Saint-Gobain's sales decline 2.9% YoY in FY 2024

2025-03-01

Mar. 1, 2025 - Sales of Saint-Gobain were robust, at €46.6 billion as reported, down 2.2% at constant exchange rates over the year, with a return to growth in the second half, supported by acquisitions and the sequential improvement in organic growth. The currency effect was a negative 0.7% on sales for the year, and a negative 1.1% in the second half. 

Changes in Group structure had a positive 1.4% impact on sales in the year and a positive 3.9% impact in the second half, benefiting mainly from recent acquisitions in Asia-Pacific (CSR in Australia), North America (Bailey and Building Products of Canada) and construction chemicals, even before the integration of Cemix (mid-January 2025) and FOSROC (during February 2025). The optimization of the Group’s profile also continued with the effect of divestments, particularly in distribution (UK), pipe with the sale of the drainage business for buildings (PAM Building), glass processing activities, foam insulation (UK) and railing and decking (US). 

On a like-for-like basis, sales were down 3.6% over the year, with as expected a clear sequential improvement between the first half (down 4.9%) and the second (down 2.3%). Activity remained stable or increased in the second half in all segments excluding Europe, where new construction markets remained difficult, notably in France. 

Group prices were down 0.6% over the year and down 0.3% in the second half, generating a positive price-cost spread over the year and a slightly positive spread in the second half, thanks to disciplined execution and the reduction in certain raw material and energy costs in 2024. Volumes were down 3.0% over the year, with a sequential improvement between the first half (down 3.9%) and the second (down 2.0%), in line with the Group’s expectations for the year. 

Operating income was €5,304 million, representing a new record high at constant exchange rates (2023 exchange rates). The operating margin also hit a new all-time high of 11.4% in 2024 (versus 11.0% in 2023). Despite a difficult environment in Europe, all segments reported either an increasing or stable operating margin, reflecting the strength of the Group’s strategic positioning and its very good operating performance.

EBITDA was up 2.9% to a new record high of €7,205 million, with the margin up 90 basis points to 15.5%. EBITDA includes stable non-operating costs of €236 million.

Recurring net income rose 1.7% to a record high of €3,474 million. The tax rate on recurring net income was 24%.

Free cash flow came in at a new record-high of €4,031 million. The conversion ratio remained stable at 62%, with very good management of operating working capital requirement (WCR), which represented 12 days’ sales at end-2024 compared to 13 days’ sales at end-2023.

High Performance Solutions (HPS) reported like-for-like sales down 1.9% over the year, with a sequential improvement between the first half (down 3.5%) and the second (down 0.3%). The operating margin was up slightly at 12.1%, thanks to well-managed costs and prices which offset the lower volumes.

Benoit Bazin, Chairman and Chief Executive Officer of Saint-Gobain, commented: 

“Our 2024 results once again demonstrate the success of Saint-Gobain’s new profile, with the Group delivering a very strong operating performance despite a mixed macroeconomic environment. The roll-out of our comprehensive range of sustainable and innovative solutions for our customers along with our local performance-driven organization have enabled us to report new record results. Over the past 12 months, Saint-Gobain also completed four landmark acquisitions, which are perfectly aligned with our strategy of worldwide leadership in light and sustainable construction and located in regions with strong structural growth: CSR in Australia, Bailey in Canada and, in construction chemicals, Cemix in Mexico and FOSROC in India and the Middle East. I’m once again extremely grateful for the dedication and talent shown by all our teams, who are key to our success. 

I am confident that 2025 will be another successful year for Saint-Gobain, thanks to a good dynamic in most of our regions, a gradual recovery in Western Europe, and the integration of our recent acquisitions. In this context, the Group is expecting an operating margin of more than 11.0% in 2025, above the initial objective of its strategic plan. 

After the success of the “Grow & Impact” plan, we will share the Group’s new ambitions at our Investor Day on October 6, reflecting the continuation of our strategy of worldwide leadership in light and sustainable construction along with our growth and outperformance plan.”