Latest news with #SikaAG
Yahoo
30-07-2025
- Business
- Yahoo
Sika AG (SKFOF) (H1 2025) Earnings Call Highlights: Resilience Amid Market Challenges and ...
Local Currency Sales Growth: 1.6% in the first half of 2025. Organic Growth: 0.6% in a declining market. Material Margin: Maintained at 55.1% of net sales. EBITDA Margin: Increased by 20% to 18.9%. Net Profit Ratio: 9.8% of sales. Net Profit: CHF 554.4 million, impacted by currency translation effects. Operating Free Cash Flow: CHF 181.9 million, lower than the previous year's CHF 401 million. Net Debt-to-EBITDA Leverage: 2.5 times. Regional Performance - EMEA: 1.9% growth at constant currencies. Regional Performance - Americas: 3.5% growth in local currencies. Regional Performance - Asia Pacific: Decline of 4.7% with negative organic growth of 2.1%. MBCC Synergies: CHF 79 million realized in the first half, with full-year guidance increased to CHF 160-180 million. Interest Expenses: Decreased by CHF 10 million to CHF 69 million. Group Tax Rate: Increased to 25% from 22.4%. Warning! GuruFocus has detected 2 Warning Sign with SKFOF. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Sika AG (SKFOF) demonstrated resilience in challenging market conditions, achieving a 0.6% local currency growth despite a declining overall market. The company successfully expanded its EBITDA margin by 20% to 18.9%, driven by efficiencies and synergies. Sika AG (SKFOF) increased its MBCC synergy targets by EUR20 million for the ongoing year, highlighting effective integration efforts. The company completed four bolt-on acquisitions in roofing and building finishing, indicating active market consolidation efforts. Strong growth momentum was observed in regions like Southeast Asia and India, contributing positively to the overall performance. Negative Points Sales were adversely impacted by foreign exchange movements, particularly in Q2, where the Swiss franc strengthened significantly against the US dollar. The Americas region faced challenges due to tariff discussions, causing confusion among customers and impacting growth momentum. The Asia Pacific region, particularly China, experienced a decline in sales due to a deflationary market environment in the construction sector. Operating free cash flow decreased significantly compared to the previous year, partly due to higher working capital and unfavorable currency movements. The group tax rate increased from 22.4% to 25% in the first half of the year, affecting net profit margins. Q & A Highlights Q: Can you provide an update on the price over cost dynamics for the second half of the year and the situation in China? A: Adrian Widmer, CFO, explained that input costs have been broadly flat with some downward pressure expected in the second half. Pricing contributions were marginal in Q1 and slightly more in Q2, with a net impact of about 30 basis points. In China, the focus is on protecting margins through selective price increases and efficiency improvements, despite a deflationary environment. Q: Could you elaborate on the market share gains and regional performance, particularly in the US and China? A: Thomas Hasler, CEO, noted that Sika has outperformed the market by 2% to 3% in Europe and maintained a gap in the US despite a slowdown. In China, Sika has outperformed competitors facing significant profitability declines, although the market remains challenging. Q: What are the assumptions behind your 2028 growth targets, and how do you plan to address the decrease in operating free cash flow? A: Thomas Hasler, CEO, emphasized the validity of megatrends like urbanization and digitalization. The strategy includes a mix of market recovery, outperformance, and pricing. Adrian Widmer, CFO, explained that the decrease in cash flow is due to higher working capital and investments, which are expected to unwind in the second half. Q: How do you view the potential for EBITDA margin improvement and achieving a 20% margin? A: Adrian Widmer, CFO, stated that the 19.5% to 19.8% EBITDA margin guidance for this year is driven by synergies and cost efficiencies. The company aims for a 20% margin by 2026, supported by continued synergies and efficiency improvements. Q: Can you discuss the impact of European stimulus and M&A activities on Sika's growth? A: Thomas Hasler, CEO, mentioned that European stimulus, particularly in Germany, will boost renovation activities and demand for sustainable solutions. On M&A, the company sees opportunities in small to midsize acquisitions, with a healthy pipeline and less pressure on multiples compared to high seasons. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Business Insider
19-07-2025
- Business
- Business Insider
Kepler Capital Keeps Their Buy Rating on Sika AG (SIKA)
In a report released on July 17, Martin Flueckiger from Kepler Capital maintained a Buy rating on Sika AG, with a price target of CHF250.00. The company's shares closed yesterday at CHF202.20. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Flueckiger covers the Industrials sector, focusing on stocks such as Compagnie de Saint Gobain, Kone Oyj, and Zehnder Group AG Class A. According to TipRanks, Flueckiger has an average return of 6.2% and a 60.16% success rate on recommended stocks. Sika AG has an analyst consensus of Moderate Buy, with a price target consensus of CHF252.06, representing a 24.66% upside. In a report released on July 17, UBS also maintained a Buy rating on the stock with a CHF285.00 price target. Based on Sika AG's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of CHF5.93 billion and a net profit of CHF669.6 million. In comparison, last year the company earned a revenue of CHF5.89 billion and had a net profit of CHF650.9 million
Business Insider
05-07-2025
- Business
- Business Insider
RBC Capital Reaffirms Their Buy Rating on Sika AG (SIKA)
RBC Capital analyst Oliver Dyson maintained a Buy rating on Sika AG today and set a price target of CHF270.00. The company's shares closed today at CHF208.50. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Sika AG has an analyst consensus of Moderate Buy, with a price target consensus of CHF246.78, representing a 18.36% upside. In a report released today, Morgan Stanley also maintained a Buy rating on the stock with a CHF254.00 price target. Based on Sika AG's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of CHF5.93 billion and a net profit of CHF669.6 million. In comparison, last year the company earned a revenue of CHF5.89 billion and had a net profit of CHF650.9 million
Business Insider
28-06-2025
- Business
- Business Insider
Morgan Stanley Remains a Buy on Sika AG (SIKA)
Morgan Stanley analyst Cedar Ekblom maintained a Buy rating on Sika AG (SIKA – Research Report) yesterday and set a price target of CHF257.00. The company's shares closed yesterday at CHF219.90. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Ekblom covers the Industrials sector, focusing on stocks such as Sika AG, A.P. Moeller Maersk A/S, and Buzzi SpA. According to TipRanks, Ekblom has an average return of 5.3% and a 56.60% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Sika AG with a CHF246.78 average price target, which is a 12.22% upside from current levels. In a report released on June 18, Goldman Sachs also initiated coverage with a Buy rating on the stock with a CHF280.00 price target.
Business Insider
14-06-2025
- Business
- Business Insider
Kepler Capital Sticks to Its Buy Rating for Sika AG (SIKA)
In a report released on June 12, Martin Flueckiger from Kepler Capital maintained a Buy rating on Sika AG (SIKA – Research Report), with a price target of CHF250.00. The company's shares closed yesterday at CHF209.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Flueckiger covers the Industrials sector, focusing on stocks such as Kone Oyj, Sika AG, and Georg Fischer AG. According to TipRanks, Flueckiger has an average return of 6.8% and a 62.30% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Sika AG with a CHF242.63 average price target.
