#construction chemicals

Sika AG: Quality Compounder in a Cyclical Air Pocket

Sika is the global leader in construction chemicals (admixtures, waterproofing, sealants, roofing and industrial adhesives), selling locally adapted systems through more than 400 factories in over 100 countries, with bolt-on M&A such as Parex and MBCC built into its model. 2025 sales fell 4.8% to CHF 11.20bn on a strong Swiss franc and a soft construction cycle, yet local-currency growth stayed positive and material margin rose to 54.9% while MBCC synergies reached CHF 182m. Rating Hold: a first-rate serial-acquirer compounder caught in a cyclical air pocket, but at roughly 26x trailing earnings the valuation already prices much of the margin recovery before organic growth has returned.