Saint-Gobain has unveiled a new strategic plan, 'Lead & Grow', outlining its objectives and financial targets for the period 2026-2030.
The company will focus on raising its profitable growth trajectory with a planned allocation of around €12bn ($14.01bn) for growth investments and acquisitions over this period.
The company will direct its efforts towards maintaining its leadership positions, expanding in countries with high growth rates, and investing in construction chemicals.
The French construction group also plans to continue adjusting its business portfolio, with asset rotation anticipated to account for more than 20% of its sales by 2030.
As part of the plan, Saint-Gobain aims for mid-single-digit average sales growth in local currencies, outpacing the market by one to two percentage points.
Additional financial targets include an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin between 15% and 18%. This is against the previous 'Grow & Impact' plan with an operating margin target of 9% to 11%, equivalent to an EBITDA margin of 13% to 15%.
The company also expects an operating margin of above 11.0% for the full year of 2025.
The return on capital employed has been raised above 13%, and a free cash flow conversion ratio exceeding 50%.
Saint-Gobain intends to return approximately €8bn to shareholders. This includes about €6bn through dividends, with an objective of consistent growth in dividend per share, and €2bn through share buybacks.
Saint-Gobain chair and chief executive officer Benoit Bazin said: “With 'Lead & Grow', the group further elevates its trajectory for growth, profitability and value creation for its shareholders and customers.
“In the current geopolitical context Saint-Gobain benefits from the powerful operating model it has established and optimised country-by-country, based on local value chains.”
The company expects North America, Asia-Pacific, and emerging economies to contribute nearly 60% of total sales in the long term, up from the current 50%.
In addition, Saint-Gobain continues to develop solutions for both new construction and renovation projects, as well as infrastructure applications.
