Compagnie de Saint-Gobain (LON:COD) reported third-quarter 2026 like-for-like sales growth of 2.5%, with pricing as the principal driver amid a more inflationary environment and continued geopolitical uncertainty. The group said all regions recorded organic growth, while Construction Chemicals outperformed with like-for-like growth of 6.3%.
Chairman and CEO Benoit Bazin said the company’s strategy is increasingly focused on value rather than volume, including higher-value products, specified sales and cross-selling across its solutions portfolio. He said the prolonged Middle East conflict had contributed to a greater pricing contribution to sales growth during the quarter.
“The longer the war in the Middle East lasted, the more the like-for-like would be driven by price,” Bazin said. “This is indeed what we saw in Q3 with pricing driving the like-for-like, demonstrating our strong pricing power.”
Pricing, Costs and Full-Year Outlook
CFO Maud Thuaudet said prices increased in every region, supported by commercial initiatives and the mix shift toward higher-value products. Saint-Gobain delivered a 3.2% price increase in the third quarter and expects a neutral to slightly positive price-cost spread for the full year.
The company expects 2026 inflation to land at the high end of a mid-single-digit range on its approximately €12 billion raw-materials, energy and transportation cost base. Thuaudet pointed to accelerating inflation since September, particularly in U.S. transportation costs.
Saint-Gobain said energy represents less than 4% of group sales, with gas accounting for less than 2%. The company said it is hedged for more than 75% of its 2026 energy needs and more than 70% for 2027, with higher coverage for the upcoming winter season.
The company reaffirmed its full-year guidance, including an expected EBITDA margin above 15% in 2026. Bazin said the group expects like-for-like sales growth in the second half, although he later told analysts that fourth-quarter like-for-like growth is expected to remain positive but be softer than the third quarter.
For 2027, Thuaudet said the company has an “embarked” price effect of nearly 1.5%, which would place Saint-Gobain in a good position to offset inflation if cost inflation again reaches the mid-single-digit range. She added that transportation is the principal category in which surcharges are used, while most pricing actions are structural.
Regional Performance
- Europe: Like-for-like sales rose 2.5%. Northern Europe grew 3.4%, with double-digit growth in Poland and the Czech Republic. Germany posted slight growth, aided by non-residential renovation and infrastructure demand. Southern Europe grew 1.6%, as Italy and Spain increased slightly and France recorded slight growth in a cautious renovation market.
- Americas: Sales increased 0.6% on a like-for-like basis. North America grew 2%, supported by both price and volume gains, while Latin America declined 3% amid volatile markets and caution ahead of Brazil’s presidential election.
- Asia-Pacific: Like-for-like sales grew 8%, led by double-digit growth in India and continued growth in Southeast Asia. Australia recorded slight growth, while China posted modest growth despite a declining underlying market, according to the company.
In North America, Bazin said Saint-Gobain outperformed in roofing, siding and plasterboard despite weaker new residential construction, limited major weather events and continued weakness in industrial solutions. The company attributed part of the performance to differentiated products, non-residential exposure in interior solutions and its Canadian operations.
However, Bazin said Americas EBITDA margin in the second half is expected to be below the prior-year period, reflecting inflation, weaker recent new-construction conditions and lower weather-related demand than in the second half of 2025. He said the group is taking cost and productivity actions in both Europe and North America.
Construction Chemicals, Portfolio Moves and AI
Construction Chemicals remained a central growth area, posting high-single-digit or better growth across several markets. Bazin said recent acquisitions in the segment, including Xypex and D.S. Brown in the U.S., carry EBITDA margins above the group average and support expansion into infrastructure and non-residential applications.
The company said it has announced €3.3 billion in acquisitions and divestments year to date, advancing its target to rotate more than 20% of sales in its portfolio by 2030. The announced transactions include 11 divestments and 17 acquisitions. The sale of Nordic specialist distributor Dahl is expected to close on Nov. 2.
Thuaudet said the impact of Dahl’s divestment on 2026 margins will be limited because it will affect only two months of the year. On a full-year basis, she said the portfolio rotation announced during 2026 is expected to provide 40 to 50 basis points of margin support.
The group also appointed Annica Hagen as chief AI officer and added her to the executive committee. Bazin said the role will coordinate and scale artificial-intelligence projects across commercial operations, quote responses, research and development, manufacturing and business processes.
Examples cited included an AI-powered customer recommendation tool in India and AI-based power-control systems in plasterboard production, initially at a pilot site in Spain. The company said the Spanish project could add about 1.5 production days per line annually.
Focus on Infrastructure and Climate Adaptation
Bazin said Saint-Gobain is pursuing opportunities in non-residential and infrastructure projects, including data centers, transportation and energy-related construction. The company is active in more than 200 data-center projects in Northern Europe and cited recent project wins including a green-energy complex in India and the Izmit Metro in Turkey.
The company also sees long-term demand opportunities from climate adaptation. Thuaudet said heatwaves had a slightly negative effect on third-quarter activity in France, but management said hotter conditions could support future demand for insulation, solar-control glass and other products designed to improve summer comfort in buildings.
“We have a lot under our control,” Bazin said, citing the solutions strategy, infrastructure expansion, cost management and portfolio rotation as priorities as the company navigates an uncertain macroeconomic and geopolitical environment.
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.
