By John Revill
ZURICH (Reuters) – Swiss construction chemicals maker Sika expects strong growth in the United States, its biggest market, this year as Donald Trump’s policies encourage companies to bring back manufacturing, it said after beating annual profit expectations on Friday.
Sika’s shares gained 2.4% after its 2024 results, although the company also forecast global sales in local currencies would increase by 3-6% this year, slower than 7.4% growth last year.
The company, whose products are used to waterproof and strengthen walls, ceilings and floors, sees the reshoring of manufacturing to the United States under President Trump accelerating, while tariffs flagged by Trump would only have a limited impact.
“Manufacturing in general is a high priority for the government to bring back, so I think it will actually accelerate,” CEO Thomas Hasler told Reuters in an interview.
“Infrastructure spending that started under the Biden administration will continue. I think gas and oil will become again a priority and maybe a little bit less wind and solar.”
Sika expects the U.S. to be one of its best performing markets this year, with local currency sales increasing toward the upper end of its mid single digit percentage range for the Americas overall, he said.
The United States generated 21% of Sika’s sales in 2024.
Hasler said Sika was insulated against any tariffs because it produced locally nearly 100% of the products it sells in the United States while is also sourced nearly all its ingredients locally, Hasler said.
“There may be an impact from tariffs for some, but for us, it’s rather limited,” Hasler said. “We are self-sufficient in the U.S., and therefore I would say we are rather relaxed.”
Labour could also become more expensive because of tariffs, although Sika was seeing this yet, the executive said.
Its current U.S. projects include working on the Gordie Howe International Bridge between Detroit and Windsor in Canada, and Sika said it also sees potential in data centres which are being built across the United States to support the growth of artificial intelligence.
Hasler was speaking after Sika reported an 11% rise in full-year earnings before interest, tax, depreciation and amortisation to 2.27 billion Swiss francs ($2.53 billion). That beat analysts’ forecasts for 2.25 billion francs in a Vara consensus.
Sika’s results give an insight into the health of the broader construction industry and Zuercher Kantonalbank described them as good despite challenging markets.
Net profit in 2024 rose to 1.25 billion francs, beating forecasts for 1.21 billion francs, Sika said.
($1 = 0.8980 Swiss francs)
(Reporting by John Revill and Pretish M J; Editing by Subhranshu Sahu and Susan Fenton)
