North America reroof steady; new‑build softer into H2 – Contractor caution and slower load‑ins flagged by Carlisle temper roofing growth, but retrofit/data‑center reroof holds up. Carlisle Q2 '25
Europe sequentially improving from a low base – Infrastructure pipelines and early resi green shoots support gradual recovery; façade/ETICS remains soft but less negative. Holcim H1 '25 • Sto H1 '25
India/AMEA accelerating in finishing and infra – Double‑digit Indian volumes at Pidilite and strong AMEA margins point to outperformance for mortars, waterproofing and admixtures. Pidilite Q1 FY26 • Holcim H1 '25
Refurbishment/flooring stays firm – RPM's turnkey floors and protective systems grew high single‑digit organically, supportive for Sika resin floors/parking and repair. RPM Q1 FY26
Adhesive volumes subdued but margins widen – Pricing discipline and benign raws lift peers' margins; demand still patchy in EU/US channels. H.B. Fuller Q3 '25 • Arkema Q2 '25
A&I: EV content offsets auto softness – Tesla builds rebounded QoQ and Henkel highlights content‑led strength; beneficial mix for Sika's EV/battery solutions. Tesla Q3 '25 • Henkel H1 '25
Roofing and building‑envelope read‑across
NA reroof replacement supports Roofing; new‑build drag – Carlisle reported Q2 revenue +0.6% (organic −0.6%), with mid‑single‑digit growth in reroof (~70% of mix) and worsening new construction; July sentiment turned more cautious (project delays, lighter distributor load‑ins). Carlisle Q2 '25
Sika implication: Steady retrofit/data‑center reroof volumes for Sarnafil/Sikaplan and liquid‑applied; slower spec‑driven new‑build likely weighs on order intake into Q4/Q1.
RPM's CPG also saw solid roofing/building‑envelope demand in high‑performance buildings; Europe softer and less storm‑driven restoration. RPM Q1 FY26
Europe improving sequentially, but not surging – Holcim's Europe delivered +130 bps margin expansion with commentary on robust infrastructure and early residential recovery; however, Holcim's Building Solutions net sales were slightly down in LC, pointing to muted roofing volumes. Holcim H1 '25
Sika implication: Spec‑based roofing/waterproofing in EU should stabilize; renovation and public projects help, while façade/ETICS remains the laggard (see below).
Concrete admixtures and cement additives
Infra‑led backlog and pricing sustain admixtures – Holcim group LC sales +1.8% and recurring EBIT +10.8% with AMEA margin +170–200 bps; LatAm LC sales +8.6%. Heidelberg Materials delivered revenue +3% and operating result +8% YoY with "stabilizing demand at low levels." Holcim H1 '25 • Heidelberg Materials Q2 '25
Sika implication: Admixture volumes should be resilient to slightly improving in Europe/AMEA and solid in LatAm; blended/low‑carbon concretes continue to increase admixture intensity.
Saint‑Gobain notes APAC like‑for‑like growth and Construction Chemicals expansion (M&A aided), validating structural growth in admixtures and mortars. Saint‑Gobain H1 '25
Building finishing and façade/ETICS
India retail/pro channels accelerating – Pidilite reported underlying volume growth +9.9% YoY and margin expansion, with rural outgrowing urban. Pidilite Q1 FY26
Sika implication: Sika India mortars/tile systems likely mid/high‑single‑digit volumes with healthy mix and pricing, supporting group margin mix.
Western Europe façade remains soft but less negative – Sto H1 sales −2.3% YoY (vs Q1 −4.6%); Western Europe −3.4%. Sto H1 '25
Sika implication: Germany/WE finishing still sluggish; expect sequential improvement from a low base, consistent with Sika's EU recovery framing.
China waterproofing mixed; retail/infrastructure mix rising – A key local peer's H1 revenue fell −10.8% YoY, with retail now ~37% and better cash generation. Oriental Yuhong H1 '25 (press coverage)
Sika implication: Developer‑led projects remain a headwind; renovation/retail and public works are the defensive niches.
Flooring, refurbishment and protective systems
Turnkey floors and refurb trending up – RPM's Performance Coatings Group grew +9.9% YoY (+6.7% organic), citing high‑performance buildings and protective OEM/industrial. RPM Q1 FY26
Sika implication: Resin floors, parking decks, and repair/protection should post solid growth with favorable mix into mission‑critical facilities (data centers, pharma/food, logistics).
Sika implication: Expect flat/slightly negative volumes in EU/US distribution, but pricing/mix and benign raws to support Sika's material margin.
Automotive & Industry outlook
EV platform content offsets unit softness – Tesla deliveries rose +29% QoQ in Q3, implying improving schedules into Q4; Henkel notes Mobility & Electronics growth with Automotive down YoY, underscoring content gains over unit dependence. Tesla Q3 '25 • Henkel H1 '25
Sika implication: A&I should benefit from EV/battery sealing, structural adhesives and thermal management solutions, even if ICE‑weighted programs remain soft.
Price/cost, margins and competitive dynamics
Peer prints support Sika's margin bias – Adhesives peers expanded margins on pricing discipline and lower input pressure; Henkel raised AT margin guidance. H.B. Fuller Q3 '25 • Henkel H1 '25 update
Sika implication: Together with MBCC synergies, this backdrop should help sustain the guided EBITDA margin step‑up, assuming raws remain benign.
Tariff/stocking noise but no shortage signal – RPM made strategic inventory purchases to mitigate tariffs; Carlisle saw limited pricing traction outside tariff‑affected items. RPM Q1 FY26 • Carlisle Q2 '25
Sika implication: Minor working‑capital/logistics volatility possible; underlying availability appears adequate.
Competition intensifying in APAC/ME – Saint‑Gobain's Construction Chemicals scale‑up (incl. Fosroc/Cemix) increases competitive density in infrastructure/technical applications. Saint‑Gobain H1 '25
Sika implication: Demand tailwinds (infra) help offset share battles; execution on spec and innovation remains key.
Europe: improving from trough – Margin expansion and better QoQ tone (infra, early resi), but façade/ETICS still negative YoY. Holcim H1 '25 • Sto H1 '25
Latin America: solid – Holcim LC +8.6% with strong Mexico pipeline; supportive for admixtures and repair systems. Holcim H1 '25
Peer prints and estimate revisions snapshot
Consensus revisions confirm the pattern: roofing down, refurb up – Since mid‑July, roofing‑centric Carlisle saw notable FY25E cuts, while RPM's Construction Products moved higher; adhesives peers modestly trimmed.
Peer estimate revisions since 17 Jul 2025 (latest 17 Oct 2025)
Note: Holcim's "Solutions & Products" consensus moved sharply due to its North America spin‑off (structural, not demand).
What to watch into Sika's print
Roofing order intake/backlog conversion – Any evidence that July softness in NA new‑build/spec has stabilized or worsened. Carlisle Q2 '25
Europe rate‑of‑change – Confirmation of sequential improvement in EU with infra/resi green shoots, and whether façade/ETICS remains a drag. Holcim H1 '25 • Sto H1 '25
India/AMEA durability and competition – Volume growth and pricing discipline vs. intensified APAC/ME competition post‑Fosroc. Saint‑Gobain H1 '25 • Pidilite Q1 FY26
China mix/margin – Pace of rotation toward retail/renovation and public works to offset developer exposure and pricing pressure. Oriental Yuhong H1 '25
A&I EV content wins – Additional platform awards and regional mix, especially Asia, to sustain above‑market growth vs. ICE. Tesla Q3 '25 • Henkel H1 '25
Margin bridge – How much of H2 expansion comes from price/cost, mix (refurb, EV), and MBCC synergy capture versus volume recovery. H.B. Fuller Q3 '25
Recent peer prints: direction and Sika implication
Margin up; infra pipeline strong; early resi recovery
Gradual EU improvement; support for waterproofing/admixtures
RPM
Oct 1, 2025
Floors/refurb/CPG
Floors +6.7% organic; CPG +5.4%
Positive for Sika resin floors, repair
H.B. Fuller
Sep 24, 2025
Adhesives
Volumes soft; margins +110 bps
S&B margin resilience ex‑China
Arkema
Jul 31, 2025
Adhesives
Volumes −1.3%; price −2.5%
Developed‑market channel still weak
Pidilite
Aug 14, 2025
India finishing
UVG ~+10%
India mortars/waterproofing strength
Sto
Aug 27, 2025
Façade/ETICS
H1 sales −2.3%; sequential improvement
WE façade still a headwind
Tesla
Oct 2, 2025
Auto
Q3 deliveries +29% QoQ
Supportive A&I schedules into Q4
Uncertainty / Limitations
Peer segment taxonomies differ from Sika's; mapping is best‑efforts and M&A can distort like‑for‑like trends (e.g., Saint‑Gobain Construction Chemicals). Some China datapoints are via secondary press coverage of filings. Holcim post‑spin detail excludes NA, so Americas read‑across leans on Carlisle/RPM. Timing mismatches (fiscal calendars) mean sequential cadence is approximate.
Primer included 12 read-across items in this report of total 12 items available from its research.
This content is provided for general information only. It is not investment research and does not constitute advice, a recommendation, or a solicitation to trade. Primer can make mistakes - please verify independently.
