Ersteinschätzung Sika EN

Swiss Number Cruncher Sika - Result

Sika (SIKA)2 Sec. no.: R: 41 879 292 Price: CHF 161.25 Solid 1H26, exceeding expectations; outlook for the current year revised

Rating: Outperform Expected relative performance: 15% Sector: Specialty Chemicals Analyst: Yannik Ryf

In CHF 2025 2026E 2027E EPS P/E 24.8x 22.4x 20.0x P/B 3.9x 3.6x 3.3x Dividend Sources: Zürcher Kantonalbank, LSEG Datastream

(in CHF mn) 1H25 1H26 ZKB-E Consensus Comments (LC = local currency) Sales 5’676 5’590 5’421 5’442 Sales in H1 fell by -1.5% in CHF to CHF 5’590 mn, which was around 3% above expectations. The acquisition effect was +1.1% and the negative FX effect was -5.5%. Organic growth was there- fore +2.9%. Sales in EMEA increased by +3.9% in CHF to CHF 2’626 mn (acquisition effect +2.4%, FX effect -3.8%, organic – Change YoY -1.5% -4.5% -4.1% growth +5.3%). Sales in the Americas fell by -4.0% in CHF to CHF 1’905 mn (acquisition effect +0.2%, FX effect -6.9%, organic growth +2.7%). Sales in Asia/Pacific fell by -9.1% in CHF to CHF 1’059 mn (acquisition effect +0.1%, FX effect -7.1%, organic growth -2.1%). EBITDA 1’070 1’063 1’023 1’021 EBITDA fell by -0.7% year-on-year to CHF 1’063 mn and is around 4% above expectations. At 19.0%, the EBITDA margin is also 30 bps above expectations. The margin is being weighed down in par- ticular by negative operating leverage. The main supporting factor – Change YoY -0.7% -4.4% -4.6% is the rise in the materials margin by 60 bps to 55.7%. According to Sika, this increase is largely attributable to the continued strong focus on product innovation, efficient procurement and disciplined - Margin 18.9% 19.0% 18.9% 18.7% pricing.

Net profit Like EBITDA, net profit also fell only slightly compared with the pre- vious year and is around 6% above expectations. According to Sika, – Change YoY -0.3% -4.3% -5.6% operating free cash flow also amounts to CHF 140 mn (prev. year: CHF 182 mn), which is attributable in particular to higher capital ex- - Margin 9.8% 9.9% 9.8% 9.6% penditure (including acquisitions) and tax payments.

Outlook: Management has updated its guidance for the current year conference will take place at 3.00 pm (CET). and now expects, on the back of market share gains across all mar- kets, revenue growth of 3–6% in LC (previously 1–4%) and an EBITDA margin of 19.0–19.5% (previously: 19.5–20.0%, consensus: 19.3%). Overall, the company is confident of meeting the current consensus forecast for EBITDA in CHF. With regard to the Fast For- ward programme, it is also on track to realise savings of CHF 80 mn this year. Conclusion: Overall, despite the challenging global market environ- ment, Sika delivered a solid first half-year that exceeded expectations on the whole. Of particular note are the performance of organic growth (ZKB-E: mainly due to price effects) and the solid trend in profitability. With regard to the updated outlook (higher revenue growth, lower margin), we do not expect any significant changes to the consensus at the level of absolute EBITDA. According to today’s announcement, Sika is confident of achieving this figure. Even though Sika is currently facing rather challenging end markets and is currently reporting only modest organic growth (ZKB-E: little volume growth), we consider the share to be attractively valued (ZKB-E: DCF fair value of CHF 197 per share, WACC 7.5%, TGR from 2031: 4.5%). We maintain our “Outperform” rating. An investor

ANALYST CERTIFICATIONS AND REQUIRED DISCLOSURES ARE IN THE DISCLOSURE APPENDIX. Swiss Number Cruncher Sika Zürcher Kantonalbank 28. July 2026 1

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