Holcim (AO) | Buy | Reassuring management tone

Research evidence excerpt

Holcim (AO) | Buy | Reassuring management tone

Holcim Buy | Target Price: CHF84.00

Company description Management

Holcim is a leading global heavy building materials manufacturer that resulted Miljan Gutovic, CEO

from the Holcim-Lafarge merger in 2015. The company spun off its North Steffen Kindler, CFO

American operations (Amrize) in mid 2025, which reduced its footprint to Europe,

Latin America and AMEA. The company’s core products are cement and Key shareholders

aggregates (Building Materials) and ready-mixed concrete and other building Free float 92.30%

products (Building Solutions). Product diversification and European Thomas Schmidheiny 6.50%

decarbonisation are key drivers of the company.

Investment case Valuation methodology

After spinning off its North American operations in June of last We value Holcim on the basis of a 2027-30 DCF model.

year (Amrize), Holcim is now fully focused on heavy-side We use an average WACC of 8% on the basis of a beta of 1. We

materials and the synergistic diversification into Building factor in a conservative perpetual growth rate of 1.6% in 2030

Solutions in three key regions: Europe, Latin America and AMEA. due to the unclear long-term implications of the planned EU ETS

The combination of the resurgence of European volumes, framework overhaul.

pricing power, the increasing weight of higher-margin We deduct the earnings multiples-based value of minorities and

sustainable products and emerging market growth should the pension liability from the net present value of the

translate into healthy earnings progress in 2026-30. company's cash flows.

Despite the lack of visibility on the future of the EU ETS Risks to our rating