Portfolio Optimisation. Growth inflecting upwards.

Research evidence excerpt

Portfolio Optimisation. Growth inflecting upwards.

UpdateMshares has been a lack of catalysts and positive earnings revisions. We can't argue

with the lack of upgrades, but some of this is macro (weak US roofing market, EU

recovery pushed to the right, stretching housing affordability pressuring residential).

When focussing on what the business can control, we are encouraged by cash

conversion, capital discipline and price/cost management. On MS estimates, the

shares trade at 13.1x FY26 P/E, 6.8% FCFY, positioning it at the bottom end of the

Building Materials peer comp set.

Exhibit 1: Since the start of 2019, the company has closed over 150 acquisitions

and over 70 divestments. Portfolio optimisation progress since 2019: large

acquisitions have focused mostly on the North American and Asian markets.

Large divestments have been dominated by distribution and glass businesses

2019 2020 2021 2022 2023 2024 2025 2026

Source: Saint-Gobain Investor Relations, Morgan Stanley Research

Dahl is exemplary evidence of meaningful portfolio rotation: The business

generated ~€2bn of sales in 2025, and is in the process of being sold for an EV of

€1,518mm, at 10.4x 2025 EBITDA including leases, or 14.6x excluding lease liabilities.

This implies ~4% of FY25 SGO group revenue and ~2% of FY25 EBITDA, implying an

EBITDA margin of ~7%, versus the group margin of +15%.

Exhibit 2: Announced Acquisitions & Divestments YTD – we see a 6% revenue

impact across divestments and acquisitions.

DIVESTITURES — Saint-Gobain FY2026 YTD

Company / business sold announcedDate Dateexpectedcompleted / Description of business sold ~Revenueestimate ~Earningsestimate EnterpriseValue

Dahl - Specialist distribution Specialist distribution business under the Dahl / Brødrene