Earnings Alerts

Sika (SIKA) Earnings: 2024 Growth Exceeds Estimates, Targets 2025 Sales Increase and Sustainable Profit

By February 21, 2025 No Comments
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  • Sika forecasts sales growth in local currencies between 3% to 6% for 2025, with an estimate of 5.41%.
  • The company’s EBIT for 2024 was CHF 1.71 billion, an 11% increase from the previous year, narrowly missing the estimate of CHF 1.72 billion.
  • Gross profit reached CHF 6.42 billion, a 6.5% increase year-on-year, surpassing the estimate of CHF 6.39 billion.
  • EBITDA for 2024 was CHF 2.27 billion, marking an 11% rise from the previous year, slightly above the estimate of CHF 2.26 billion.
  • EBIT margin improved to 14.6% compared to 13.8% in the previous year, just shy of the estimated 14.7%.
  • Net income increased by 17% year-on-year to CHF 1.25 billion.
  • Dividend per share rose to CHF 3.60 from CHF 3.30 the previous year, exceeding the estimated CHF 3.54.
  • Operating free cash flow was CHF 1.40 billion, above the estimated CHF 1.35 billion.
  • Gross margin increased to 54.5% from 53.6% the previous year, close to the estimate of 54.7%.
  • The company projects an EBITDA margin of 19.5% to 19.8% for 2025, expecting a significant increase in EBITDA.
  • Sika reaffirms its 2028 strategic mid-term targets for sustainable, profitable growth.
  • Market sentiment includes 15 buys, 5 holds, and 5 sells for Sika’s stock.

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A look at Sika Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts utilizing Smartkarma Smart Scores have assessed Sika AG’s long-term outlook based on key factors. With a strong Growth score of 4, Sika projects positively in terms of expansion potential in the construction materials market. This indicates a favorable trajectory for the company’s future development and revenue growth opportunities. Additionally, the Momentum score of 3 suggests that Sika has notable potential to maintain its growth and operational performance over time.

While Sika’s Value, Dividend, and Resilience scores are more moderate at 2, these aspects still contribute to the overall assessment of the company’s financial health and stability. As a manufacturer of construction materials catering to a global customer base, Sika AG is positioned to benefit from ongoing industry demand and infrastructure projects worldwide. Combining these factors, Sika seems well-positioned for sustained growth and market presence in the construction materials sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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