Sika: sustainability first

Last week, Sika presented its vision for the future of the construction industry. It is above all a vision of sustainability and circularity, which will favor Sika’s innovative products. New regulations on CO2 reduction require new buildings to be increasingly capable of generating their energy from renewable sources.

From a financial point of view, unfortunately the company does not expect to achieve an EBITDA margin of over 20% in 2024, which disappointed investors. Nevertheless, the company is targeting an EBITDA margin of between 20% and 23% by 2028, which would correspond to EBITDA growth of between 6% and 9% in local currencies. This compares with the 13.3% annual growth (again in local currencies) that Sika achieved between 2018 and 2023. This notable slowdown is also a disappointment for the financial market but can be understood by the size effect. Indeed, Sika has just absorbed its biggest acquisition (MBCC) and thus finds itself the biggest player in the construction chemical ingredients sector, with an overall market share of 11%.