Yahoo Finance

• Revenue Growth: Sequential improvement in sales with 1.6% growth in the second half of 2024 at constant exchange rate.

• Operating Margin: Record operating margin at 11.4%.

• Recurring Net Income: Record recurring net income at EUR 3.5 billion.

• Free Cash Flow: Record level of free cash flow at EUR 4 billion with a 62% cash conversion ratio.

• EBITDA Margin: New record EBITDA margin at 15.5%.

• Net-Debt-to-EBITDA Ratio: 1.4 times at the end of December.

• Europe Operating Margin: New record operating margin at 8.4%.

• Americas Operating Margin: New record operating margin at 18%.

• Asia Pacific Operating Margin: Record level operating margin at 12.6%.

• High Performance Solutions Operating Margin: Increased slightly to 4.1%.

• Dividend Per Share: Planned dividend of EUR 2.2 per share, up 5% for 2025.

• Share Buyback Commitment: EUR 400 million in 2025.

• Warning! GuruFocus has detected 8 Warning Signs with NEXXY.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Compagnie de Saint-Gobain SA (CODGF) achieved record financial results in 2024, including a record operating margin of 11.4%, recurring net income of EUR3.5 billion, and free cash flow of EUR4 billion.

• The company expanded its presence in high-growth markets through strategic acquisitions in Australia, Canada, India, the Middle East, Asia Pacific, and Mexico, contributing to over two-thirds of its operating profit.

• Significant progress was made in sustainability, with a 34% reduction in Scope 1 and 2 CO2 emissions since 2017 and the launch of innovative products like the 100% recycled gypsum plasterboard.

• The Grow & Impact strategy has been successfully executed, focusing on financial performance, pricing power, disciplined capital allocation, and sustainability as a competitive advantage.

• The company maintained a strong balance sheet with a net-debt-to-EBITDA ratio of 1.4 times, allowing for continued investment in growth and strategic acquisitions.

Negative Points

• Despite overall strong performance, the European market remained challenging, with new construction markets down and only a gradual recovery expected in the second half of 2025.

• Volumes were down slightly for the full year, and prices were slightly down due to a deflationary environment, although a stabilization was noted towards the end of 2024.

• The company faces potential risks from geopolitical uncertainties, including energy price volatility and potential tariffs, which could impact future performance.

• The High Performance Solutions segment saw a decline in sales over the full year, although there was a sequential improvement in the second half.

• The company is cautious about the construction cycle recovery, with expectations of flattish to slightly positive volumes in 2025, indicating potential challenges in achieving significant growth.