Sika earnings for the first nine months of 2026 showed sales rising 4.8% in local currencies, with growth accelerating in the third quarter despite continued weakness in Chinese construction. The company reported revenue of CHF 8.71 billion on October 23 and maintained its full-year growth and profitability guidance. Currency movements limited reported sales growth in Swiss francs to 1.6%.
Key Takeaways
- Third-quarter local-currency sales growth accelerated to 6.1%, above the nine-month pace of 4.8%.
- Higher material margins and cost savings helped keep the EBITDA margin unchanged at 19.2%.
- Sika retained its 2026 targets despite Chinese construction weakness and rising transportation costs.
Table of Contents
- Sika earnings separate operating growth from currency pressure
- Regional growth diverges as China remains weak
- Cost savings cushion higher operating expenses
- Unchanged guidance leaves fourth-quarter execution in focus
- Conclusion
Sika earnings separate operating growth from currency pressure
Sika’s nine-month results announcement showed organic sales growth of 3.5%, with acquisitions contributing another 1.3 percentage points. Foreign-exchange movements reduced reported revenue growth by 3.2 percentage points, explaining why the Swiss-franc increase was considerably smaller than growth in local currencies.
Organic growth accelerated to 4.6% in the third quarter from 2.9% in the first half. Excluding the decline in the Chinese construction business, nine-month local-currency sales growth reached 6.2%.
Profitability held up as the material margin increased 40 basis points to 55.4%. EBITDA rose 1.9% to CHF 1.68 billion, while the EBITDA margin remained at 19.2%. The distinction matters: earnings increased, but the company did not expand its EBITDA margin.
| Item | Details |
|---|---|
| Nine-month net profit | CHF 887.8 million, compared with CHF 870.9 million in 2025. |
| Diluted earnings per share | CHF 5.52, compared with CHF 5.42 a year earlier. |
| Operating profit | EBIT rose 2.3% to CHF 1,265.8 million. |
| Cash-generation target | Management continued to target at least 10% of net sales. |
Regional growth diverges as China remains weak
EMEA led the regional performance with nine-month local-currency sales growth of 8.3%. Sika reported stronger business in Germany and double-digit growth in the Middle East. European construction activity slowed during the July and August heat waves but recovered in September.
The Americas grew 4.1% in local currencies over nine months, accelerating to 6.7% in the third quarter. Infrastructure projects supported demand, while Sika’s data-center business continued growing at a double-digit pace.
Asia/Pacific sales declined 2.3% in local currencies over nine months. That figure describes the whole region, not China alone. Excluding the Chinese construction business, regional organic growth was 7.7%, supported by India and Southeast Asia.
Chief Executive Officer Thomas Hasler said Sika was shifting its Chinese product offering and sales effort toward renovation and better-performing cities rather than pursuing volume in a sharply weaker residential construction market. He did not provide a timetable for Asia/Pacific’s return to growth.
Cost savings cushion higher operating expenses
The Fast Forward program reached a monthly savings run rate of CHF 8 million at the end of the reporting period. Sika continued to target CHF 80 million of benefits in 2026 and CHF 150 million to CHF 200 million annually from 2028.
Those productivity measures and pricing helped offset higher costs. Other operating expenses increased 5.5%, with transportation costs affected by higher diesel prices and driver shortages.
Chief Financial Officer Adrian Widmer said the company expected its full-year absolute price-cost spread in Swiss francs to remain at least slightly positive. He nevertheless flagged modest margin pressure toward year-end from higher input and transportation costs.
Unchanged guidance leaves fourth-quarter execution in focus
Sika reiterated its 2026 guidance for local-currency sales growth of 3% to 6% and an EBITDA margin of 19.0% to 19.5%. These remain management targets rather than completed full-year results.
Acquisitions are also expanding the business. Sika completed its purchase of Turkey-based adhesives and sealants producer Akkim during the third quarter and acquired the UK’s Azpects Group in October. Its agreement to buy Resonac Corporation’s adhesives business in Japan remained pending, with closing expected in mid-2027.
Hasler declined to give a 2027 margin forecast during the earnings call, saying the company would provide guidance with its full-year results.
Conclusion
Sika’s faster third-quarter growth and stable EBITDA margin supported an unchanged annual outlook, although China and cost pressure remained constraints. The next scheduled results milestone is February 19, 2027, when the company will present its full-year figures and provide 2027 guidance.
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