Sika

Company Update:
Sika delivered a strong Q2 2026, with sales of CHF 3,099.6m, around 5.3% above consensus. Growth accelerated to 6.8% in local currencies, versus 1.7% expected, including 1.1% from acquisitions, while organic growth reached 5.7%. 

EMEA H1 sales increased by 7.7% in local currencies. Growth was supported by Eastern Europe and an improving German market, while the Middle East returned to strong double-digit growth in Q2, underpinned by major infrastructure projects. The Americas also improved sequentially, supported by continued double-digit growth in data-center activities. Asia-Pacific remained affected by China, although the region delivered 7.7% organic growth excluding Chinese construction.

H1 EBITDA amounted to CHF 1,063m, 4.3% above consensus, corresponding to a 19.0% margin versus 18.8% expected.

Sika raised its FY26 local-currency sales growth guidance to 3-6%, from 1-4%, but lowered its EBITDA margin range to 19.0-19.5%, from 19.5-20.0%. Management nevertheless remains comfortable with current consensus expectations, implying a margin of around 19.3%. The group also reaffirmed that its Strategy 2028 targets remain on track. Overall, the release is positive on sales momentum, as the margin reset was mostly priced in. We expect a positive market reaction.

Expert Opinion:
These are strong encouraging results. Sika is back to very attractive valuation considering its underlying fundamental quality. There is still uncertainty regarding the price fixing allegation in additives for cement, concrete and mortar, but despite this, we still view Sika as an attractive opportunity. A clear Buy and Hold stock for the long run.