By Olivier Cherfan
(Reuters) – French construction materials group Saint-Gobain reported full-year operating income broadly in line with analyst expectations on Thursday against a backdrop of a difficult economic environment in Europe.
The company, which designs, manufactures and distributes materials for the building and industrial market, said its full-year operating income was 5.30 billion euros, while analysts in a company-compiled consensus expected 5.25 billion euros.
Saint-Gobain said it was expecting a 2025 operating margin above 11%, slightly above the 9-11% it was predicting in its 2021-2025 strategic plan.
WHY IT’S IMPORTANT
Investors are closely watching the sector for signs of recovery after a tough year of rising raw material costs, elevated interest rates, geopolitical tension and inflation.
The group will share its new outlook during an investor day on October 6.
KEY QUOTES
“I am confident that 2025 will be another successful year… thanks to a good dynamic in most of our regions, a gradual recovery in Western Europe, and the integration of our recent acquisitions,” Chief Executive Benoit Bazin said in a statement.
CONTEXT
Saint Gobain’s main competitor, French infrastructure group Vinci, reported full-year revenue slightly above LSEG IBES estimates on February 6.
Swiss construction chemicals maker Sika anticipates strong U.S. growth this year as President Donald Trump’s policies spur manufacturing reshoring, the company said after beating annual profit expectations on Friday.
BY THE NUMBERS
Saint-Gobain reported full-year sales of 46.6 billion euros, in line with expectations, buoyed by acquisitions and improving organic growth, but offset by negative currency effects.
Sales in Southern Europe, the Middle East & Africa fell 7.3% in 2024, the company said, noting that while most countries had likely bottomed out, France outperformed due to strong renovation demand and innovative solutions. Asia-Pacific like-for-like sales rose 0.6%, with a record 12.6% operating margin driven by volume, pricing and cost management.
(Reporting by Olivier Cherfan; Editing by Kirsten Donovan)
