 million, with a cash conversion ratio of 57%.
Further expansion of industry-leading margin
With its differentiated value strategy, Holcim further expanded its industry-leading recurring EBIT margin by 150 basis points to a record 19.1% in 2024. Holcim’s multi-billion advanced branded solutions, from ECOPact and ECOPlanet to Elevate, increased to 36% of total net sales in 2024, up from 30% in 2023. ECOPact reached 29% of ready-mix concrete net sales by the end of the year, with ECOPlanet at 26% of cement net sales – each up from 19% of their respective categories a year earlier.
Decarbonisation and circular construction drove profitable growth, with a 20% rise in recycled construction demolition materials to 10.2 million t, with Holcim achieving its 2025 target of 10 million tpy in advance.
Portfolio optimization through value-accretive M&A continued in 2024, with 27 transactions to focus on the most attractive markets. Holcim closed five additional bolt-ons in the fourth-quarter, with an acquisition in Bulgaria, Croatia and France, as well as two acquisitions in Switzerland. For the full year, Holcim continued to expand in Solutions & Products, acquiring OX Engineered Products, a U.S. leader in advanced insulation systems for commercial and residential applications. Growing across attractive markets, Holcim’s acquisitions included four in Latin America, and four in the fast-growing circular construction market in Europe.
Driving superior shareholder value
Since 2018, Holcim has made seven transformative acquisitions in Solutions & Products and 93 valueaccretive bolt-on acquisitions, while investing CHF 4 billion in growth CAPEX. During the same period, Holcim has completed CHF 3 billion in share buyback programmes and returned CHF 8 billion to shareholders via progressive dividends. This capital allocation for growth and shareholder returns is made possible by Holcim’s strong balance sheet with its investment grade credit ratings of BBB+ and Baa1.
In light of Holcim’s record 2024 financial performance and confidence in the future, the Board of Directors proposed a 11% increase in dividend to CHF 3.10 per registered share.
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