Sika Reports Profit Drop in 2025

In 2025, Sika generated sales of CHF 11,201.3 million (in Swiss Francs), down -4.9% from 2024: CHF 11,763.1 million year on year.

However, the company reports continued market share gains in all regions, with acquisitions contributing 1.0% to sales growth.

The business’s material margin was 54.9% compared to 54.5% in 2024. The increase results from a focus on new product innovation while also managing input cost inflation, according to the company.

Profitability was impacted by the cost of investing CHF 108 million in an efficiency and modernization plan named Fast Forward, targeted to deliver a payback through growth and efficiencies in under two years. Net profit for 2025 was CHF 1,045.3 million, down 17.6% on 2024.

CEO Thomas Hasler said: “Sika’s focus on delivering high value-add solutions to our customers drove market share gains across all regions in what was a challenging year for the construction industry.

“Global markets were impacted by US tariff policy as well as residential real estate softness in China. In the fourth quarter, the US building industry was also affected by the government shutdown. We used this period to strengthen our competitive position and prepare for the next phase of industry growth – laying important foundations for further outperformance in the coming years.

“With Fast Forward we are creating a leaner, more agile organization, accelerating innovation, digitalization, and efficiency.

“In 2025, we announced seven bolt-on acquisitions that will create significant value for our shareholders as we rapidly deliver on both the cost and revenue synergies targeted. We also undertook additional investments to expand manufacturing capacity.

“We expect global market conditions in the construction industry to remain muted in 2026, with a continuation of the market trends seen in 2025. While the first half will be softer for the industry, we anticipate improving momentum as the year progresses – and remain confident in Sika’s ability to outperform the market by 3% to 6% in local currencies.”

Market Share

Sika’s largest region of Europe, Middle East, Africa achieved sales growth of 2.2% in local currencies (2024: 7.3%). Business performance was particularly strong in the Middle East and Africa, where Sika recorded double-digit growth. Parts of southern Europe likewise posted solid growth rates. Eastern Europe delivered sequential improvement throughout 2025.

In the Americas region, sales increased by 2.2% in local currencies (2024: 11.2%). Following a strong start to the year, conditions softened in the second half. In the fourth quarter, the longest government shutdown in history had a negative impact on commercial construction. In the USA, data center investment remained a bright spot in 2025, and Canada and Latin America proved to be resilient.

In the Asia/Pacific region, sales declined by -5.3% in local currencies (2024: 2.4%). The results were impacted by the double-digit decline in sales in the Chinese construction business. Excluding China construction business, the region recorded positive organic growth of 2.5%. In China, Sika’s short-term focus is on driving structural adjustments and protecting margins. By contrast, the markets in India and Southeast Asia – as well as the Automotive & Industry segment – recorded dynamic growth.

Fast Forward

Sika’s Fast Forward program is accelerating innovation and digital transformation across all markets. As part of the program, Sika implemented structural adjustments in China and introduced efficiency measures in other markets.

Efforts to optimize the production network and simplify organizational structures to increase efficiency are underway. At the same time, Sika is investing in accelerating the digital transformation of its entire value chain. Investments will run for the duration of the program to 2028. Sika expects this to generate annual savings of CHF 150 – 200 million, with the full impact expected in 2028. Around CHF 80 million of these savings are expected in 2026.

Sustainability Performance

During the year, Sika’s Scope 1 and 2 GHG emissions decreased by -6.1%, while water discharge and waste disposed per ton sold declined by -3.4% and -5.7%, respectively. A reduction in lost time accidents of -14.1% is also reported.

Outlook

Sika is convinced that it can accelerate its growth strategy when the global construction environment improves through the investments made in innovation and digitalization.

In 2026, Sika expects global market conditions to remain muted, with a low single-digit percentage decline for the year. While the first half will be softer for the industry, the company anticipates improving momentum as the year progresses.

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