Compagnie de Saint-Gobain (LON:COD) reported first-half 2026 organic sales growth of 0.7%, supported by a stronger second quarter in which like-for-like sales rose 3.5% across all regions. The building materials group said it generated a 15.4% EBITDA margin, recurring net income of €1.7 billion and €2.1 billion of free cash flow.
Benoit said the company’s “Lead and Grow” strategy was gaining traction through the expansion of its solutions portfolio into non-residential and infrastructure markets. He highlighted projects including a medical center in Brazil and an airport in Singapore, where Saint-Gobain initially entered through waterproofing specifications and subsequently supplied 12 additional solutions.
Second-quarter growth accelerates
Chief Financial Officer Maud Thuaudet said the group’s 0.7% first-half organic growth was driven by the second-quarter rebound. Asia-Pacific delivered 7% like-for-like growth in the quarter, Europe returned to growth with a 4% increase, and the Americas posted positive organic growth.
Prices rose 0.8% in the first half, following flat pricing in the first quarter and a 1.6% increase in the second quarter. Thuaudet said the company implemented price increases and transportation surcharges as its cost environment became more inflationary.
Saint-Gobain expects mid-single-digit inflation across its €12 billion raw-materials, transportation and energy cost base in 2026, though Thuaudet described the outlook as volatile amid changing conditions in the Middle East. The company maintained its expectation for a slight positive price-cost spread for the full year.
The group’s energy bill represents less than 4% of sales and is split approximately evenly between gas and electricity, according to Thuaudet. Saint-Gobain said it was more than 75% hedged for 2026.
Foreign exchange reduced first-half sales by 1.3%, including an approximate 6% impact in North America and Asia. The currency effect turned slightly positive in the second quarter.
Regional performance
Europe posted 1.7% like-for-like sales growth in the first half, driven by 4.1% growth in the second quarter, its strongest quarterly increase in the region since 2022. Northern Europe grew 3.7% in the quarter, with Germany returning to growth and double-digit expansion in Poland and the Czech Republic. The U.K. remained softer than other markets.
Southern Europe, the Middle East and Africa grew 4.5% organically in the second quarter, aided by new construction, industrial solutions and market-share gains. Benoit and Thuaudet pointed to double-digit growth in the Middle East, including Turkey, while France, Spain and Italy also contributed to growth.
In North America, second-quarter organic growth reached 1.2% as weather conditions normalized after a difficult first quarter. Roofing, plasterboard, siding and construction chemicals drove volumes, although new construction remained weak. Construction chemicals grew at a double-digit rate in the region.
Latin America declined 1.3% organically in the first half, reflecting a high comparison base and lower pricing earlier in the year. In Brazil, Saint-Gobain said it continued to gain share in light construction and construction chemicals despite a soft new-construction market. The Americas’ EBITDA margin was 19.5%, stable compared with the second half of 2025.
Asia-Pacific grew 7% organically and 8.4% in local currencies in the first half. India recorded double-digit growth and additional market-share gains, while Vietnam, Indonesia and the Philippines also expanded at double-digit rates. China continued its growth trend seen since the second half of 2025. The region’s EBITDA margin reached a record 18.5%.
Cash generation and portfolio actions
Free cash flow totaled €2.1 billion, equivalent to 65% of EBITDA and 125% of recurring net income. Operating working capital stood at 24 days of sales at the end of June. Saint-Gobain expects capital expenditure of about €2 billion for the full year.
The company’s net debt ratio was 1.6 times, while return on capital employed reached 13.5% in local currencies during the first half. Saint-Gobain returned €1.4 billion to shareholders, including €292 million in share repurchases.
Saint-Gobain announced or completed 23 acquisitions and divestments during the first half, rotating nearly €3 billion of sales. The transactions represented roughly one-third of its target to rotate more than 20% of sales by 2030. Thuaudet said the portfolio moves should be accretive to margins by 40 to 50 basis points on a full-year basis.
About 90% of gross capital expenditure and M&A investment was directed toward high-growth markets. The company cited acquisitions including Xypex in North America, AGC Polymer Materials in Japan and Norteños de Europa in the Dominican Republic. Benoit said Saint-Gobain has no specific plan to divest its Autoglass business, describing it as integrated with the group’s wider glass activities and strategy.
Outlook and growth priorities
Saint-Gobain expects like-for-like sales growth in the second half across Europe, the Americas and Asia-Pacific, although management said country-level conditions would remain uneven. The company expects Europe to benefit from improving new-construction activity in several markets, while it remains cautious about North American residential construction. Any significant weather activity during the U.S. hurricane season could provide an upside for roofing demand, management said, but it has not included such an effect in its forecasts.
The group reiterated its target for an EBITDA margin above 15% in 2026. In the Americas, management expects second-half margins to be broadly similar to the prior-year period, or potentially slightly lower, amid continued inflation and uncertainty.
Benoit said Saint-Gobain is prioritizing construction chemicals, non-residential and infrastructure markets, as well as North America, Asia and emerging economies. The company also said it is deploying artificial intelligence tools across distribution, sales, research and manufacturing, with the primary aim of supporting growth, customer service and faster product development rather than solely reducing costs.
About Compagnie de Saint-Gobain (LON:COD)
Compagnie de Saint-Gobain SA designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands.
