Following a strong spring season that allowed the building materials group to offset previous winter setbacks, business activity likely gained significant momentum during the summer months. Financial analysts anticipate that management will confirm the upwardly revised guidance for the full year when the company publishes its financial results for the third quarter on Friday, October 23. Market estimates compiled by AWP point to a net turnover of 4.57 billion dollars, with the EBIT margin projected at 20.8 percent and operating profit reaching 949 million dollars based on consensus figures from ten contributors.
Market watchers project a notable acceleration in operations, forecasting double-digit expansion rates for both revenue and recurring operating profit. Organic growth is estimated at approximately 5 percent, while consolidation effects are expected to add roughly 7 percent. Furthermore, foreign exchange tailwinds have materialized as the Swiss franc depreciated against both the euro and the dollar during the period, reversing its previous role as a currency headwind.
Summer pricing adjustments likely surpassed rising input costs. Performance across the core European territory presented a mixed picture, marked by ongoing headwinds in major markets like France and the United Kingdom alongside a visible recovery in Germany, complemented by steady growth in Greece and Eastern Europe. CEO Miljan Gutovic noted in late July that the financial impact of summer heatwaves was negligible and that wildfires had not yet harmed operations in France and Spain.
Latin American operations expanded sharply, and North African markets drove growth across the wider Asia, Middle East, and Africa region, offsetting continued contraction in China. Corporate portfolio adjustments contributed significantly to top-line expansion. Acquisitions including Cementos Pacasmayo in Peru and Xella in Germany offset divestments in Nigeria, Jordan, and Iraq, although the integration phase of Pacasmayo initially exerts some margin pressure due to lower profitability relative to the divested Nigerian operations. Management anticipates approximately 40 million dollars in synergies by the third year from this transaction.
Holcim is also expanding its Colombian footprint by acquiring building solutions operations from Cemex, units projected to generate about 360 million dollars in net sales for 2026 and immediate earnings-per-share accretion in year one. In Germany, the company agreed to purchase Fermacell for 840 million euros. The wall, floor, and fire protection board manufacturer forecasts 2026 revenue near 430 million euros and an estimated EBITDA of roughly 90 million euros for next year, alongside expected annual synergies of about 22 million euros by the third year.
Following robust results in the first half, management lifted full-year projections earlier than usual. The group now targets full-year organic net sales growth of approximately 5 percent, up from a prior bracket of 3 to 5 percent, and operating profit expansion of around 10 percent, compared to an earlier range of 8 to 10 percent. The corresponding margin is expected to expand further, supported by anticipated order inflows from a large German infrastructure program in the second half. Management maintains its target for a free cash flow of roughly 2 billion francs and aims for over 20 percent growth in recycled demolition and construction materials.
The equity security experienced pressure earlier in the year following geopolitical conflict in Iran and proposed reforms to the European Union emissions trading system, followed by a broader downturn in cyclical building materials shares during September. Trading recently near 64.62 francs, the title remains close to its early March annual low of 60 francs, reflecting a year-to-date decline of 17 percent.
