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INVESTMENT IN FURTHER GROWTH IN ALL REGIONS
In the first quarter, Sika generated local currency growth in EMEA and Americas and gained market share in all regions. Investments were made in all regions in the acquisition of small and medium-sized enterprises and in the expansion of production facilities for future growth.

In the first three months of 2025, sales in the EMEA region (Europe, Middle East, Africa) increased by 0.7% in local currencies (previous year: 22.4%). Conditions remain very challenging in the European construction markets. Compared to the same period last year, the region also had one working day less. Overall, Sika achieved a significant increase in sales in the countries in the Middle East and Africa. With its strong sales organization, Sika Germany is very well positioned to benefit from the infrastructure package approved by the German government for which around EUR 500 billion will be invested in modernizing and expanding infrastructure over a period of 10 years.

The automotive and industrial sectors are still experiencing a downturn in the EMEA region. This is due to the falling production figures for new vehicles owing to persistently weak demand in Europe.

Sika has invested in future growth in Europe. In the first quarter it acquired Cromar Building Products, a well-known provider of roofing systems in the UK. Cromar supplies its customers mainly via the distribution channel. With the acquisition Sika is developing substantial cross-selling potential and is targeting expansion in the roofing sector in the UK.

Moreover, Sika has commissioned a new production facility in Ust-Kamenogorsk with production lines for mortar and concrete admixtures and a modern laboratory. The plant is Sika’s fourth factory in Kazakhstan and is situated in an economically important industrial region in the eastern part of the country.

In local currency terms, the Americas region achieved a 4.9% increase in sales (previous year: 21.1%). After a good start to the current financial year, the last month of the quarter saw the market unsettled by mixed signals in terms of US trade policy. Consequently, growth for Sika has slowed in North America, whereas last year's growth momentum in Latin America has continued. One positive effect comes from state-supported infrastructure projects in the US and commercial construction projects that are being implemented as part of the drive to relocate production in the USA. Thanks to Sika’s local presence – almost 100% of all products and solutions sold in the USA are produced in the country – and its strong leading position in the renovation market, Sika outperformed the market as a whole.

In the first quarter, Sika acquired HPS North America, Inc., a successful provider of materials for building finishing. The complete integration into Sika USA creates a strong platform for further expansion in the Building Finishing segment and facilitates considerable efficiency gains. Furthermore, investments were made in the expansion of the supply chain in Ecuador. By opening a new factory in Quito, Sika is reinforcing its presence and customer proximity in the country. The strategic investment enables Sika to leverage the full market potential of Ecuador for its mortar solutions in the field of interior walls, insulation, and tile adhesives.

In Asia/Pacific, sales in the first three months of the current financial year have remained stable (previous year: 14.1% growth). Sika’s sequential growth in the region has thus improved. Southeast Asia and the Automotive & Industry business posted strong growth where Sika was able to further increase the share of its technologies in vehicles of local and international manufacturers. Japan and India, two of the largest countries in the region, also contributed to the growth. China, the region's biggest country, experienced a continued downturn in the first quarter.

Sika also invested in Asia/Pacific and acquired Elmich Pte Ltd, a Singapore-based company and a leading provider of green roofs and spaces for urban areas. With this move, Sika is expanding its regional offering of roofing systems and is also strengthening the specifications business in the region. In addition, Sika opened two state-of-the-art production facilities in Singapore and Xi’an, in the northwest of China. Whereas the new plant in Singapore will specialize in mortar production, the facility in Xi’an will produce tile adhesives, cementitious waterproofing, and flooring solutions.

OUTLOOK
Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts. Especially in a protectionist market environment, Sika's long-standing investments in a “local for local” strategy should pay off and drive resilient results.

For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company is anticipating an over-proportional increase in EBITDA and an EBITDA margin in the range of 19.5%-19.8%.

Sika is also confirming its 2028 strategic medium-term targets for sustainable, profitable growth.

NET SALES IN THE FIRST THREE MONTHS OF 2025

FINANCIAL CALENDAR

SIKA CORPORATE PROFILE
Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industry. Sika has subsidiaries in 102 countries around the world, produces in over 400 factories, and develops innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation industries toward greater environmental compatibility. Its 34,000 or so employees generated annual sales of CHF 11.76 billion in 2024.

CONTACT
Dominik Slappnig
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com

The media release can be downloaded from the following link:
Media Release