Group 1 - The conference is focused on Holcim's Q3 2025 Trading Update, providing insights for analysts and investors [1] - The event is being conducted in a listen-only mode, indicating a structured presentation format [1] - The conference is recorded for internal purposes, emphasizing the importance of the information shared [1]

Core Viewpoint - The comparison between Quanex Building Products (NX) and Holcim Ltd Unsponsored ADR (HCMLY) indicates that NX presents a better value investment opportunity due to its stronger earnings outlook and favorable valuation metrics [1][3][7]. Valuation Metrics - NX has a forward P/E ratio of 7.51, significantly lower than HCMLY's forward P/E of 20.82, suggesting that NX is undervalued relative to HCMLY [5]. - The PEG ratio for NX is 0.54, indicating a more attractive valuation when considering expected earnings growth, while HCMLY's PEG ratio stands at 2.07 [5]. - NX's P/B ratio is 0.9, compared to HCMLY's P/B of 1.44, further supporting the notion that NX is undervalued [6]. Investment Outlook - NX holds a Zacks Rank of 2 (Buy), reflecting an improving earnings estimate revision activity, while HCMLY has a Zacks Rank of 5 (Strong Sell), indicating a less favorable analyst outlook [3][7]. - Based on the combination of its improving earnings outlook and favorable valuation metrics, NX is positioned as the superior value option in the current market [7].

Financial Data and Key Metrics Changes - Net sales remained stable compared to Q1 2024 despite adverse weather conditions in North America [3] - Recurring EBIT increased by 1.7% in local currency year-over-year, with a rolling recurring EBIT margin of 19.1% and recurring EBIT exceeding CHF 5 billion [5][6] - The company confirmed full-year guidance for 2025, expecting mid-single-digit net sales growth in local currency and over-proportional growth in recurring EBIT [4][23] Business Line Data and Key Metrics Changes - The Solutions & Products segment saw net sales growth driven by roofing in North America, with margin expansion noted [20] - ECOPact and ECOPlanet products achieved net sales of 32% and 29% respectively in their categories, indicating strong customer demand [9] - Latin America recorded an outstanding recurring EBIT margin of 35% in Q1, supported by M&A activities [16] Market Data and Key Metrics Changes - North America experienced strong market fundamentals driven by infrastructure modernization and onshoring of manufacturing, despite initial weather-related challenges [15] - Asia, Middle East, and Africa reported double-digit recurring EBIT growth, particularly in North Africa, with a margin expansion of 250 basis points to 21.7% [18] - The company secured over 230 infrastructure projects in North America, with no cancellations or postponements reported [31] Company Strategy and Development Direction - The company is focused on a local-for-local business model, emphasizing domestic production and decentralized operations [21][22] - Continued emphasis on sustainable building solutions and M&A activities in attractive markets is part of the growth strategy [6][24] - The spin-off of Amrize is on track for June, with significant milestones achieved [4][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased economic uncertainty but expressed confidence in the company's resilience and ability to navigate economic cycles [21] - The outlook for 2025 remains positive, with expectations for continued profitable growth and a focus on controlling costs [23][24] - Management highlighted strong demand for sustainable solutions and a robust project pipeline in various regions [19][23] Other Important Information - The company was recognized as a global climate leader by CDP, ranking on the prestigious A List for climate for the fourth time [7] - Construction of a new site in Tilbury, U.K., is underway to serve the growing London market, expected to be commissioned by H1 2026 [7] Q&A Session Summary Question: Demand for ECOPact in Asia, Middle East, and Africa - Management noted strong demand for ECOPact in Australia and North Africa, with significant acceptance of new products [32] Question: Pricing momentum by geography - Pricing momentum is robust across Europe and the U.S., with double-digit growth in emerging markets [37] Question: Price-cost spread assumptions - The company reported a positive price over cost of CHF 95 million in Q1, with low to mid-single-digit price increases across the company [39][40] Question: Impact of macro volatility on M&A strategy - Management confirmed that M&A activities will continue with strict discipline, unaffected by global uncertainties [48] Question: Strength of Latin American results - The company attributed strong performance in Mexico to effective commercial activities and expansion of the Disensa store network [56] Question: Update on debt split between Amrize and Holcim - The debt split has been approved and is on track, with a focus on maintaining a strong credit rating for both entities [60][62] Question: Pricing trends for ECOPlanet - Pricing premiums for ECOPlanet remain stable, with expectations for innovation to enhance pricing power [111] Question: Central overhead post-separation - Management confirmed no redundancy will occur, and central overhead is expected to decrease over time [126][129]

Core Viewpoint - Holcim Ltd Unsponsored ADR (HCMLY) is currently viewed as a better value opportunity compared to Knife River (KNF) based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Holcim Ltd has a Zacks Rank of 2 (Buy), indicating a strong earnings outlook, while Knife River has a Zacks Rank of 4 (Sell) [3]. - The improvement in earnings outlook for HCMLY is stronger than that of KNF, making it more appealing for value investors [3]. Group 2: Valuation Metrics - HCMLY has a forward P/E ratio of 15.22, significantly lower than KNF's forward P/E of 23.57, suggesting that HCMLY is undervalued relative to KNF [5]. - The PEG ratio for HCMLY is 2.20, while KNF's PEG ratio is slightly higher at 2.26, indicating that HCMLY may offer better value considering its expected earnings growth [5]. - HCMLY's P/B ratio stands at 1.97, compared to KNF's P/B of 3.65, further supporting the argument that HCMLY is the superior value option [6]. Group 3: Value Grades - Based on the analysis of various valuation metrics, HCMLY holds a Value grade of B, while KNF has a Value grade of C, reinforcing HCMLY's position as the better value investment [6].

Financial Data and Key Metrics Changes - In Q3 2024, Holcim achieved record recurring EBIT of CHF 1.67 billion, with a record margin of 23.5% [3] - The EBIT margin increased by 160 basis points over the first nine months to a record 19.5% [6] - Recurring EBIT for the first nine months increased by 6.6% in Swiss francs, despite a 4.5% negative impact from the appreciation of the Swiss franc [12][13] Business Line Data and Key Metrics Changes - North America saw significant expansion in recurring EBIT margin, driven by strong market fundamentals and federal infrastructure investments [14] - Latin America delivered the 17th consecutive quarter of profitable growth, with three synergetic acquisitions in Q3 [15] - The Solutions & Products segment produced the largest percentage increase in both net sales and recurring EBIT, driven by roofing systems [16] Market Data and Key Metrics Changes - Demand across key markets remains positive, with robust infrastructure activity expected in North America and Europe [4][5] - In North America, the outlook is strong due to federal and state investment programs, with over CHF 4 billion in additional infrastructure investments announced [5] - Europe is expected to see resilience in demand, particularly in infrastructure and energy transition projects [5] Company Strategy and Development Direction - Holcim's strategy focuses on high-value solutions and sustainable building practices, with continued investment in circular construction and technology [3][11] - The company is committed to delivering another record year in 2024, with a focus on capital allocation to maximize shareholder value [7][18] - Holcim plans to complete the listing of its North America business in the U.S. in the first half of 2025, aiming to unlock new value creation [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model across market conditions, with expectations for continued margin expansion [18] - The company anticipates a slight recovery in the residential market in 2025, driven by interest rate cuts and strong infrastructure investments [26] - Management highlighted the importance of cost discipline and ongoing focus on operational efficiency [45] Other Important Information - Holcim completed over 100 acquisitions in the last five years, transforming its portfolio to capture growth opportunities [7] - The company is on track to reach a target of 10 million tonnes of recycled construction and demolition materials by the end of the year, representing a 20% increase from the previous year [18][11] - Holcim received additional grants from the EU innovation fund for carbon capture projects, bringing the total funding to approximately CHF 1 billion [61] Q&A Session Summary Question: Insights on Solutions & Products business performance - Management noted that roofing remains a significant part of the Solutions & Products business, with strong demand despite weather-related challenges [20][21] Question: Preliminary expectations for 2025 volume trends - Management expects a slight recovery in 2025, particularly in North America, driven by federal investments and potential residential market recovery [26] Question: Capital Market Day timing and capital allocation strategy - Management confirmed that the Capital Market Day will be scheduled after finalizing the spin-off details, with a focus on growth and shareholder value [28][31] Question: 2025 outlook on costs and margin improvements - Management expressed optimism about infrastructure demand and gradual price increases, while also focusing on cost management to improve margins [34] Question: Carbon capture project funding and CapEx trajectory - Management confirmed that the total funding from the EU for carbon capture projects is around CHF 1 billion, with CapEx spread over the next six years [60] Question: Performance of ECOPact and ECOPlanet products - Management stated that ECOPact and ECOPlanet are expected to grow significantly, with a target of over 55% of total sales in these products by 2030 [49]

La Confluence, Namur, Belgium built with Elevate RubberGardTM EPDM roofing membrane HALF-YEAR 2024 RESULTS RECORD PROFITABLE GROWTH MILJAN GUTOVIC – CEO | STEFFEN KINDLER – CFO JULY 26, 2024 01. HIGHLIGHTS AND KEY DEVELOPMENTS MILJAN GUTOVIC | CEO Wood Wharf, London, UK built with ECOPact with construction demolition materials inside 3 H1 2024 HIGHLIGHTS RECORD PROFITABLE GROWTH | --- | --- | |------------------------------------------------------------------------------------------------|------------------ ...

Company Overview - Holcim Ltd Unsponsored ADR (HCMLY) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, HCMLY shares increased by 2.14%, while the Zacks Building Products - Miscellaneous industry rose by 2.72% [5] - In the last quarter, HCMLY shares have risen by 11.04%, and over the past year, they have increased by 52.37%, significantly outperforming the S&P 500, which rose by 5.04% and 33.96% respectively [6] Trading Volume - The average 20-day trading volume for HCMLY is 112,705 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for HCMLY have been revised upwards, increasing the consensus estimate from $1.30 to $1.34 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions, indicating a positive earnings outlook [9]

Core Viewpoint - Cemex, S.A.B. de C.V. is experiencing improved investor sentiment due to recent divestitures and acquisitions, which are part of a broader portfolio rebalancing strategy aimed at driving sustainable growth [1][3]. Group 1: Recent Divestitures and Acquisitions - On September 10, Cemex announced the divestiture of its operations in Guatemala to Holcim Group for approximately $200 million, which includes a grinding mill with a capacity of nearly 0.6 million metric tons per year, three ready-mix plants, and five distribution centers [1]. - On September 4, Cemex decided to sell its remaining 34.8% interest in Neoris N.V. for approximately $209 million in cash, while maintaining a commercial relationship post-transaction [2]. - Cemex has announced the sale of more than $2 billion in assets as part of its portfolio rebalancing strategy, with plans to redeploy proceeds primarily in developed markets, especially the United States [3]. Group 2: Strategic Focus Areas - The company will prioritize the proceeds from divestments towards aggregates, urbanization solutions, and cement, with a strong emphasis on lower-carbon and circular economy initiatives [4]. - Cemex has acquired a majority stake in a recycling company, RC-Baustoffe Berlin GmbH & Co. KG, as part of its strategy to enhance its sustainability efforts [4]. - In collaboration with the Ellen MacArthur Foundation, Cemex aims to leverage the potential of the cement value chain in circularity [5]. Group 3: Industry Context and Performance - Despite a 12.9% decline in Cemex's stock over the past three months, the overall industry has also faced challenges, with a decline of 11.3% [7]. - The stock improved from a 25.5% decline year-to-date, while the industry experienced only a 0.7% decline [8]. - An increase in spending on infrastructure and public construction is expected to drive growth in the industry, alongside improvements in the single-family residential construction market [9].

Core Insights - Holcim AG has shown resilience in revenue developments, benefiting from falling electricity and freight costs, although concerns about cement supply over the next five years persist [1][6][8] - The company reported a 12.7% increase in recurring EBIT in local currency for H1 2024, driven by lower costs [5][6] - The overall market dynamics indicate a potential threat from increased cement production capacity in India and import dynamics from China, which could impact Holcim's market position [4][8] Financial Performance - The fully diluted earnings per share for Holcim AG were reported at 2.16 in H1 2024, reflecting a 1.6% growth in local currency [2] - EBIT performance for H1 2024 was recorded at 2,210 million CHF, up 8.1% compared to the previous year [5][6] - The cost of goods sold (COGS) has decreased significantly, contributing to the solid EBIT performance, with electricity and fuel costs accounting for 30-40% of COGS and freight around 20-30% [6][7] Market Dynamics - The company is focusing on value and cost efficiency amidst soft volume trends in most markets, except for Asia and the Middle East [4] - Significant capacity increases in India are expected to boost global cement production by 25% over the next six years, posing a competitive threat to Holcim [4][8] - The cyclicality and commodified nature of the cement business raise concerns about the durability of the current decrease in energy prices and potential supply chain disruptions [8] Competitive Landscape - Holcim's forward P/E ratio is around 13x, which is higher compared to competitors like Heidelberg Materials AG at above 8x, raising questions about its value proposition in the market [8] - The focus on reducing emissions and costs among producers in major markets like Europe and North America may limit growth opportunities for Holcim [8]

Core Viewpoint - Holcim Ltd Unsponsored ADR (HCMLY) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The upgrade reflects an improvement in Holcim's earnings outlook, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in Holcim's underlying business, encouraging investors to push the stock higher [6]. Importance of Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specific Earnings Estimates for Holcim - For the fiscal year ending December 2024, Holcim is expected to earn $1.34 per share, reflecting a 10.7% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Holcim has increased by 2.3%, indicating a positive trend in earnings expectations [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [10]. - Holcim's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].