Compagnie de Saint-Gobain (LON:COD) reported what management described as a “very strong performance” in 2025, closing out its Grow & Impact plan with results the company said met all financial targets set at its 2021 Capital Markets Day. Chief Executive Officer Benoit Bazin and Chief Financial Officer Maud Thuaudet said execution remained solid despite “contrasted markets” across regions, with improving conditions in Europe in the second half and strong growth in Asia and emerging markets.
2025 financial performance and shareholder returns
Saint-Gobain said 2025 sales increased 2.1% in local currencies and were “virtually stable” on a like-for-like basis. Volumes declined 1.3% for the year, while prices rose 0.8%. Currency translation was a headwind, with a -2.3% impact for the year that worsened to -3% in the second half, reflecting depreciation of most currencies against the euro. The company also cited a positive 2.6% scope impact from acquisitions and portfolio moves including Cemix, Fosroc, Bailey, and CSR.
On profitability, the company said operating income rose 3.8% in local currencies, and it maintained a stable operating margin despite FX pressure. EBITDA increased 3.4% in local currencies with a stable 15.5% EBITDA margin. Thuaudet noted FX reduced operating income by nearly 4%—a larger effect than on sales—because currency weakness was concentrated in higher-margin regions.
Regional results: Europe improves in H2, North America pressured, Asia-Pacific surges
Europe returned to growth in the second half, according to management. Full-year European sales were up 1.1% in local currencies and up 0.6% like-for-like. Northern Europe was “mixed and contrasted” by country: the UK continued to grow and outperformed, Germany remained down amid a “wait-and-see” stance ahead of expected stimulus spending, and the Nordics were mixed with some large infrastructure wins. Management highlighted the company’s position in Central and Eastern Europe, citing a network of 100 plants representing over 10% of group sales.
In Southern Europe, the Middle East, and Africa, Saint-Gobain said performance improved noticeably in the second half, with sales up 1.7% in H2. France stabilized in H2 and grew in Q4, supported by rising permits and housing starts; management said Saint-Gobain outperformed in both new construction and renovation. Spain and Italy continued to grow with market share gains in interior solutions. The Middle East and Africa delivered double-digit growth, supported by the Fosroc integration and major infrastructure projects in Saudi Arabia and Abu Dhabi.
The Americas were uneven. North America sales fell 4.2% for the year and 7.3% in H2, with Q4 down 8.2%. U.S. roofing volumes fell 17% in Q4 due to a lack of major weather events, and management said 2025 had “no hurricanes for the first time in 10 years.” New construction weakness pressured interior solutions, while construction chemicals accelerated with market share gains. Despite the backdrop, management said it maintained positive pricing and protected margins through production optimization, cost actions, and plant maintenance adjustments.
Latin America delivered growth of 13.5% in local currencies and 6.9% like-for-like, with slower growth in H2 on a tougher comparison base and easing prices tied to lower energy costs. Management described the Cemix integration as a “great success,” citing 15% growth in local currencies in construction chemicals and spillover benefits for broader solution sales in Central America. The Americas region posted a 17.2% operating margin for the year and held 16% in H2, in line with prior commentary.
Asia-Pacific posted 17% sales growth in local currencies and 2.4% like-for-like, with a record operating margin supported by volume growth and pricing management. India delivered double-digit growth and market share gains, aided by construction chemicals and the Fosroc integration. Southeast Asia grew on an expanded specified-solutions offering; Saint-Gobain said it delivered 20 data centers in Indonesia and Malaysia during the year. The integration of CSR was described as “going well.” China was down slightly for the year but improved in H2 with market share gains despite continued market weakness.
Portfolio rotation and construction chemicals expansion
Management emphasized continued portfolio optimization as a key lever. Bazin said the company rotated EUR 1.2 billion of sales in 2025 and reiterated a goal to rotate more than 20% of sales by 2030 through acquisitions and disposals. The company highlighted construction chemicals as a strategic priority, describing a EUR 6.5 billion platform across 76 countries and a plan to reach more than EUR 9 billion of sales by 2030 in the segment.
On recent deals, Bazin said the Fosroc and Cemix integrations were “going very well,” citing 11% organic sales growth in local currencies and a combined 20% EBITDA margin. Executives also referenced two small construction chemicals acquisitions announced earlier in the week as part of a bolt-on approach.
2026 outlook: weather headwinds early, margin target reaffirmed
For 2026, Saint-Gobain guided to an EBITDA margin of more than 15%, while warning that the first half would be affected by extreme weather conditions in Europe and North America. In Q&A, Bazin said France experienced unusually heavy rain and flooding, while the U.S. saw widespread snowstorms, describing a meaningful impact on activity. He said the company assumes weather normalizes in Q2, with improvement into H2.
Management quantified a “low to mid-single digit” negative impact on North American volumes in Q1, estimating roughly -3% to -5% due to weather. The company said it does not guide margins by half-year, but acknowledged that momentum could be more “two halves of the year,” with different seasonality given the early-year disruption.
Thuaudet said capex should remain around 4.5% of sales in 2026, consistent with 2025, and reiterated the free cash flow conversion target of above 50%. On FX, she said the company expects around a -3% sales impact in Q1 2026 and around -2% for H1 at current spot rates, while noting volatility.
Strategic priorities under “Lead & Grow”
Bazin outlined Saint-Gobain’s new strategic plan, “Lead & Grow,” which aims to deepen the group’s solutions offering and expand further into non-residential and infrastructure markets, while sharpening the business profile through continued portfolio rotation. He highlighted mega-trends including sustainable construction, urbanization in Asia and emerging markets, energy-efficiency renovation in Europe, and the need to adapt buildings and infrastructure to extreme weather in North America.
He also pointed to opportunities in segments such as hospitals, airports, and data centers. Management said it is working on an active pipeline of more than 600 data center projects across 26 countries. During the call, the company also described contractor and distributor partnerships in North America as a driver of relative outperformance, citing cross-selling across product lines and “top-to-top” engagement with major national distributors.
Looking ahead, Bazin said the company remains focused on outperformance, margins, cash generation, and portfolio rotation, while maintaining its target of a positive price-cost spread. He added that Saint-Gobain expects continued improvement in Europe beyond the early weather disruptions, citing green shoots in new build activity, including rising starts and permits in France.
About Compagnie de Saint-Gobain (LON:COD)
Compagnie de Saint-Gobain SA designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands.
