Sika Earnings: Solid Performance Boosted by North America Infrastructure and Reshoring Projects

We maintain our CHF 230 fair value estimate for narrow-moat Sika following its solid 9-month results. Revenue increased 9% year over year in local currencies, of which 8% is attributable to acquisitions. We’re pleased to see positive momentum in organic revenue growth, which accelerated to 2% during the third quarter despite challenging end markets and is tracking our full-year estimate. In North America organic sales growth exceeded 4% in the third quarter, driven by North American infrastructure and reshoring projects and is materially higher than what Holcim reported for the region. Full-year sales guidance of between 6% and 9% in local currencies was maintained, which suggests a strong end to 2024 is expected.