The Swiss building materials group points to continued M&A activity, a circular economy product focus and AI as the drivers of growth, as net sales increase by 3.9% in Q1.

Holcim sign (Image: Holcim)

In its Q1 financial report just out, Holcim announced net sales of CHF 3,520 million which represents 3.9% organic growth compared to the same period last year, with momentum accelerating in March.

Recurring EBIT (Earnings Before Interest and Taxes) grew 8.3% organically to CHF 431 million, versus the prior-year period. Holcim acknowledged that recurring EBIT margin was impacted by scope effects in the first quarter.

Confirming that the company is on track to reach its forecast for 2026, CEO Miljan Gutovic stated, “Holcim delivered robust organic growth in net sales driven by its leading positions in highly attractive markets.

“Strong organic growth in recurring EBIT came from strict cost discipline, operational excellence and increased customer demand for our premium brands and sustainable offering.”

He highlighted that the share of sales from ECOPact low-carbon ready-mix concrete and ECOPlanet low-carbon cement products has reached “new highs.”

ECOPact concrete increased to 31% of ready-mix net sales compared to 29% in the same period last year, while net sales of ECOPlanet accounted for 39% of cement net sales versus 35% in Q1 2025.

He also noted that scaling up the ECOCycle technology platform increased the volume of recycled construction and demolition materials by 24% compared to 2025’s results.

The company closed five transactions in Q1, including two in Latin America. In March, it completed the acquisition of a majority stake in Cementos Pacasmayo in Peru and signed an agreement to acquire building materials and solutions operations in Colombia.

Holcim also acquired Uranus Pluton SRL in Romania, Jacobs NV in Belgium and the ready-mix concrete business of Stevenson Group in New Zealand, while closing the divestment of its operations in Lebanon and activities in Cyprus.

Meanwhile, the implementation of Artificial Intelligence (AI) is seen by Holcim as “a strategic accelerator of incremental value” expected to improve performance and drive customer-centric services.

The company is targeting benefits of CHF 200 million in recurring EBIT from AI by 2028, split between cost avoidance and savings.

It plans to invest CHF 20 million each year into production, logistics, commercial and administration and have deployed 38 AI initiatives.

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