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Saint-Gobain has announced plans to invest about 12 billion euros (USD 14 billion) for business expansion through organic growth and acquisitions under its 2026-2030 strategy. The company will also allocate around 8 billion euros for shareholder returns, including dividends and share buybacks. It aims to grow its construction chemicals segment and expand in North America, Asia, and emerging markets, expecting these regions to contribute nearly 60% of sales in the long term. Financial targets include mid-single-digit sales growth and a core profit margin of 15-18%.
Saint-Gobain plans to invest approximately 12 billion euros (USD 14 billion) in organic growth and acquisitions over the next several years under its 2026-2030 strategy. The company also intends to return around 8 billion euros to shareholders, including 6 billion euros through dividends and 2 billion euros via share buybacks. Advertisement
The company will focus on expanding its construction chemicals segment and increasing its presence in high-growth markets such as North America, Asia-Pacific, and other emerging regions. Its strategy emphasizes industrial and non-residential sectors, aiming to capitalize on population growth, urbanization in Asia and emerging countries, potential recovery in Europe, and sustained demand in North America.
Saint-Gobain expects high-growth regions to contribute nearly 60% of its sales in the long term, up from about 50% at present. The company has also revised its financial targets for the upcoming four years, aiming to surpass the broader market with mid-single-digit sales growth on average. It now targets a core profit (EBITDA) margin of 15% to 18%, higher than the 13% to 15% expected under its previous plan.
Following the announcement, Saint-Gobain shares initially rose over 1% in early trading before retreating as French stocks declined after the sudden resignation of the country's Prime Minister. By late morning, shares were down 2.4%.
The company's plan reflects a clear focus on markets with strong growth potential, combining strategic investments, acquisitions, and shareholder returns. By strengthening its core business and targeting specific high-growth regions, Saint-Gobain aims to enhance its global presence and profitability while responding to long-term market demands driven by industrial expansion and urbanization trends.
Source Reuters
5th Jun, 2025
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