This article first appeared on GuruFocus .
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Revenue:Non-GAAP revenue up 5.3% in Q2; reported revenue up 0.2% year-on-year for H1.
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EBITDA:Group reported EBITDA of EUR163.9 million, down 5.5%; Non-GAAP EBITDA down 10% to EUR163.6 million; Q2 EBITDA up 12.9%.
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Non-GAAP EBITDA Margin:19.3% versus 21.2% in H1 last year.
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Net Profit:Group net profit down 16.7% to EUR62 million; Non-GAAP net profit down 18.9% to EUR66 million.
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Cement Volumes:Consolidated cement volumes down 2.9% reported; at constant perimeter, Q2 volumes up 3.4%.
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Ready-Mix Concrete (RMC) Volumes:Down 10.9% reported.
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Aggregate Volumes:Down 2.6% reported.
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Net Cash:EUR276.8 million at half-year, an improvement of EUR132.8 million year-on-year.
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Nordic and Baltic EBITDA:Down 21% year-on-year.
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Belgium and France EBITDA:Up 7% year-on-year.
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North America EBITDA:Up 1.8% year-on-year.
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Egypt EBITDA:Up 43% year-on-year.
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Asia-Pacific EBITDA:China down 21.4%; Malaysia down 55%.
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Full-Year 2026 Guidance:Revenue around EUR1.7 billion; EBITDA between EUR400 million and EUR420 million; Net cash around EUR590 million.
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Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Significant improvement in Q2 2026 with cement volumes up 3.4%, revenue up 5.3%, and EBITDA up 12.9% at constant perimeter.
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Strong performance in Egypt with domestic cement volumes up 31% and EBITDA up 43%, driven by market share gains and favorable export mix.
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Successful acquisition of Nymlle, the largest aggregate player in Denmark, enhancing vertical integration and expected to deliver synergies of EUR4 million within 24 months.
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Effective hedging and risk management mitigated energy cost volatility, with no meaningful impact from geopolitical conflicts on operations.
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Confirmed full-year 2026 guidance with revenue target of EUR1.7 billion and EBITDA range of EUR400-420 million, supported by pricing initiatives and cost control.
Negative Points
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Reported cement volumes declined 2.9% in H1 2026 due to adverse weather conditions and weak demand in Nordic and Baltic regions.
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Negative forex impact of EUR37.4 million on revenue and EUR2.6 million on EBITDA, primarily from Turkish lira and US dollar depreciation.
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Continued weakness in Turkey with domestic cement volumes down 13%, impacted by hyperinflation, high interest rates, and reduced post-earthquake reconstruction demand.
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Persistent cost pressure on petcoke supply and logistics, with limited hedging options and exposure in Egypt, China, and Malaysia.
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Declining volumes in China (down 6%) and Malaysia (down 11% domestically), with EBITDA in Malaysia down 55% due to higher distribution costs.
Q & A Highlights
Q: The company's guidance implies mid to high single-digit EBITDA growth in the second half despite a 10% decline in H1. What are the specific grounds for this confidence, and can you comment on the potential M&A in Brazil, which seems to be a crowded process with potentially stretched multiples? A: Francesco Caltagirone Jr, Executive Director, CEO and Chairman: We are confident we can reach our guidance. The trajectory from Q2 is in line with the recovery we need. While there are headwinds, especially from project delays affecting sales volumes, we are mostly hedged on the cost side and don't expect surprises there. Even with a mild market decline, we have been able to balance and recover. I am more confident now than three months ago. Regarding Brazil, I agree that newspaper expectations for the price are likely too high. We have our discipline. It might be an opportunity to enter a country, but the assets must be in good shape and the price reasonable. At the prices you read about, we are probably not interested. It's a crowded process, and we are still in a non-binding phase, evaluating if a carved-out part of the perimeter could fit.
Q: You previously mentioned EUR38 million in extra costs from geopolitical tensions. Now you're talking about EUR8 million in Q1 and EUR0 million in Q2. What changed? Also, any update on the Aragon (Axion) project in Denmark? A: Francesco Caltagirone Jr, Executive Director, CEO and Chairman: At the end of Q1, if conditions had remained the same, we expected EUR38 million in extra costs. However, the price of oil dropped from $120 to around $70, so we only felt about EUR8 million of that hike in Q2. Going forward, if global tensions de-escalate, the extra cost will be lower. If the context worsens, we might stick to our original forecast. On the Aragon project, we are waiting for alignment with the other players involved in the pipeline and storage. We expect by early 2027 to be fully aware of the agenda, as the company responsible for the storage area is conducting seismic studies to ensure no leakage. This will take nearly 30 months, and their final opinion is expected in early 2027.
Q: Can you update us on cost inflation and pricing initiatives? Also, what is the overall strategy and priority for cash deployment and M&A, given recent rumors about Latin America? A: Marco Bianconi, Head of M&A and IR: On cost inflation, the hit in Q1 was due to increased specialty input costs. In Q2, we clawed back some of this thanks to our hedging, offsetting the majority of price increases for thermal energy and electricity. The delta in our electricity and fuels bill in Q2 compared to last year is essentially unchanged. Francesco Caltagirone Jr, CEO: On pricing, you can see that despite a slight decline in cement volumes and a 10% decline in RMC, revenues are almost in line at the same perimeter. This means there has been a price hike almost everywhere to cover costs, which is why we nearly halved the EBITDA gap from Q1. On M&A strategy, we look at opportunities as they arise. South America is the only region where we are not active. The CSN asset is on the market because the seller is forced to sell. We are evaluating it, but the whole perimeter is too big for us. We are in a preemptive phase, and it might or might not fit.
Q: How are you managing the specific exposure to petcoke, given that supply is concentrated and it's difficult to hedge? A: Marco Bianconi, Head of M&A and IR: Petcoke is a peculiar fuel as supply is concentrated in the US Gulf. The only way to materially hedge is by buying forward, which we have done, which is why you don't see a meaningful movement in our thermal energy bill. Going forward, we need to monitor the dollar and the commodity dynamic closely. We also try to diversify our supply base. Francesco Caltagirone Jr, CEO: I would add that our consumption of petcoke in Europe is decreasing due to the use of alternative fuels. In Denmark and Belgium, alternative fuel use is around 75%. In the US, we use natural gas. The only countries that are full petcoke are Egypt, China, and Malaysia, which account for less than 15% of our total quantity. So, while it's an issue, the impact on our balance sheet is manageable.
Q: How do you see the Turkish market evolving in the coming quarters, and could the Carbon Border Adjustment Mechanism (CBAM) change the competitive environment there? A: Francesco Caltagirone Jr, Executive Director, CEO and Chairman: Despite a slow start due to weather, the Turkish market is now gathering pace. We don't think the market will be lower than last year, even after selling one plant. We are seeing a recovery in consumption in July and price increases are happening due to high inflation (around 30%). On CBAM, when it is in place, it should simplify the competition framework in Turkey. If Turkey doesn't start its own carbon pricing system, its exports to Europe will be taxed at the EU carbon price (around EUR80) instead of the local EUR10-15. This is a big difference, so it's in Turkey's interest to put a system in place. This should start to level the playing field, similar to what happened in Europe 15-20 years ago.
Q: Can you comment on the recovery in Denmark and the performance of white cement? Also, will the positive impact from new customers in France and Belgium continue in the second half? A: Francesco Caltagirone Jr, Executive Director, CEO and Chairman: The dynamics of white cement are different from grey cement; it is much less affected by the highs and lows of the cycle, which is why it performed better. For the second half, we see a mild recovery. There are project delays, but delays mean they are not cancelled. We are starting to see this in Northern Europe, including the Netherlands, Belgium, and France. Regarding new customers in France and Belgium, this is a normal market adjustment. I cannot say they will stay forever, but for the next five months and probably next year, I am positive on this.
Q: You seem a bit ahead of your full-year CapEx target of EUR130 million. Can you comment on this? A: Francesco Caltagirone Jr, Executive Director, CEO and Chairman: Due to unfavorable climatic conditions in Q1, we sped up some investments in the first part of the year because it was difficult to sell cement. It is not our intention
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
