Sika Shares Drop After Guidance Cut

By Nina Kienle

Shares in Sika dropped Tuesday after the Swiss chemicals company cut its 2025 earnings margin guidance on weaker sales and currency effects.

In European morning trading, shares were 7.1% lower at 153.15 Swiss francs.

Sika said it now expects to report an earnings before interest, taxes, depreciation, and amortization margin for 2025 of slightly above 19%. It had previously targeted a range of 19.5% to 19.8%. The downgrade reflects the impact of weaker markets on organic revenue growth in the fourth quarter, the company said.

Taking into account foreign-exchange deterioration, a stable margin would seem decent, Vontobel analyst Alexander Koller said in a note to clients.

Sika posted preliminary 2025 sales of 11.20 billion Swiss francs ($14.04 billion), down from the prior year's 11.76 billion francs, delivering 0.6% growth in local currencies.

The European, Middle Eastern and African region posted sales growth of 2.2% in local currencies, slowing from 7.3% growth the year before. In the Americas, sales growth was 2.2%, down from 11%, while Asia Pacific sales fell by 5.2%, Sika said.

Sika said it was launching an investment and efficiency program, targeting savings of 80 million francs this year, and annual savings of between 150 million and 200 million francs by 2028.

The new Ebitda margin guidance for 2025 excludes around 90 million francs in one-off costs related to the program, it added.

While Sika expects global market conditions to remain muted through the first half of 2026, favorable movement in the U.S. economy could support positive momentum in the coming months, Koller said.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

January 13, 2026 04:59 ET (09:59 GMT)