RESILIENT PERFORMANCE IN FIRST NINE MONTHS – STRATEGIC ACTIONS TO DRIVE GROWTH AND PROFITABILITY

Core Insights - Sika demonstrated resilience in the first nine months of 2025, achieving a sales increase of 1.1% in local currencies despite challenging construction markets, particularly in China [2][3][6] - The company is implementing strategic actions, including structural adjustments and an investment program, to drive growth and profitability [3][12][13] Financial Performance - Sales in Swiss francs decreased to CHF 8.58 billion from CHF 8.91 billion, reflecting a foreign currency impact of -4.9% primarily due to a weak US dollar [2][6] - The material margin improved to 55.0% from 54.7%, while the EBITDA margin expanded to 19.2% from 19.1% [2][6] - Operating profit before depreciation (EBITDA) was CHF 1.64 billion, down from CHF 1.70 billion in the previous year [2][6] Regional Performance - In the EMEA region, sales grew by 2.1% in local currencies, with strong performance in the Middle East and Africa [5][7] - The Americas region saw a sales increase of 2.9% in local currencies, although growth softened due to US trade policy uncertainties [7] - The Asia/Pacific region experienced a decline of -3.9% in local currencies, primarily due to the downturn in China's construction sector [8][9] Strategic Initiatives - Sika is undertaking structural adjustments in response to weak markets, particularly in China, with anticipated one-off costs of CHF 80 to 100 million in 2025 [6][12] - The "Fast Forward" program aims to enhance operational excellence and customer value through digital acceleration, with investments of CHF 120 to 150 million expected to yield annual savings of CHF 150 to 200 million [12][13] - The company plans to reduce its workforce by up to 1,500 employees as part of these adjustments [6][12] Outlook - For 2025, Sika anticipates a modest increase in local currency sales and an EBITDA margin of approximately 19% after one-off costs [13][14] - The medium-term target includes an EBITDA margin of 20-23% and a revised growth guidance of 3-6% in local currencies [14]