Company Reports

Saint-Gobain reported 0.7% like-for-like sales growth, while the EBITDA margin declined by 60 basis points to 15.4% Accelerating volume growth in the second quarter and successful pricing increases supported resilient performance. Management reaffirmed guidance.

Saint-Gobain manufactures and distributes a wide range of building materials, specializing in insulation, roofing, and glass, which are predominantly sold to the construction sector. Many of Saint-Gobain's brands are among the leaders in their product categories, which could provide some brand recognition, but not meaningful enough to provide maintainable pricing power given that many suppliers offer similar products. From a cost perspective, most of its products cannot travel long distances economically, creating regional markets and offering little benefit to Saint-Gobain’s global presence.

Saint-Gobain posted a 2.3% decline in like-for-like sales year over year to EUR 11.1 billion, comfortably exceeding the company-compiled estimate of EUR 10.9 billion. The decline in sales was largely due to lower demand for roofing products in North America against a tough comparable.

Saint-Gobain manufactures and distributes a wide range of building materials, specializing in insulation, roofing, and glass, which are predominantly sold to the construction sector. Many of Saint-Gobain's brands are among the leaders in their product categories, which could provide some brand recognition, but not meaningful enough to provide maintainable pricing power given that many suppliers offer similar products. From a cost perspective, most of its products cannot travel long distances economically, creating regional markets and offering little benefit to Saint-Gobain’s global presence.

Saint-Gobain reported a 3.6% decline in recurring earnings per share during fiscal 2025, driven by a slight decline in organic revenue and adverse currency movements. Full-year 2026 guidance is for the EBITDA margin to be above 15.0%, compared with 15.5% achieved in fiscal 2025.

Saint-Gobain manufactures and distributes a wide range of building materials, specializing in insulation, roofing, and glass, which are predominantly sold to the construction sector. Many of Saint-Gobain's brands are among the leaders in their product categories, which could provide some brand recognition, but not meaningful enough to provide maintainable pricing power given that many suppliers offer similar products. From a cost perspective, most of its products cannot travel long distances economically, creating regional markets and offering little benefit to Saint-Gobain’s global presence.

Saint-Gobain reported a 0.2% decline in organic sales growth during the third quarter. Acquisitions added another 1.5% to revenue, but were more than offset by unfavorable currency movements. No quarterly profit figures were provided.

Saint-Gobain reported 1.7% revenue growth during the first half, slightly below FactSet consensus. Organic revenue declined by 0.5%, reflecting underperformance relative to peers. Sika, Holcim, and Heidelberg Materials each reported 1% organic revenue growth during the same period.

Saint-Gobain manufactures and distributes a wide range of building materials, specializing in insulation, roofing, and glass. Many of Saint-Gobain's brands are among the leaders in their product category which could provide some brand recognition, but not meaningful enough to provide maintainable pricing power given many suppliers offering similar products. From a cost perspective, most of its products cannot travel long distances economically, creating regional markets and offer little benefit to Saint-Gobain’s global presence.

Saint-Gobain reported 3.2% sales growth for first-quarter 2025, which was largely driven by acquisitions in construction chemicals where the firm is expanding its presence. Sales outpaced FactSet-compiled consensus, resulting in a roughly 4% rise in the share price at the market open on April 25.

Saint-Gobain reported a 3% increase in its adjusted EPS during fiscal 2024, comfortably exceeding FactSet consensus by 10%.

Saint-Gobain manufactures and distributes a wide range of building materials, many of which are not entirely synergistic. We cannot fault its strategy of streamlining the company and divesting from businesses where it has not achieved the required scale geographically to compete profitably. Many of the group’s wide range of products are unable to travel long distances, which make markets very regional and provide minimal benefits to being a global player. The group’s strategy of being a one-stop shop for customers by selling a wide range of construction products is a common theme across the industry and is unlikely to provide a durable competitive advantage.

Saint-Gobain manufactures and distributes a wide range of building materials, many of which are not entirely synergistic. We cannot fault its strategy of streamlining the company and divesting from businesses where it has not achieved the required scale geographically to compete profitably. Many of the group’s wide range of products don't tend to travel long distances, which tend to make markets very regional and provide minimal benefits to being a global player. The group’s strategy of being a one-stop shop for customers by selling a wide range of construction products is a common theme across the industry and is unlikely to provide a durable competitive advantage.

No-moat Saint-Gobain delivered a 2% decline in organic sales during the third quarter, underperforming Holcim and Sika. Reported sales were flat, benefiting from a 3% contribution from the completion of its EUR 2.7 billion acquisition of CSR, but still narrowly missing FactSet consensus for the quarter. We’re raising our fair value estimate by 7% to EUR 73 to incorporate the impact of Saint-Gobain’s latest acquisitions of CSR and Fosroc, which have improved its top-line and operating margin outlook.

No-moat Saint-Gobain reported a 2% decline in operating profit, despite improving its operating margin by 40 basis points to a record 11.7% during the first half of 2024. Its record profitability should not come as a surprise to investors as its improved product portfolio achieved via astute capital allocation, supports structurally higher margins for the group. Declining raw material and energy costs have also helped ease the pain of falling sales for the group, largely attributable to weak construction demand in Europe. We reiterate our EUR 68 fair value estimate and view shares as fairly valued.

Saint-Gobain manufactures and distributes a wide range of building materials, many of which are not entirely synergistic. We cannot fault its strategy of streamlining the company and divesting from businesses where it has not achieved the required scale geographically to compete profitably. Many of the group’s wide range of products don't tend to travel long distances, which tend to make markets very regional and provide minimal benefits to being a global player. The group’s strategy of being a one-stop shop for customers by selling a wide range of construction products is a common theme across the industry and is unlikely to provide a durable competitive advantage.

No-moat Saint-Gobain continued its trend of declining sales, falling 6% on an organic basis during the first quarter. A 1% decrease in selling prices is a concern, and while its price/cost spread remained positive during the quarter, we expect it may eat into its record operating margin achieved during fiscal 2023. During the past two years, price increases for its products have been able to somewhat offset lower demand from a weak construction sector, particularly in Europe, in response to higher interest rates. We attribute the underperformance, compared with narrow-moat Sika and narrow-moat Holcim, which have both reported flat sales growth during their first quarter, to Saint-Gobain’s greater geographic exposure to Europe and its products being more commoditized in nature. We maintain our EUR 68 fair value estimate and view shares as fairly valued.

No-moat Saint-Gobain reported a 1% decline in organic revenue during fiscal 2023, broadly in line with our expectations. The group enters fiscal 2024 with weak momentum as volumes show no signs of improving, declining 5% during the fourth quarter. The group failed to provide much guidance, but anticipates its double-digit operating margin will be maintained, which we believe is certainly attainable. Shares are trading in line with our EUR 68 fair value estimate, which we maintain.

Saint-Gobain has entered into a definitive agreement to acquire CSR, a building products producer in Australia, for an enterprise value of AUD 4.5 billion (EUR 2.7 billion). We believe the likelihood of CSR shareholders accepting the offer is high given the 33% premium, above the one-month volume-weighted average price and 13% premium to our stand-alone AUD 8 fair value estimate for CSR, prior to the announcement. The acquisition is consistent with Saint-Gobain's strategy to be the leader in light construction materials, which are more energy-efficient and easier to install than traditional building materials. The deal will also bolster its geographic presence outside of Europe where the outlook for construction activity remains weak. We maintain our no moat rating and EUR 68 fair value estimate.

Saint-Gobain manufactures and distributes a wide range of building materials, many of which are not entirely synergistic. We cannot fault its strategy of streamlining the company and divesting from businesses where it has not achieved the required scale geographically to compete profitably. Many of the group’s wide range of products don't tend to travel long distances, which tend to make markets very regional and provide minimal benefits to being a global player. The group’s strategy of being a one-stop shop for customers by selling a wide range of construction products is a common theme across the industry and is unlikely to provide a durable competitive advantage.