Compagnie de Saint-Gobain SA (CODYY) AI Stock Analysis

Company Guidance

Management reiterated a 2026 outlook combining continued like‑for‑like growth across regions with disciplined margin and cash targets: they expect a slight positive price‑cost spread for the year, an EBITDA margin above 15% (H1 15.4%), and H2 like‑for‑like sales growth after H1 +0.7% (Q2 +3.5%; Asia‑Pacific H1 +7.0% like‑for‑like, Europe H1 +1.7%, North America Q2 +1.2%); construction chemicals remain a key growth engine (Q2 organic +8.5%, target ~€9bn sales by 2030). Key financial metrics: recurring net income €1.7bn (H1), free cash flow €2.1bn (H1) with 65% cash conversion on EBITDA (125% on recurring NI), operating working capital 24 days, CapEx ~€2bn FY, net debt ratio 1.6x, H1 ROCE 13.5% (target >13% over the plan), EPS down 2.6% in local currencies, tax rate ~25%, depreciation +3%, and non‑operating costs expected slightly below €250m p.a. Operational and portfolio actions: prices +0.8% H1 (up 1.6% in Q2; realized pricing noted ≈1.8%), FX headwind −1.3% H1, structure −0.5% H1, energy <4% of sales and ~75% hedged for 2026, ~90% of CapEx/M&A deployed in high‑growth markets, and 23 transactions YTD rotating ~€3bn of sales (≈40–50bp margin accretion on a full‑year basis and roughly one‑third of the >20% sales‑rotation target to 2030); overall guidance emphasizes outperformance, margin, cash and disciplined capital allocation.