Sika's Margin Expands in the First Half of 2025

Despite a challenging economic environment, Sika maintained growth in local currency terms in the first half of 2025, with an EBITDA margin expansion year-on-year. However, the weakening US dollar (which depreciated by 10% against the Swiss franc in the second quarter) and ongoing uncertainty in global markets impacted performance.

CEO Thomas Hasler said: "In a challenging market environment, we once again outperformed industry trends and continued to gain market share. Our position in Projects & Infrastructure is particularly strong, encompassing forward-looking and high-growth areas. This includes the global expansion of building structures related to artificial intelligence and digital infrastructure. To date, Sika has built over 1,000 data centers using our technology and has a strong project pipeline, making it the partner of choice for technology leaders. Together with our customers around the world, we are shaping the digital infrastructure of the future."

In the first half of 2025, Sika's sales increased by 1.6% in local currency. Foreign exchange impact was -4.3%, primarily due to the weakening US dollar. As a result, Sika's sales in Swiss francs amounted to CHF 5.68 billion. Amidst an overall market contraction, Sika achieved positive organic growth of 0.6%.
The material margin remained high at 55.1% (previous year: 55.1%). The EBITDA margin increased to 18.9% (previous year: 18.7%), driven by stable input costs, further efficiency gains, and strong synergy effects. The MBCC synergy target was increased by CHF 20 million (new target for 2025: CHF 160 million to 180 million, new target for 2026: CHF 200 million to 220 million). Operating EBITDA (EBITDA) reached CHF 1,070.4 million in the first half of the year, slightly down compared to the previous year due to strong foreign exchange effects.

Sika's operating free cash flow was CHF 181.9 million (previous year: CHF 401.3 million), in line with the multi-year average but below the exceptionally high level of the previous year. The decline was due to increased net working capital, unfavorable currency trends, and increased investments in future growth. The majority of operating free cash flow was generated in the second half of the year and will be supported by the Group-wide net working capital plan.

Faced with market uncertainty stemming from ongoing trade conflicts, Sika will continue to maintain above-market growth and focus on improving margins. Sika expects sales (in local currencies) to increase slightly in fiscal 2025. The company continues to expect positive EBITDA growth, with an EBITDA margin between 19.5% and 19.8%.