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Sika Cuts 2025 Earnings Outlook Amid Sales Woes
15 Jan
Summary
- Sika lowered its 2025 earnings margin guidance to just above 19%.
- Preliminary 2025 sales reached 11.20 billion Swiss francs, down from prior year.
- Company launches investment program targeting significant annual savings by 2028.
Sika, the Swiss chemicals company, has reduced its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin forecast for 2025 to slightly above 19%, a downward revision from its prior target of 19.5% to 19.8%. This adjustment is attributed to softer sales performance in the final quarter of the previous year and negative currency impacts.
Preliminary sales figures for 2025 indicate a slight decrease to 11.20 billion Swiss francs, with a modest 0.6% growth in local currencies. Regional sales performance showed a slowdown across Europe, the Middle East, and Africa, and the Americas, while the Asia Pacific region experienced a sales decline.
In response to the current market conditions, Sika is launching a new investment and efficiency program. This initiative aims to achieve significant cost savings, with targeted annual savings between 150 million and 200 million Swiss francs by 2028. The company anticipates global market conditions to remain subdued through the first half of 2026.
