(BFM Stock Exchange) – The building materials specialist further fared in 2024, with a record operating margin of 11.4%. The company has shown caution for 2025, but the comments of its managing director, Benoît Bazin, a priori convinced the market.

The Constance of Saint-Gobain deserves to be praised. On the latest publications of the specialist in building materials, his action almost always reacted well. A notable exception took place a year ago when the company had delivered its 2023 results.

This time, the dean of the CAC 40 groups – his origins date back to the 17th century under Louis XIV – did not disappoint during the publication of his accounts for the 2024 financial year.

While the CAC 40 is poorly oriented (-0.4%), this Friday, February 28, and the companies that have published results are harshly sanctioned (Teleperformance loses 7.7%, Valeo falls by 12.5%, Forvia plunges by 18%, Nexity collapses by 19%), Saint-Gobain is pouring out of the game.

Its title increased by 1.3% around 3:30 p.m., signing the second highest increase in CAC 40.

Saint-Gobain has published overall online results with expectations for 2024. In the fourth quarter alone, its income fell 2.7% in comparable data, “online battery” with consensus, stresses Stifel.

>> Access our exclusive graphic analyzes, and enter into the confidence of the trading portfolio

Record margin

The director general of the company, Benoît Bazin, told analysts that, retired from the number of days worked, the fourth quarter had shown an improvement in volumes compared to the third. Especially in Germany and the United Kingdom.

Throughout the year, Saint-Gobain has generated income of 46.57 billion euros, down 2.9% in published data and 3.6% in comparable data. This decrease is mainly explained by the withdrawal of volumes (with an impact of three percentage points over the year), itself due to a construction market still difficult in many countries. Especially in Europe, a region which has more than 50% of the company’s income. Revenues from the “Europe-Middle-Africa” ​​area thus fell 7.6% in 2024 with an impact of volumes of 6.3 percentage points.

Faced with this still difficult context, Saint-Gobain has treated its profitability. The group has released an operating result up 1% to 5.3 billion euros and signed a record operating margin of 11.4%, against 11% in 2023. These figures are a very small bit higher than expectations, the consensus being around 5.25 billion euros for the operating result and 11.3% for the margin.

This was allowed by efforts on costs. Despite slight price drops (-0.6%), the company indicates that it has produced a positive “spread price-hobs” over the year.

Net profit increased by 6.6% to 2.67 billion euros.

A prudent profitability target

At the end of this publication, Saint-Gobain announced to aim for an operating margin “higher” at 11% in 2025 and indicated that he would hold a day dedicated to investors on October 6.

Stifel notes that the prospect of margin is lower than expectations, housed at 11.7% for 2025, and judges that this target is “too cautious”.

“The title could mark the step after a publication 2024 overall online and an insufficient guidance (perspective) to lead to an upward revision of expectations,” notes Oddo BHF, in a note published before the opening of the Stock Exchange.

However, the broker adds that “the title could bounce back as the management reveals elements of guidance 2025”.

Well seen. The Saint-Gobain action, which had dropped more than 1.2%, quickly turned and won up to 3.2% at the start of the session, as its leaders gave more details on its prospects for the current year.

“It seems that Benoît Bazin’s speech convinced investors,” notes an analyst. “In addition, the group had already given prudent margins at the beginning of last year and we later noticed that the company had been cautious. The investors may also have become aware of this,” he added.

During the conference with analysts, Benoît Bazin said that the company was waiting for volumes “stable or slightly increasing over the whole of 2025”.

Saint-Gobain anticipates more precisely an impact of volumes still “slightly negative” in the first half, especially in the first quarter because of France, before a resumption in the second, especially in Europe. This rebound in volumes expected in Europe will give more operational lever to the company, added the manager. Which should result in better profitability.

No worries about customs duties

Benoît Bazin added that the company still intended to make a “slight” prices-cost “SPREAD”, that is to say that the variation in costs will be lower than that of prices. The director general notably indicated that several price increases were spent at the start of the year in various segments and countries (especially in roofing activities).

“We are still ambitious on the margins,” he added, repeating that the 11% operating rate rate was a “floor”, that is to say an absolute minium, for 2025.

Asked about the potential impact of customs from customs who may spread around the world, Benoît Bazin said he was not waiting for anything “significant”.

The manager explained that Saint-Gobain was a company that operated for a local clientele with an organization by regions. “We have 125 sites in the United States, 37 sites in Canada, we are number 1 in the United States, number 1 in Canada (…) We are well positioned, our products do not travel, our customers are local, I am not worried,” he developed.

Stifel has renewed his opinion on buying action. “The title responds to all our preferences, its strong exposure to housing and Europe that can lead to growth in volumes greater than expectations,” explains the design office.

“We are generally convinced that changes in recent years have not yet been integrated into their fair value (Green Deal, Sustainable ESG profile, strong pricing power, change in the group’s profile via emblematic acquisitions and transfers),” abounds Oddo BHF.

“The performance of Saint -Gobain in 2024 strengthens its capacity to function well in a mixed demand environment. Tariff discipline, cost control and strategic positioning of the company’s portfolio – in particular its expansion on high -growth markets such as India, North America and Mexico – should continue to support resilience”, explains the independent AlphaValue study office.

“However, the rebound in construction in Europe remains a key factor to unlock a new growth dynamic,” he adds.