SIKA DELIVERS 4.0% LOCAL CURRENCY REVENUE GROWTH AND UPGRADES FULL-YEAR GROWTH EXPECTATIONS

• Second quarter showed accelerating momentum with 6.8% local currency growth and 5.7% organic growth, with EMEA region leading at 7.7% growth driven by Eastern Europe and Middle East infrastructure projects
• Net profit remained stable at CHF 552.1 million while operating free cash flow declined to CHF 139.6 million from CHF 181.9 million year-over-year; company achieved record employee engagement score of 88 index points
• Fast Forward restructuring program on track with CHF 80 million savings expected in 2026, scaling to CHF 150-200 million annually by 2028; company opened new plants in six countries and acquired Swedish mortar manufacturer Finja

Sika H1 2026 Results Summary

Key Financial Results

Sika reported H1 2026 sales of CHF 5.59 billion, down 1.5% in Swiss francs but up 4.0% in local currencies. Organic growth reached 2.9% with acquisitions contributing 1.1%, offset by a significant foreign currency headwind of -5.5%. Second quarter performance showed accelerated momentum with 6.8% local currency growth and 5.7% organic growth.

EBITDA totaled CHF 1.06 billion with a 19.0% margin (up 10 bps year-over-year). Material margin improved 60 bps to 55.7%. Net profit remained stable at CHF 552.1 million, though operating free cash flow declined to CHF 139.6 million from CHF 181.9 million prior year.

Regional Performance

• EMEA: Strong acceleration to 7.7% local currency growth (2025: 1.9%), led by Eastern Europe and Middle East infrastructure projects
• Americas: 2.9% growth with improving Q2 performance; strong double-digit growth in data center projects
• Asia/Pacific: -2.0% decline, impacted by double-digit contraction in Chinese residential construction; excluding China construction, region posted 7.7% growth

Strategic Initiatives

The Fast Forward cost efficiency program is on track to deliver CHF 80 million savings in 2026, targeting CHF 150-200 million annual savings by 2028. Employee engagement reached a record 88 index points, exceeding strategic targets.

Key acquisitions include Swedish mortar manufacturer Finja (completed) and Turkey's Akkim (CHF 220 million annual sales, closing Q3 2026).

Outlook Upgrade

Sika raised 2026 sales growth guidance to 3-6% in local currencies (previously lower) with expected EBITDA margin of 19.0-19.5%. Management confirms comfort with consensus expectations and reaffirms Strategy 2028 medium-term targets.