SIKA IS GENERATING GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE
Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
SIKA IS GENERATING GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE
Growth in local currencies of +1.9% (growth in CHF: +1.1%)
Q1 sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million)
Organic growth of 0.9%
Acquisition effect of 1.0%
Targeted investment in future growth
Acquisition of Elmich (Singapore), Cromar (UK), and HPS (USA)
Opening of new factories in Singapore, Xi'an (China), Quito (Ecuador), and Ust-Kamenogorsk (Kazakhstan)
Outlook for fiscal 2025:
Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts
Expected sales increase in local currencies of 3-6%
Over-proportional increase in EBITDA and EBITDA margin of between 19.5%-19.8%
Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth
In the first quarter of the 2025 financial year Sika has continued to grow, despite less predictable global trade and ongoing geopolitical tensions. In markets in which protectionist tariffs are hindering free trade, Sika's local supply chain and its systematic global production expansion over the past years are proving to be a strategic advantage. With over 400 factories worldwide, the company has a comprehensive production network in 102 countries and produces its state-of-the-art technologies locally. Sika is therefore not directly affected by tariffs and can reliably supply its customers even under challenging market conditions as well as continue to strengthen its leading position in the field of construction chemicals by gaining market share.
In the first quarter of 2025, Sika generated record sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million). This equates to an increase of 1.1% in Swiss francs. Sika once again succeeded in achieving organic growth in a declining overall market and grew by 0.9% in the first three months of the year.
Thomas Hasler, CEO: 'In a challenging market environment we were again able to assert ourselves and grow against the market trend. We have a strong position in particular in the project and infrastructure business. With a clear focus and a comprehensive product portfolio we are targeting further growth in both areas. In addition, our proven 'local for local' strategy is the basis for our strong resilience, especially in times of global uncertainty and increasing trade barriers. We produce our solutions and innovations locally in our respective markets, close to our customers. In the US in particular, we have implemented this decentralized model successfully and now produce close to 100% of our products locally for the US market. The same is true for Europe and Asia, where our local production network also gives us a strategic competitive advantage.'
INVESTMENT IN FURTHER GROWTH IN ALL REGIONS In the first quarter, Sika generated local currency growth in EMEA and Americas and gained market share in all regions. Investments were made in all regions in the acquisition of small and medium-sized enterprises and in the expansion of production facilities for future growth.
In the first three months of 2025, sales in the EMEA region (Europe, Middle East, Africa) increased by 0.7% in local currencies (previous year: 22.4%). Conditions remain very challenging in the European construction markets. Compared to the same period last year, the region also had one working day less. Overall, Sika achieved a significant increase in sales in the countries in the Middle East and Africa. With its strong sales organization, Sika Germany is very well positioned to benefit from the infrastructure package approved by the German government for which around EUR 500 billion will be invested in modernizing and expanding infrastructure over a period of 10 years.
The automotive and industrial sectors are still experiencing a downturn in the EMEA region. This is due to the falling production figures for new vehicles owing to persistently weak demand in Europe.
Sika has invested in future growth in Europe. In the first quarter it acquired Cromar Building Products, a well-known provider of roofing systems in the UK. Cromar supplies its customers mainly via the distribution channel. With the acquisition Sika is developing substantial cross-selling potential and is targeting expansion in the roofing sector in the UK.
Moreover, Sika has commissioned a new production facility in Ust-Kamenogorsk with production lines for mortar and concrete admixtures and a modern laboratory. The plant is Sika's fourth factory in Kazakhstan and is situated in an economically important industrial region in the eastern part of the country.
In local currency terms, the Americas region achieved a 4.9% increase in sales (previous year: 21.1%). After a good start to the current financial year, the last month of the quarter saw the market unsettled by mixed signals in terms of US trade policy. Consequently, growth for Sika has slowed in North America, whereas last year's growth momentum in Latin America has continued. One positive effect comes from state-supported infrastructure projects in the US and commercial construction projects that are being implemented as part of the drive to relocate production in the USA. Thanks to Sika's local presence – almost 100% of all products and solutions sold in the USA are produced in the country – and its strong leading position in the renovation market, Sika outperformed the market as a whole.
In the first quarter, Sika acquired HPS North America, Inc., a successful provider of materials for building finishing. The complete integration into Sika USA creates a strong platform for further expansion in the Building Finishing segment and facilitates considerable efficiency gains. Furthermore, investments were made in the expansion of the supply chain in Ecuador. By opening a new factory in Quito, Sika is reinforcing its presence and customer proximity in the country. The strategic investment enables Sika to leverage the full market potential of Ecuador for its mortar solutions in the field of interior walls, insulation, and tile adhesives.
In Asia/Pacific, sales in the first three months of the current financial year have remained stable (previous year: 14.1% growth). Sika's sequential growth in the region has thus improved. Southeast Asia and the Automotive & Industry business posted strong growth where Sika was able to further increase the share of its technologies in vehicles of local and international manufacturers. Japan and India, two of the largest countries in the region, also contributed to the growth. China, the region's biggest country, experienced a continued downturn in the first quarter.
Sika also invested in Asia/Pacific and acquired Elmich Pte Ltd, a Singapore-based company and a leading provider of green roofs and spaces for urban areas. With this move, Sika is expanding its regional offering of roofing systems and is also strengthening the specifications business in the region. In addition, Sika opened two state-of-the-art production facilities in Singapore and Xi'an, in the northwest of China. Whereas the new plant in Singapore will specialize in mortar production, the facility in Xi'an will produce tile adhesives, cementitious waterproofing, and flooring solutions.
OUTLOOK Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts. Especially in a protectionist market environment, Sika's long-standing investments in a 'local for local' strategy should pay off and drive resilient results.
For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company is anticipating an over-proportional increase in EBITDA and an EBITDA margin in the range of 19.5%-19.8%.
Sika is also confirming its 2028 strategic medium-term targets for sustainable, profitable growth.
NET SALES IN THE FIRST THREE MONTHS OF 2025
In CHF mn
1.1.2024 -31.3.2024
1.1.2025 -31.3.2025
Year-on-year change(+/- in %)
In CHF
In local currencies
Currency effect
Acquisition effect
Organic growth
By region
EMEA
1,210.7
1,204.1
-0.5
0.7
-1.2
0.3
0.4
Americas
903.2
934.7
3.5
4.9
-1.4
2.5
2.4
Asia/Pacific
534.1
539.5
1.0
0.0
1.0
0.4
-0.4
Net sales
2,648.0
2,678.3
1.1
1.9
-0.8
1.0
0.9
Products for construction industry
2,211.5
2,248.0
1.7
2.5
-0.8
1.2
1.3
Products for industrial manufacturing
436.5
430.3
-1.4
-1.0
-0.4
0.0
-1.0
FINANCIAL CALENDAR
Half-Year Report 2025
Tuesday, July 29, 2025
Sika Innovation Lab
Tuesday, October 7, 2025
Results first nine months 2025
Friday, October 24, 2025
Net sales 2025
Tuesday, January 13, 2026
Media conference/analyst presentation on the 2025 full-year results
Friday, February 20, 2026
58th Annual General Meeting
Tuesday, March 24, 2026
Sales first quarter 2026
Tuesday, April 14, 2026
SIKA CORPORATE PROFILESika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industry. Sika has subsidiaries in 102 countries around the world, produces in over 400 factories, and develops innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation industries toward greater environmental compatibility. Its 34,000 or so employees generated annual sales of CHF 11.76 billion in 2024.
CONTACTDominik SlappnigCorporate Communications &Investor Relations+41 58 436 68 21slappnig.dominik@ch.sika.com
The media release can be downloaded from the following link:Media Release
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