• Sales growth in H2 2024, with a sequential improvement in organic growth
• Record operating margin (11.4%), free cash flow (€4.0bn) and recurring EPS, despite a difficult environment in new construction in Europe
• More than 2/3 of pro forma operating income now generated in high-growth geographies: North America, Asia and emerging countries
• 4 strategic acquisitions finalized over the past 12 months for €5bn: CSR, Bailey, OVNIVER (Cemix brand) and FOSROC
• Strong value creation for shareholders: total shareholder return (TSR) of 32% in 2024. Dividend of €2.20 (up 5%) recommended for 2024. Share buyback program completed one year earlier than expected, with a new €400m target set for 2025
• 2025 outlook: the Group expects an operating margin of more than 11.0%
Benoit Bazin, Chairman and Chief Executive Officer of Saint-Gobain, commented:
“Our 2024 results once again demonstrate the success of Saint-Gobain’s new profile, with the Group delivering a very strong operating performance despite a mixed macroeconomic environment. The roll-out of our comprehensive range of sustainable and innovative solutions for our customers along with our local performance-driven organization have enabled us to report new record results. Over the past 12 months, Saint-Gobain also completed four landmark acquisitions, which are perfectly aligned with our strategy of worldwide leadership in light and sustainable construction and located in regions with strong structural growth: CSR in Australia, Bailey in Canada and, in construction chemicals, Cemix in Mexico and FOSROC in India and the Middle East. I’m once again extremely grateful for the dedication and talent shown by all our teams, who are key to our success.
I am confident that 2025 will be another successful year for Saint-Gobain, thanks to a good dynamic in most of our regions, a gradual recovery in Western Europe, and the integration of our recent acquisitions. In this context, the Group is expecting an operating margin of more than 11.0% in 2025, above the initial objective of its strategic plan.
After the success of the “Grow & Impact” plan, we will share the Group’s new ambitions at our Investor Day on October 6, reflecting the continuation of our strategy of worldwide leadership in light and sustainable construction along with our growth and outperformance plan.”
Strong financial performance
• All of the Group’s financial objectives set out in the “Grow & Impact” plan in 2021 have been achieved, setting the Group on a financial trajectory marked by growth in earnings, cash flow and value creation. On average over the four-year period 2021-2024, the Group delivered organic growth of 3.9%1, operating margin of 10.8%, a free cash flow conversion ratio of 59% and ROCE of 15.4%.
Attractive profitable growth profile
• An acceleration in the Group’s geographic development in regions with strong profitable growth: North America (34%) and Asia and emerging countries (34%) now account for 68% of operating income (pro forma for recent changes in Group structure) and Western Europe 32%;
• Creation of a worldwide leader in construction chemicals, with €6.5 billion in annual sales (pro forma for recent changes in Group structure): the acquisitions of Cemix and FOSROC reinforce Saint-Gobain’s presence in high-growth emerging countries, particularly Mexico, India and the Middle East, and perfectly complement the geographical positions and technologies of Weber, Chryso and GCP;
• A local organization: 90% of CEOs are native to their country, resulting in close proximity to customers, good pricing power, efficiency gains, high accountability and a capacity to adapt quickly to ever-changing environments across the globe;
• Around 40% of Group sales rotated since 2018: €9.6 billion in sales have been divested (EBITDA margin of less than 5%) and €6.8 billion in sales acquired (EBITDA margin of around 20%);
• Smooth integration of recent acquisitions, with synergies confirmed: Chryso and GCP reported an EBITDA margin of 20%, up 140 basis points in 2024 (following a rise of more than 400 basis points in 2023); CSR, an EBITDA margin of 18.1% on a full-year basis (consolidated as of July 9, 2024); and recent Canadian acquisitions, an EBITDA margin of 19% on a full-year basis for Bailey (consolidated as of June 3, 2024), Building Products of Canada (2023) and Kaycan (2022);
• Strongly value-creating shareholder return policy: total shareholder return of 156% over a four-year period, with €5.6 billion returned to shareholders through share buybacks and dividends. With €2 billion worth of shares bought back since 2021, the Group has completed its five-year program (2021-2025) one year earlier than expected, and is announcing a new €400 million target for 2025.
Differentiated offer of sustainable solutions: a competitive advantage
• Sustainable solutions offer: almost 3/4 of sales, based on differentiated and innovative systems for faster and higher-quality construction, reinforcing the Group’s mix along with its ability to capture a larger part of the value chain:
o Ore® (low-carbon glass in Europe and India), Gyproc SoundBloc Infinaé 100 (the Group’s first plasterboard made from 100% recycled gypsum, in the UK), ClimateFlex® (a roofing technology offering enhanced resistance to extreme weather events), Lanaé® (a glass wool designed from c.50% recycled glass and a biosourced binder), Enaé® (a new range of mortars with a low carbon footprint), EnveoVent (high-performance façade systems), and EnviroMix®C-Clay (a range of admixtures developed by Chryso enabling the reduction of cement’s carbon footprint by up to 40% with the use of calcined clay);
o Approximately 60% of products manufactured by the Group are covered by life cycle analyses (LCA), meeting the growing demand for the environmental certification (LEED or BREEAM) of buildings.
• Environmental performance supporting the Group’s range of sustainable solutions and aligned with the Group’s objectives:
o 34% pro forma reduction in scope 1 & 2 CO2 emissions (to 8.9 million tonnes1) compared with 2017, with CSR and Bailey consolidated on a full-year basis;
o 67% of electricity from carbon-free sources, versus 57% in 2023. Four major new power purchase agreements signed in 2024 (France, Italy and Romania).
Combining growth with responsibility
• Outstanding employee engagement, with all indicators up since 2019: 89% of the Group’s employees took part in the me@Saint-Gobain annual survey, with an engagement rate of 84% and with 89% of employees proud to work for Saint-Gobain (versus a benchmark average of 75%);
• Solid safety performance: the Group’s accident frequency rate with and without lost time (TRAR at 1.4) has been halved over the last seven years;
• Thought leadership in accelerating the transition to more sustainable construction: as part of the “Sustainable Construction Observatory” launched by Saint-Gobain in 2023, “Sustainable Construction Talks” were held in New York during the Climate Week, in Brussels, and at the World Economic Forum in Davos, to highlight the construction industry’s role in the achievement of sustainable development goals and to present climate change adaptation solutions.
Asia-Pacific: sales growth and margin remaining at a record high
The Region delivered 0.6% organic growth in 2024, driven by good momentum in India, despite the downturn in China. The operating margin remained at a record high of 12.6%, supported by volumes, as well as good pricing and cost management.
In a new construction market that remains sharply down in China, the Group continued to outperform thanks to its exposure to renovation and to its digital sales model.
India saw further market share gains, with significant volume growth of approximately 10%, benefiting from the strength of the Saint-Gobain brand in the country and from its comprehensive and innovative range of sustainable solutions, allowing the Group to outperform in multi-family housing and non-residential markets.
South-East Asia reported growth, driven by its second-half performance and strong momentum in Indonesia, benefiting from the enhancement of its range of innovative solutions, as well as from Vietnam, which won new customers thanks to the rollout of customized logistics and digital solutions.
The integration of CSR in Australia – completed on July 9, 2024 – is progressing well, with a good operating performance in the second half.
In 2025 the Group will continue to implement the strategic priorities of its “Grow & Impact” plan:
Strategic priorities and 2025 outlook
1) Continue our initiatives focused on profitability and free cash flow generation
• Constant focus on margin through management of the price-cost spread and ongoing productivity and industrial cost-saving initiatives;
• Capital expenditure around 4.5% of sales, with strict allocation to structurally high-growth markets.
2) Outperform our markets by strengthening our profitable growth profile
• Enrich our comprehensive range of integrated, differentiated and innovative solutions offering sustainability and performance for our customers;
• Leverage the full potential from the integration of recent acquisitions;
• Continue to enhance the Group’s profile through value-creating acquisitions and divestments.
3) Continued focus on our ESG roadmap as worldwide leader in light and sustainable construction
• Promote our positive-impact sustainable solutions – low-carbon and with high-recycled- content – among our customers;
• Extend the decarbonization of construction to the entire value chain, playing our full role as leader in light and sustainable construction across the globe.
In a macroeconomic environment that remains contrasted, Saint-Gobain will continue to demonstrate a very strong operating performance in 2025. Assuming no major disruption linked to geopolitics, the Group expects the following trends:
• Europe: construction markets stabilizing, with a gradual recovery country-by-country expected in the second half;
• Americas: a good level of activity maintained in North America and Latin America;
• Asia-Pacific: growth led mainly by India, South-East Asia and the integration of CSR in Australia;
• High Performance Solutions: dynamic growth in Construction Chemicals; Mobility to hold firm thanks to its high value-added solutions; gradual recovery in growth expected for most industrial markets.
Saint-Gobain expects an operating margin of more than 11.0% in 2025
