(Reuters) -Swiss construction materials maker Holcim reported better than expected first-quarter profit on Friday, in its last results before the spin-off of its North American business Amrize.
As a local-to-local business, Holcim was well-prepared to navigate tariff turmoil, CEO Miljan Gutovic told reporters in a media call on Friday, adding that projects in the U.S. remained on track despite bad weather at the beginning of the year.
“Look, there is obviously uncertainty, but so far, we have not seen any cancellation of projects,” he said. “The pipeline for us is very healthy.”
Holcim posted recurring operating profit of 515 million Swiss francs ($619 million) for the three months ended March 31, beating forecasts for 494 million francs in a company-compiled consensus.
Sales remained stable at 5.54 billion francs, beating forecasts for 5.49 billion francs.
“Our disciplined M&A execution continued with five value-accretive acquisitions,” Gutovic said in a statement.
“These transactions will strengthen our aggregates and ready-mix businesses in Europe and North America, and our specialty building solutions in Latin America.”
With Holcim confirming its targets, an acceleration of sales and recurring operating profit growth could be expected throughout fiscal year 2025, Vontobel analyst Mark Diethelm said in a note.
Holcim is planning to spin off 100% of Amrize to its shareholders, with the separation expected to be completed in June.
The spin-off is expected to be one of the largest deals in the global construction industry, with the company initially targeting a $30 billion valuation when it was announced in January 2024.
The transaction still requires approval from Holcim’s shareholders at the company’s AGM on May 14, with Amrize planning listings on the New York Stock Exchange and the SIX Swiss Exchange.
The company outlined its post-split strategy last month, in which it said it was targeting average annual growth in earnings before interest and taxes of 6% to 10% by 2030.
It will focus on Europe, Australia, North Africa, and Latin America, and expand its focus on building solutions, including foundations, flooring, walling and roofing.
Holcim, which in 2024 had net sales of 16.3 billion francs excluding North America, would have a total estimated capital deployment capacity of 18-22 billion francs from 2025 to 2030, the company said, with the cash earmarked for large acquisitions and share buybacks.
($1 = 0.8317 Swiss francs)
(Reporting by John Revill and Ariane Luthi; Editing by Kim Coghill, Varun H K and David Evans)
