Sika AG

Ad Hoc announcement pursuant to Article 53 of the Listing Rules of the SIX Exchange Regulation

SIKA ACHIEVES GLOBAL GROWTH OF 1.6% IN LOCAL CURRENCIES AND EXPANDS ITS PROFIT MARGIN

Sales of CHF 5,676.4 million (previous year: CHF 5,834.8 million) in first half of the year  1.6% sales increase in local currencies, with 0.6% attributable to organic growth and 1.0% to acquisition effect Weaker US dollar predominantly responsible for high foreign currency impact of -4.3% Material margin at a consistently high level of 55.1% (previous year: 55.1%) EBITDA margin increased to 18.9% (previous year: 18.7%), supported by strong synergy momentum; raised MBCC synergy targets for 2025 and 2026 by CHF 20 million Targeted investments in future growth:

Strategic acquisition of Elmich (Singapore), Cromar (UK), HPS (USA), and 
Gulf Additive (Qatar) Global production capacity expanded with new factories in Singapore, Xi’an and Suzhou (China), Quito (Ecuador), Ust-Kamenogorsk (Kazakhstan), Belo Horizonte (Brazil), and Agadir (Morocco) Outlook for the 2025 business year:

Amid uncertain market development, Sika will continue to grow above the market and is focusing on margin improvement  Modest sales increase in local currencies expected for the full year Over-proportional EBITDA increase and EBITDA margin of between 19.5% and 19.8%  Strategic medium-term targets for sustainable, profitable growth confirmed for 2028

Despite a challenging economic environment, Sika continued to grow in local currencies in the first half of 2025, achieving a year-over-year increase in its profit margin at EBITDA level. However, the weaker US dollar, which lost 10% against the Swiss franc in the second quarter, as well as ongoing uncertainties on the global markets, had an impact on the results.

Thomas Hasler, CEO: “In a challenging market environment, we once again outpaced the industry trend and continued to gain market share. Our position is especially strong in the project and infrastructure sector, which encompasses forward-looking and high-growth segments. This includes the global expansion of building structures related to artificial intelligence and digital infrastructure. With more than 1,000 data centers built using our technologies to date and a strong project pipeline, Sika has established itself as a preferred partner to technology leaders. Together with our customers around the world, we shape the digital infrastructure of the future.”

INCREASE IN EBITDA MARGIN AND RAISED TARGETS FOR MBCC SYNERGIES
Sika increased its sales in local currencies by 1.6% in the first half of 2025. The foreign currency effect amounted to -4.3%, primarily due to the weakness of the US dollar. As a result, Sika generated sales in Swiss francs of CHF 5.68 billion (previous year: CHF 5.83 billion). In a contracting overall market, Sika managed to achieve positive organic growth of 0.6%.

繼續閱讀

At 55.1%, the material margin was kept at a consistently high level (previous year: 55.1%). The EBITDA margin increased to 18.9% (previous year: 18.7%) against the backdrop of stable input costs, additional efficiency gains, and strong synergy momentum. The MBCC synergy targets were raised by CHF 20 million (new target 2025: CHF 160-180 million, new target 2026: CHF 200-220 million). Operating profit before depreciation and amortization (EBITDA) reached CHF 1,070.4 million in the first half of the year, down slightly compared to the previous year due to strong foreign currency effects.

In line with the multi-year average, but lower than the exceptionally high previous year, Sika's operating free cash flow came in at CHF 181.9 million (previous year: CHF 401.3 million). The reduction is due to an increase in net working capital and unfavorable currency development as well as higher investments in future growth. The majority of operating free cash flow is generated in the second half of the year and will be supported by Group-wide net working capital initiatives.

INVESTMENTS DRIVING FURTHER GROWTH
Sika made targeted investments in the first half of 2025 to strengthen its global market position, acquiring four companies and commissioning seven new plants. With more than 400 production sites in 102 countries, the company has an extensive global manufacturing network, producing its cutting-edge technologies locally. Sika is therefore largely unaffected by trade tariffs and can reliably supply its customers, even in challenging market conditions.

All regions outperformed their markets. Investments were made around the world – both in bolt-on acquisitions and in the expansion of production capacities to support future growth. One strategically important step was the minority stake in Giatec™ Scientific Inc., a Canada-based global leader in digital concrete technologies. Specializing in smart testing methods and AI-powered solutions, Giatec develops innovative sensors, software solutions, and data analytics tools to optimize concrete quality, durability, and sustainability – from production and transportation to placement at the construction site plus the later monitoring of the structures.

GLOBAL MARKET SHARE GAINS AND SLIGHT RECOVERY IN EMEA
The first half of the year showed a slight recovery in the construction markets of the largest region, EMEA (Europe, Middle East, Africa), with growth of 3.1% in local currencies in the second quarter (first quarter: 0.7%). For the whole reporting period, sales growth in local currencies amounted to 1.9% (previous year: 13.5%). Sika recorded significant double-digit sales increases in the Middle East and Africa. Construction markets are also showing the first signs of a recovery in Eastern Europe. In Germany, Sika’s strong sales organization is perfectly positioned to benefit from the government’s recently approved infrastructure program. This package provides for EUR 500 billion to be invested in the modernization and expansion of the national infrastructure over a ten-year period.

Sales in the Americas region increased by 3.5% in local currencies (previous year: 15.1%). After a good start to the fiscal year, the mixed signals in US trade policy unsettled many market participants, which also somewhat slowed the market momentum. While this caused Sika’s growth in the USA and Mexico to weaken, the positive growth momentum of the previous year continued in Latin America. Investments in data centers and government-subsidized infrastructure and commercial construction projects supported the development of the US construction market. Thanks to Sika’s local presence – with nearly 100% of its products and solutions sold in the US also manufactured in-country – and its market leadership in the renovation segment, Sika succeeded in outperforming the overall market in this challenging environment.

Local currency sales in the Asia/Pacific region declined slightly by -1.7% in the first half of the year (previous year: 8.0%). This result is mainly attributable to the challenging, deflationary market environment in the Chinese construction sector, for which Sika is focusing on protecting its margins and driving efficiencies. Excluding the negative development in China, Sika would have achieved positive low-single-digit growth in the region. Market development for Sika was particularly dynamic in India and Southeast Asia as well as in the Automotive & Industry segment, where the company was able to further expand the share of its technologies in vehicles from both local and international manufacturers.

OUTLOOK 
Amid uncertain market development, arising in particular as a result of ongoing trade conflicts, Sika will continue to grow above the market and focus on margin improvement. For the 2025 business year, Sika expects a modest sales increase in local currencies. The company continues to expect an over-proportional increase in EBITDA and an EBITDA margin of between 19.5% and 19.8%.

Sika is confirming its strategic medium-term targets for 2028 for sustainable, profitable growth.

KEY FIGURES FIRST HALF OF 2025

in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change in %  Net sales 5,834.8 5,676.4 -2.7 Gross result 3,217.6 3,129.1 -2.8 Operating profit before depreciation (EBITDA) 1,092.9 1,070.4 -2.1 Operating profit (EBIT) 822.2 798.1 -2.9 Profit after taxes 577.1 554.4 -3.9 Basic earnings per share (in CHF) 3.59 3.45 -3.9 Diluted earnings per share (in CHF) 3.59 3.45 -3.9 Operating free cash flow 401.3 181.9 -54.7  Balance sheet total1 15,977.2 15,393.3  Shareholders’ equity1 7,046.8 6,186.1  Equity ratio in %1,2 44.1 40.2  Return on capital employed (ROCE)
in %3 13.4 13.5  1 As of December 31, 2024 / June 30, 2025. 2 Shareholders’ equity divided by balance sheet total. 3 Capital employed = current assets, PPE, intangible assets less cash and cash equivalents, current securities, current liabilities (excluding bank loans and bonds).

NET SALES BY REGION

in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change compared to previous year
(+/- in %) In Swiss francs  In local currencies Currency
impact Acquisition
effect By region  EMEA 2,565.3 2,527.7 -1.5 1.9 -3.4 0.5 Americas 2,045.1 1,984.4 -3.0 3.5 -6.5 2.2 Asia/Pacific 1,224.4 1,164.3 -4.9 -1.7 -3.2 0.4 Net sales 5,834.8 5,676.4 -2.7 1.6 -4.3 1.0 Products for construction industry 4,949.6 4,821.7 -2.6 1.9 -4.5 1.2 Products for industrial manufacturing 885.2 854.7 -3.4 0.3 -3.7 0.0

Webcast on July 29, 2025, at 3:00 p.m. (CEST)  A webcast will be held today in connection with the publication of the half-year results.  www.sika.com/hy-webcast   Click this link to join the webcast with Thomas Hasler (CEO), Adrian Widmer (CFO), Dominik Slappnig (Head Corporate Communications & IR), and Christine Kukan (Head Investor Relations).  A recording of the webcast will be made available on the Sika website in the “Investors” area.

FINANCIAL CALENDAR  Result first nine months 2025 Friday, October 24, 2025 Net sales 2025 Tuesday, January 13, 2026 Media conference / analyst presentation
on full-year results 2025 Friday, February 20, 2026 58th Annual General Meeting Tuesday, March 24, 2026 Net sales first quarter 2026 Tuesday, April 14, 2026 Half-year report 2026 Tuesday, July 28, 2026

SIKA CORPORATE PROFILE
Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industrial manufacturing. Sika has subsidiaries in 102 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation sector toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.76 billion in 2024.

CONTACT
Dominik Slappnig
Corporate Communications &
Investor Relations
+41 58 436 68 21
[email protected]

The media release can be downloaded from the following link:
Media Release

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