Holcim Sees Rising Profit, Reveals Financials of US Spinoff

Holcim, the Swiss building materials giant, has reported strong financial results for the full year 2024, with record net sales and earnings. The company also revealed the financials of its planned US spinoff, Amrize, which is expected to list on the New York Stock Exchange in the first half of 2025.

Holcim's full-year net sales rose by 1.3% in local currency to CHF 26.4 billion, while recurring earnings before interest and taxes (EBIT) increased by 10.8% in local currency to CHF 5.05 billion. The company's recurring EBIT margin expanded by 150 basis points to 19.1%. Holcim's CEO, Miljan Gutovic, attributed the strong performance to the company's differentiated value strategy and its focus on sustainable building solutions.

Amrize, the North American business that Holcim plans to spin off, generated $11.7 billion in revenue and an adjusted operating earnings margin of 27% in 2023. The spinoff is expected to have an estimated EBITDA margin of more than 27% for 2025 and aims to achieve net sales of more than USD 20 billion and EBIT of more than USD 5 billion by 2030, with industry-leading margins.

Holcim's planned spinoff of Amrize is expected to create a leading pure-play building solutions company in North America, with a distinct investment profile and capital allocation priorities. The spinoff is subject to shareholder approval at Holcim's Annual General Meeting on May 14, 2025, and is expected to occur by the end of the first half of 2025.

Holcim's strong financial performance and the promising outlook for Amrize have been well-received by investors. The company's shares have climbed more than 40% since it announced the spinoff plan a year ago. Holcim's focus on sustainable building solutions, such as its ECOPact and ECOPlanet brands, has also contributed to its competitive advantage in the market.

In conclusion, Holcim's rising profit and the revealed financials of its US spinoff, Amrize, demonstrate the company's strong financial performance and its commitment to sustainable building solutions. The planned spinoff is expected to create a leading pure-play building solutions company in North America and unlock value for shareholders. Holcim's focus on sustainability and innovation has contributed to its competitive advantage in the market and has driven its financial success.