Saint-Gobain: Revenue stable at €23.6 billion in H1, EBITDA margin declining to 15.4%
Saint-Gobain reported first-half 2026 revenue of €23.6 billion, down 1.1% in nominal terms but stable on a comparable basis (+0.7%). Internal growth accelerated in the second quarter to +3.5%, driven by a recovery in Europe (+4.1%), normalization in North America (+1.2%) and continued growth in Asia-Pacific (+7.0%). However, EBITDA margin declined to 15.4% (versus 16.0% a year earlier) and net income fell 13.0%, reflecting compression in unit profitability despite better cash-flow management.
The group maintains its guidance for an EBITDA margin above 15.0% in 2026, expecting improvement in the second half. Liquidity has increased and net debt has reduced significantly to €11.5 billion, strengthening the builder's financial profile in a contrasting macroeconomic environment.
Growth rebound in Q2, but net income declines
The group posted first-half revenue of €23.595 billion, nearly stable on a comparable basis (+0.7%) following a first quarter affected by difficult weather conditions. This stability masks an acceleration in momentum in the second quarter, where internal growth reached +3.5%, marking a clear recovery across the three major regions.
EBITDA came in at €3.625 billion, down 5.1% in absolute terms, with margin compressed to 15.4% versus 16.0% a year earlier. Operating profit fell 7.5% to €2.594 billion and net income declined 13.0% to €1.417 billion. Earnings per share (EPS) stood at €2.89, down 12.2% compared to H1 2025 (€3.29), reflecting a significant deterioration in unit profitability despite slight revenue growth on a comparable basis.
This margin compression occurs in an environment where currency effects weigh −1.3% on the half-year and disposals (perimeter effect of −0.5%) mechanically reduce aggregates. On the price-cost side, the group anticipates a slight positive differential over the year but must manage resurging inflation in Q2.
Asia drives outperformance, Europe and Americas recover
The Asia-Pacific region confirms its momentum with internal growth of +7.0% (+8.4% in local currencies), driven by India growing in double digits and Southeast Asia (Vietnam, Indonesia, Philippines) posting robust progress. EBITDA margin there reaches a record level of 18.5%, versus 18.0% a year earlier, reflecting effective price and cost management.
In Europe, growth resumed after a difficult start to the year, with activity advancing +1.7% over the half-year but +4.1% in the second quarter alone, the best performance since 2022. EBITDA margin remained stable at 13.0% despite first-quarter weather conditions. The Americas also rebounded in Q2 (+0.9% internal growth) after a Q1 impacted by extreme weather conditions in North America (−11.3% in Q1). EBITDA margin for the region stood at 19.5%, in line with the comparison basis for the second half of 2025 but below H1 2025 (21.4%), on a high comparison base.
The group notes that construction chemistry outperformed at +8.5% in Q2 and +5.3% over the half-year, supported by notable successes in non-residential (data centers, healthcare, infrastructure) and infrastructure (tunnels, bridges, airports).
Robust cash-flow and rapid debt reduction
Despite net income contraction, free cash-flow stood at €2.105 billion (slight decline of 3.9% year-on-year), with conversion rate improving to 65% (versus 63% a year earlier). Working capital requirements remain controlled at 24 days of revenue. Industrial investments totaled €664 million, including 14 new plants and production lines opened during the half-year, primarily in high-growth regions (India, Vietnam, Indonesia, Eastern Europe, Central America).
Net debt recorded a significant reduction of 9.9% to €11.5 billion, driven by free cash-flow generation and disposals (€373 million, including the sale of ventilation distribution in Nordic countries). The net debt to twelve-month rolling EBITDA ratio reached 1.6x (versus 1.7x a year earlier). The group continued share buybacks totaling €270 million by end of June, bringing the total to €292 million including July, confirming capital returns to shareholders despite a mixed profitability context.
