Compagnie de Saint Gobain (GOB) Q2 2026 Earnings Report

The call presents a broadly positive operational and strategic picture: underlying growth accelerated in Q2 across regions, profitability (EBITDA margin 15.4%) and cash generation were strong, and management executed active portfolio rotation and targeted investment in high-growth markets and construction chemicals. Offsetting risks include forex headwinds, a slightly negative H1 price-cost spread (with only a slight positive expected for the full year), regional pockets of softness (Latin America, North American new construction) and input-cost inflation that requires continued price realization. On balance, the positive items (growth acceleration, margins, cash, M&A and capacity expansion) materially outweigh the challenges cited.

The group guided to continued like‑for‑like growth in H2 after delivering +0.7% LFL in H1 (Q2 +3.5% organic), with construction chemicals particularly strong (Q2 organic +8.5%); H1 metrics included an EBITDA margin of 15.4% (management expects >15% for 2026), recurring net income of EUR 1.7bn, free cash flow of EUR 2.1bn (cash conversion 65% of EBITDA and 125% of recurring net income), operating working capital at 24 days, CapEx expected around EUR 2bn for the full year, net debt ratio 1.6x and ROCE 13.5% in local currencies (FX‑diluted in actuals). Management reiterated a target for a slight positive price‑cost spread for 2026 after prices +0.8% in H1 (Q2 +1.6%), noted FX headwinds of -1.3% and structural -0.5% in H1, depreciation +3%, EPS -2.6% in LC, a 25% recurring tax rate, ~75% energy hedging for 2026 (energy <4% of sales), ~EUR 3bn of sales rotated YTD via 23 transactions (one‑third of the >20% by‑2030 rotation target), and EUR 1.4bn returned to shareholders in H1 (including EUR 292m buybacks).