Compagnie de Saint-Gobain (LON:COD) reported a 2.3% decline in first-quarter 2026 sales on a like-for-like basis, with management characterizing the performance as stronger than expected given unfavorable weather in January and February in both North America and Europe.
Chairman and CEO Benoit Bazin said March came in “better than expected,” helped by a weather-related catch-up and, to a lesser extent, some customer anticipation of upcoming price increases. CFO Maud Thuaudet added that group pricing was stable in Q1, though comparisons were elevated in the Americas following earlier price actions in the prior year.
Q1 sales: weather headwinds offset by Asia-Pacific momentum
By region, Saint-Gobain’s performance was mixed:
- Europe: Sales fell 0.9% like-for-like. Thuaudet described the quarter as “resilient” despite unusually poor weather. Northern Europe declined 1.7%, with Eastern Europe growing (driven by Poland and the Czech Republic), mixed conditions in the Nordics, a soft market in the U.K., and Germany up in Construction Chemicals but down overall due to restructuring measures taken in 2025. Southern Europe was stable; in France, sales were down 0.8% like-for-like despite “record rainfall and flooding,” which Thuaudet attributed to the company’s solutions strategy and use of AI tools to accelerate cross-selling and specified sales.
- Americas: The region saw a 7% decrease in volumes, similar to Q4 2025, while the price effect was down 1.5% against a high comparison basis. North America declined 11.3% like-for-like, with a harsh winter delaying activity and new construction remaining weak. Latin America fell 1.6% like-for-like; Thuaudet said volumes grew but pricing was lower due to adjustments linked to declining energy costs.
- Asia-Pacific: Sales rose 9% in local currencies and 7% like-for-like. Thuaudet said all major countries grew, with India delivering double-digit volume growth and market share gains, Southeast Asia remaining dynamic, Australia returning to growth, and China continuing the positive trend seen since the second half of 2025.
Bazin reiterated that Saint-Gobain has a “balanced footprint,” with roughly one-third of results from each of North America, Western Europe, and Asian emerging markets, which he said provides flexibility to capture growth opportunities across geographies.
Inflation returns; company pushes for price increases
Management repeatedly pointed to a shift in the cost environment following conflict in the Middle East. Bazin noted the group’s Middle East exposure is limited (about 1% of group sales), but said the raw materials and energy backdrop has turned inflationary. Thuaudet said the company now expects “around mid-single-digit inflation” on its approximately EUR 12 billion annual bill for energy, transportation, and raw materials.
Despite the inflation outlook, Saint-Gobain maintained its expectation of a “slight positive price-cost spread” for 2026. Thuaudet said price increases were being pursued “country by country,” with effects expected to “materialize over Q2” and be fully realized in the second half.
She also sought to contextualize energy exposure, stating the company’s energy bill is “below 4% of group sales,” split roughly evenly between electricity and gas, with gas representing “less than 2% of group sales.” She said Saint-Gobain is “well hedged,” with a preference to maintain hedging around 75% in volatile periods and indicated that level was a “good indication for this year,” including Q2.
North America: weak new construction, but pricing actions underway
In North America, Bazin said Saint-Gobain does not expect to return to positive like-for-like growth as soon as Q2, citing ongoing weakness in new construction. He said the comparison base becomes easier in the second half, which should support a stronger performance later in the year.
On U.S. roofing, Bazin said the company saw a sequential improvement in pricing in April versus the start of the year, when it “had to cut some deals here and there to start the season.” He tied the broader year-over-year price comparison to timing: last year included a significant January price increase, while this year’s planned increases are being implemented later. He also said the company had announced an additional roofing price increase “sometime in June up to 10%.” Bazin added that pricing momentum should be “positive” sequentially in North America, and said the company also expects to push pricing in siding, citing PVC as a key raw material.
Thuaudet highlighted an example of non-residential momentum: Saint-Gobain’s North American teams are specifying solutions for 180 data center projects currently, versus 80 last year.
Construction Chemicals and portfolio rotation remain priorities
Saint-Gobain continued to emphasize Construction Chemicals as a growth focus. Bazin said the company completed three bolt-on acquisitions in Construction Chemicals in the first quarter and described the area as one of the group’s target categories for investment. For Q1, he said Construction Chemicals delivered 4.3% growth in local currencies and +1.7% organic growth.
In the Q&A, Bazin clarified that outperformance in Construction Chemicals “captures the total perimeter” of the business (which he said is “north of EUR 6.5 billion”), and attributed momentum to the group’s ability to combine a broad product portfolio with technical support, key account management, and digital tools. He cited Verifi (an IoT solution to measure concrete properties during transit) and Maturix (digital monitoring of concrete performance) as examples of digital applications supporting the offering.
On portfolio streamlining, Bazin noted Saint-Gobain announced the divestment of its ventilation distribution business in the Nordics and reiterated the company’s plan for more than 20% portfolio rotation between 2026 and 2030.
Outlook reiterated; EBITDA margin target maintained
Management reaffirmed its 2026 outlook despite geopolitical uncertainty. Bazin said Saint-Gobain has not seen a “significant impact on demand overall” so far, aside from direct impacts in the Middle East, and stated that structural needs and “mega trends” in construction continue to support the company’s “Lead and Grow” plan.
Saint-Gobain confirmed it expects an EBITDA margin of more than 15% in 2026. Bazin said the first half will be affected by extreme weather conditions at the start of the year in Europe and North America. Thuaudet added that foreign exchange would be dilutive to first-half margin, and said management remains focused on cost control and pricing to protect profitability.
The company said it will report first-half 2026 results on July 30, 2026.
About Compagnie de Saint-Gobain (LON:COD)
Compagnie de Saint-Gobain SA designs, manufactures, and distributes materials and solutions for the construction and industrial markets worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and vehicles under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, and Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands.
