Holcim Sees US Demand for Roofs Soar After Hurricane Damage

This content was published on October 25, 2024 - 11:50

2 minutes

(Bloomberg) — Holcim Ltd. is benefiting from the hurricanes that caused billions of dollars in damage to parts of the US in recent months as Americans rush to fix their roofs.

“We are seeing additional demand in re-roofing particularly as a result of adverse weather events” in North America, Chief Executive Officer Miljan Gutovic said on a call with reporters Friday. “With our strong North America footprint, we stand to benefit disproportionately.”

Milton was the fifth hurricane to strike the US Gulf Coast this year. It flooded multimillion-dollar mansions, condominiums and downtown boutiques and restaurants that were still cleaning up after Helene. These back-to-back hurricanes are expected to cost insurers as much as $55 billion.

Holcim, a Swiss company that makes roofs and other housing products, is seeking growth in the US, where builders are racing to relieve a chronic lack of single-family homes and construct more energy-efficient buildings to meet regulatory pressures.

The North American market is strong, Holcim said Friday, adding that it has secured more than 150 infrastructure projects there. The region “will continue to drive margin expansion for the full year,” the company said.

Recurring earnings before interest and taxes climbed to 1.67 billion Swiss francs ($1.93 billion) in the third quarter, the company said, in line with analyst projections. While sales in the period slightly missed expectations, Holcim confirmed its full-year outlook.

Its plan to list its North American business is on track to be completed in the first half of next year, the company said. Still, initial plans for a capital markets day due at the end of this year were pushed back to the beginning of 2025, in order for SEC filings to be completed, Gutovic said.

Holcim’s shares gained as much as 2% on Friday. Since it announced the spinoff at the end of January, they have gained over 30%.

(Updates with CEO call comments and additional detail throughout.)