Holcim Earnings: On Track to Deliver Further Operating Margin Expansion

Narrow-moat Holcim delivered a 16% increase in organic operating profits, or a 90-basis-point improvement in its EBIT margin, during the first quarter, an indication that the group’s ongoing margin expansion is maintainable despite its record profitability during fiscal 2023. The first quarter is typically the least meaningful of the year for the construction sector, but we remain positive that the group will be able to achieve its 18% EBIT margin target for the full year given Holcim's strong start. Shares are trading broadly in line with our CHF 72 fair value estimate, which we maintain.