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Saint-Gobain sets profitability and sales targets under ‘Lead & Grow’ plan
Yahoo Finance· 2025-10-08 11:01
Core Viewpoint - Saint-Gobain has launched a new strategic plan named 'Lead & Grow', focusing on profitable growth and financial targets for 2026-2030, with a planned investment of around €12bn ($14.01bn) for growth and acquisitions [1][2]. Group 1: Strategic Focus - The company aims to maintain its leadership positions and expand in high-growth countries, particularly in construction chemicals [1]. - Asset rotation is expected to account for over 20% of sales by 2030 as part of the business portfolio adjustment [2]. Group 2: Financial Targets - Saint-Gobain targets mid-single-digit average sales growth in local currencies, aiming to outperform the market by one to two percentage points [2]. - The EBITDA margin is set between 15% and 18%, an increase from the previous target of 9% to 11% operating margin [3]. - The company anticipates an operating margin above 11.0% for the full year of 2025 and a return on capital employed exceeding 13% [3]. Group 3: Shareholder Returns - Approximately €8bn is planned to be returned to shareholders, including €6bn through dividends and €2bn through share buybacks, with a focus on consistent dividend growth [4]. Group 4: Market Contribution - North America, Asia-Pacific, and emerging economies are expected to contribute nearly 60% of total sales in the long term, up from the current 50% [5]. - The company continues to develop solutions for new construction, renovation projects, and infrastructure applications [5].