Despite profit and increased margin Zug-based construction chemicals manufacturer Sika cuts up to 1500 jobs
The Zug-based construction chemicals group Sika is feeling the effects of weak demand in China and negative currency effects. It is taking the consequences with job cuts and other measures. Despite profits and higher margins.
24.10.2025, 07:08
24.10.2025, 07:09
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- In the first nine months of 2025, Sika recorded a decline in sales of 3.8% to 8.78 billion Swiss francs, burdened by currency effects and the weak construction industry in China.
- To increase efficiency, Sika is launching the "Fast Forward" program, which includes investments and up to 1,500 job cuts and is intended to bring long-term savings.
- Thanks to acquisitions and currency adjustments, Sika nevertheless posted a profit in the first three quarters and increased its margin slightly compared to the previous year.
Construction chemicals and adhesives manufacturer Sika was held back by strong currency effects and a weak construction market in China in the first nine months of the 2025 financial year. The Zug-based construction chemicals manufacturer is now launching a package of measures that also includes job cuts.
Sales fell by 3.8 percent to 8.78 billion Swiss francs from January to September, as Sika announced on Friday. Excluding currency effects, this resulted in an increase of 1.1 percent, which was solely due to acquisitions.
In terms of profitability, Sika was able to improve its margin thanks to efficiency gains and synergy effects from the MBCC takeover, among other things. Operating profit at EBITDA level fell by 3.3 percent to CHF 1.64 billion. However, the corresponding margin reached 19.2 percent, compared to 19.1 percent in the previous year.
Adjustments in weak markets
Nevertheless, Sika is making structural adjustments in persistently weak markets such as China, for example by reducing the workforce by up to 1,500 employees. The one-off costs for this amount to CHF 80 to 100 million in the current year.
The measures are part of the new "Fast Forward" program. It provides for investments of CHF 120 to 150 million and is expected to generate annual savings of CHF 150 to 200 million by 2028.
Despite the overall downward market trend and the challenging market situation in China, Sika continues to expect a slight increase in sales in local currencies in 2025. Including the new one-off costs, however, the EBITDA margin will now be around 19 percent. Excluding these costs, Sika continues to expect a margin in the range of 19.5 to 19.8 percent.
Because the market is growing less quickly than expected, the medium-term targets will have to be scaled back: Sika now still expects sales growth of 3 to 6 percent in local currencies by 2028, down from 6 to 9 percent previously. The target of an EBITDA margin in the range of 20 to 23 percent is confirmed.
