Good morning, and Welcome to Holcim's nine months 2026 analyst and investor presentation. My name is Bernd Pomrehn, and I am pleased to be joined by Miljan Gutovic, our CEO, and Steffen Kindler, our CFO. After their presentations, you will have the opportunity to ask your questions. Moira, may I ask you to share the technical instructions with us? Moira? Okay, I would suggest we start with the presentation by Miljan, and Chorus Call will give us the technical instructions to ask your questions later. Miljan, please.
Thank you, Bernd. Good morning to you all, and a warm welcome to Holcim's 2026 Q3 Trading Update Analyst and Investors Conference. Steffen and I are pleased to be presenting our numbers to you today, and of course, we look forward to taking your questions afterwards. As you have seen, after a very strong first half, our momentum accelerated in Q3. Our organic growth for the first nine months was 5.2% in net sales and over proportional 11.8% in recurring EBIT. Better still, in the third quarter, we entered a new phase of double-digit growth in Swiss franc for both net sales and recurring EBIT that we expect to persist into future quarters. In Q3, we grew net sales by 15.5% in Swiss franc and recurring EBIT almost 17% thanks to a healthy balance between inorganic and organic growth.
This positive momentum in Q3 help drive a year-to-date expansion in our recurring EBIT margin. In August, we also entered into agreement to acquire Fermacell, an established European provider of walling and flooring solutions. We will discuss this later on. Building on our strong nine-month performance, we are upgrading our full year recurring EBIT guidance for the second time after the increase at H1. We now expect 10%-12% organic growth with further increase in our margin year- on- year. Turning to the regional highlights now. As you can see in Europe, there was a robust net sales development driven by Germany, Greece, Romania, Spain, and also Switzerland. A 5.1% organic growth in recurring EBIT was driven by a strong execution on commercial excellence, cost discipline, and of course, impeccable execution of our strategy NextGen Growth.
In addition to our highlights, which I will say more shortly, we saw a good momentum in circular construction with more than 30% growth in the volume of recycled construction and demolition materials. The outlook is positive thanks to our strong infrastructure pipeline from roads and tunnels to power generation. Our integration of Xella is now in full execution. Here, we confirm our expectation of achieving EUR 60 million in run rate synergies in year three. In LATAM, we delivered 6.2% organic growth in net sales in the first nine months, driven by Mexico and Central America. Driven by our operational excellence resulting in positive price over cost, our recurring EBIT margin was around 30%. We continue to invest by opening new branches of Disensa to expand our network, which now stands at more than 2,460 stores.
Also, alternative fuel substitution is increasing in the region, reducing our exposure to energy price volatility. For example, our thermal substitution rate in Costa Rica is now above 60%. For the outlook, there is a strong backlog of infrastructure projects across the whole region, and Pacasmayo integration is in full execution with synergies of $40 million in year three confirmed. Going to Asia, Middle East, and Africa (AMEA). Here, net sales were up nearly 8% and recurring EBIT up more than 22% organically. We also saw the margin rose 100 basis points from a year ago to above 26% with positive price over cost. In our Fujairah cement plant in U.A.E., we successfully launched a pilot project that is now safely and successfully capturing CO2 and transforming it into the solid rock using natural processes and breakthrough technology developed by one of our value chain partners.
This is really the first live condition carbon capture and underground mineralization pilot in our industry. The positive outlook in this region is supported indeed by robust government funding for infrastructure construction across North Africa, all the way to Australia. We are also seeing investments picking up in Morocco as the country looks ahead to co-hosting the 2030 Football World Cup. With that, I would like to hand it over to Steffen to talk through the financial details. Steffen, to you.
Thank you, Miljan, and a warm welcome to you all also from my side. It is always a pleasure to be here with you. Turning first to the net sales bridge, you can see that we had strong organic growth of 5.2% in the first nine months, representing almost CHF 590 million . Total sales in Swiss franc were up even more strongly as the positive net M&A contribution offset a small foreign exchange translation effect of 1.4%, or CHF 170 million .
The impact from FX translation has softened significantly throughout 2026, and it actually turned into a tailwind in Q3. Now, although we do not guide on FX, I always get this question, so I anticipate your question now, and I am going to try to tell that FX is expected to remain flat to slightly positive in Q4. Next, for recurring EBIT, we delivered double-digit organic growth of 11.8%.
There was FX translation effect of CHF 16 million , or 0.7%, and a CHF 91 million impact from divestments, mainly driven by Nigeria and partially offset by Pacasmayo, Xella, and our bolt-ons. EBIT growth was driven by strong commercial execution, as always, accompanied by operational excellence and disciplined cost management in the countries and at corporate level. Once again, we delivered positive price over cost in all our regions. As a reminder, this is the 18th quarter with positive price over cost for the group. Next, let us look at the progression of our recurring EBIT and recurring EBIT margin. The graph you see here shows a continuing margin expansion, again, driven by strong commercial execution, operational excellence, and disciplined cost management. As mentioned on several occasions before, we expect margin expansion on a full-year basis as well.
On the next chart, let's look at the regional performance. Organic growth in net sales was strong in each of LATAM and AMEA in the first nine months and remained at a good level in Europe in Q3. In Asia, Middle East, and Africa, there was excellent organic growth in recurring EBIT in the nine months to end September. The margin was 26.1% with 100 basis points increase, while we remain at a recurring EBIT margin of 30% in Latin America. The margin in Q3 in LATAM is actually up by 90 basis points year- over- year, showing a progressive increase. With that, I'm pleased to hand it back over to you, Miljan.
Thank you, Steffen. In August, we announced that we have signed the strategic value accretive acquisition of Fermacell, which is an established European provider of walling and flooring solutions with projected net sales in 2026 of around EUR 430 million . This is fully in line with our NextGen Growth 2030 strategy to invest in the most attractive markets. The company's premium brands will expand our high-value Building Solutions, and we do anticipate that run rate EBITDA synergies of around EUR 22 million will be achieved in year three. Fermacell's net sales are well-balanced between new builds and energy-efficient repair and refurbishment market, which is already worth approximately EUR 250 billion in Europe. Closing is expected in the first half of next year and, of course, is subject to customary condition and clearances. Let's take a closer look at the business now. The headquarter is in Dusseldorf, Germany.
The Fermacell business has around 1,000 employees, of which more than 250 are in sales, which is adding to our specification and cross-selling capabilities. It is present in 13 of Europe's most attractive markets with six state-of-the-art production sites and R&D center. The acquisition expands Holcim's offering in European walling, flooring, and fire protection markets. On the next slide, you can see how the addition of premium Fermacell brand enhances our integrated end-to-end Building Solutions offering from foundation and flooring to walling and roofing. Together, the combination of these brands amount to our genuine building systems for our core customers. For the NextGen Growth 2030, we are delivering superior performance and margin expansion focused on the five key drivers. We are scaling up our sustainable offering powered by premium brands. We are accelerating initiatives for decarbonization and circular construction, which is driving profitable growth for Holcim.
A key part of NextGen Growth 2030 is expanding high-value Building Solutions, and with our impeccable track record of value-accretive M&A to focus on the most attractive markets. All of this is driven by our deeply embedded performance culture. Now let's look at this more in details. Our sustainable offering, driven by our premium brands, ECOPact, ECOPlanet, and ECOCycle, continues to be in demand. These premium brands are being used at the scale on large-scale projects. One example shown here is the National Athletic Center in Hungary. The revamped stadium deep foundation and underground structures were all built with ECOPlanet to ensure stability, durability, and a long lifespan. During the first nine months of the year, we increased the volume of recycled construction and demolition materials by a third, accelerating our circular construction technology, ECOCycle. Our number of circular construction hubs stands at 136 globally.
This footprint now stretches well beyond Europe, with hubs in countries like Australia and China and evolving frameworks in Mexico, Morocco, and Ecuador. Let's turn to a couple of slides on our growth-focused capital allocation, which is well-balanced between organic and inorganic investments. This helps us to advance our sustainable offering for our customers. On the organic side, I'll take you to these two recent CapEx projects. The one on the left is a calcined clay production line, which is the first of its kind in Czech Republic, and which we launched in September, and for which we have received funding from Modernization Fund of the Czech Republic's Ministry of the Environment. On the right-hand side is our new state-of-the-art cement production facility in the U.K., which will enable Holcim from early next year to offer the first cement with recycled construction demolition materials inside for the U.K. market.
Both projects enhance our customer offering with a very attractive paybacks of around 5.5 and 7.5 years respectively. On both of these projects, we will utilize Holcim's Predict family of algorithms to optimize maintenance, quality, and also the whole manufacturing process. in M&A, we closed 11 value-accretive transactions in the first nine months of the year, of which 10 were acquisitions and one was a divestment. To strengthen Building Solutions, Holcim made four acquisitions in France, Romania, and Peru, Cementos Pacasmayo. Building Solutions expanded with six acquisitions in Belgium, France, Germany, and New Zealand, as well as the acquisition of Xella. During the third quarter, we also entered, as you know, into the agreement to acquire Fermacell, and we also signed an agreement to divest our business in the Philippines. Now turning to the rest of the year.
We are once again upgrading our 2026 full year guidance for organic growth in recurring EBIT after our strong first nine months of the year. We see net sales at the high end of our NextGen Growth target at around 5% organic growth. We are upgrading our recurring EBIT guidance and now expect to grow organically by 10%-12%, which is up from around 10% previously in H1. This will be accompanied by a further increase of our recurring EBIT margin, free cash flow before leases of around CHF 2 billion, and we continue to grow in recycled construction demolition materials by more than 20%. Bernd, you can now open it for questions.
Thank you, Miljan. We now turn to our Q&A and open the lines for questions. Moira, can you please again share the instructions with us? Thank you.
Anyone who wishes to ask a question may press star and one on the telephone or on the virtual HD [Web] keypad on the screen. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Webcast viewers may submit their questions in writing via the relative field. Anyone who has a question may press star and one at this time.
Thank you so much, Moira. The first question comes from the line from Julian Radlinger from UBS. Good morning, Julian.
Hey, good morning, guys. Thank you so much for all of this. A couple questions from me. The first one is a short-term one. 10%-12% organic EBIT growth for the full year. Can you talk a little bit about what factors would lead you to achieving either the upper or the lower end of that range with only a couple of months left in the year?
Second question, more on 2027. Based on everything you are seeing at the moment and knowing how much you are hedged and so on, what kind of cost inflation would you expect for 2027, thinking about diesel prices, gas, power, et cetera? What kind of cost inflation would you expect, and what kind of price increase would you need to be able to offset that next year? Then maybe just a third one on LATAM. It looks like you had slightly negative volumes there once again in Q3 after the same in Q2 already.
It seems a bit like in Mexico particularly, this kind of construction recovery that we have been talking about last year has not really materialized properly yet this year. I would love to get an update from you guys on whether you expect that to come in the next few quarters or what the status is there. Thank you.
Good morning, Julian. Thank you for your question and thank you for joining us. Steffen can tackle energy question. I will go with your first and last question. On the short-term guidance, the only risk is weather in December. We really do not know if the winter will come early this year. But October, November, I am confident that we are on track as what we have seen in the first nine months. I f you are asking on the lower side or higher side, it is simply one a month, half a month in December. On the LatAm volumes, Mexico had a really strong quarter. Projects are coming. We are securing, we are tendering, and we are seeing more and more of these projects, railroad, water, energy. Maybe the speed, I would expect actually speed to significantly accelerate next year.
The 2 countries where we have seen softer market conditions in LATAM is Argentina and Colombia. I am more optimistic on Colombia. Now the elections are over. The new government is already very aggressively announcing the new infra spend. They want to address residential shortage. If you remember, we did sign the agreement to acquire Cemex assets in Colombia, where we will increase our market share significantly. I am very optimistic about Colombia in 2027. I will stay conservative on Argentina. Fiscal policy seems to be in a better shape, but I am not sure when all this infra residential spend will come. Colombia probably could be significant upside for 2027.
Julian, good morning. Few items on cost. I would say raw material, quarry, distribution, we are probably going to look at an inflation of mid-single digit. Energy, mid to high single digit next year. Hedging ratio currently above 70%. I would also say that fixed cost is going to be a tailwind, like we have done. We are very focused on that, headquarter as well as operations. T hat should be a low single-digit tailwind. If you put all of that together, a mid-single digit price increase is sufficient for a significant price over cost because the price increase is, of course, on a very different basis than the individual cost increases. T hat gives you the formula pretty much going into next year.
I will just add.
Sounds like a good.
I will just add on Steffen's comment on the pricing. Look, we have demonstrated that we have best-in-class pricing discipline at Holcim. However, pricing is one component. What has been driving margin expansion, and we have shown this in Europe in the full year results, is other things than pricing. Our cost discipline, our operational excellence, scaling up sustainable offering, where we do have a modest price premium, but we do have a cost upside. Then every investment we make in decarbonization and also circular construction, this is driving profitable growth. On top of that, M&A. In the last five years, we did more than 100+ value accretive deals, where we are investing in the companies with the high synergies, and we are divesting less attractive markets. All of that plus pricing will help us overcome whatever we will face in the future.
Just to summarize it, once again, what you saw this morning, the results that we publish, it clearly demonstrate that Holcim's business model is really resilient across all market conditions and economical cycles.
Thanks very much, Miljan, and I was going to say to Steffen, that sounds like a pretty good formula to have in mind for 2027. Thanks very much, both of you.
Thank you.
Thank you.
Thank you, Julian. The next question comes from Zaim from JP Morgan. Good morning, Zaim.
Morning. Thanks for taking my questions. The first one is just on the Europe margin decline that we are seeing in the nine months in Q3. Could you maybe spit out how much of that was due to scope and like for like? A word on Latin America. I think you mentioned that the alternative fuels rate is increasing. Maybe just within this division, where are you now? Where can you get to, and how much savings you think that will provide? Lastly, if I could squeeze in one on the Philippines divestment, if there is any updates you could provide there. Many thanks.
Good morning, Zaim. Thank you for your questions, and thank you for joining us. On the EU margins, well, basically, it is part of this integration of Xella. This is an outstanding company. We are now in full execution of integration, and we want to do more in a shorter period of time. Company is doing well, so why spread these integration costs over a year and a half? We want to do it as soon as possible. Steffen, you can elaborate on that later on. On LatAm and alternative fuels. Look, just one example. I was recently in Costa Rica. Alternative fuel story was for Europe, and September was the best month I have seen ever when it comes to alternative fuels in Europe. We are achieving really next level of usage of alternative fuels. Even in developing markets like Costa Rica, we are 60%+.
We can probably go closer to 80% in the next two years. Alternative fuel in this country, in Costa Rica, is between 30% and 40% lower than traditional fossil fuel they use, which is a petcoke. P otential upside is indeed significant. The last on Philippines, we expect nothing has changed. We are progressing. We are getting all the regulatory approvals, H1 is the closing. Maybe if you want to expand on the margins in EU.
Yeah. Thanks, Miljan. Hey, good morning from my side as well. Europe margin would have been slightly up by probably 2 percentage points. As you mentioned, you are absolutely right. It has to do with scope M&A, the biggest one here being Xella, who as Miljan completely correctly said, we are anticipating integration cost. We are accelerating the integration. We are pulling a lot of things forward. This is going extremely well. Also very encouraging, the margin in the third quarter of Xella, the profit margin, are now already coming up to a business plan level. T his is all very encouraging. It is basically what we expected it to be at this point in time, or slightly better even.
Perfect. Thanks a lot.
Perfect. Thank you. The next question comes from the line from Ben Rada Martin from Goldman Sachs. Good morning, Ben.
Excellent. Good morning, Miljan, Steffen, and Bernd. Thank you for the questions this morning. I just had two questions, please. Maybe the first on pricing into 2027, those mid-single-digit comments that you made previously. Are there any geographies which you think will contribute more in 2027 from pricing relative to that target? I am not sure if there is geographies with greater energy inflation or maybe more of a focus on value over volume worth highlighting. The second question would just be on Solutions M&A. I guess with both Fermacell and Xella now announced, I would be interested if the Europe Solution strategy is broadly complete, and whether, when we are thinking about the progress towards the 50% of sales from Solutions, which geographies we should keep in mind to make up the rest of that kind of growth. Thank you.
Good morning, Ben. Thank you for joining, and thank you for the question. On pricing, yes, we will have some geographies, maybe Egypt or Argentina, where we will see overproportional price increases. Ben, value over volume remains our key priority. I think mid-single digit, the aim is good. We have proven in the past that when it comes to pricing discipline, we are the best in class. I am confident that pricing increases planned for 2027 will offset everything else, cost inflation, and so on. On Xella and Fermacell, well, I think now we do see few white spots in Europe where we can build up on this walling offering.
We are looking into it, but for me now, it is going to be about LatAm. It is going to be about expansion of the Disensa, where we will be bringing Holcim in-house produced products from flooring, walling, sealants, adhesives, waterproofing, roofing. Ben, remember, our goal is to reach 5,000 stores by 2030. We are now slightly below 2,500. This will drive the momentum in Building Solutions in LatAm.
Very helpful. Thanks very much.
Perfect. Thank you so much. The next question comes from the line of Cedar Ekblom from Morgan Stanley. Good morning, Cedar.
Good morning. Thanks very much for taking my question. I wanted to ask a little bit about growth and capital allocation in the medium term. Last year at your capital markets event, you spoke about potentially CHF 4 billion-CHF 6 billion, which you could allocate to strategic M&A or buybacks. By my count, you have done about half of that. If I look at the markets that you are in now, if we are thinking about larger, bigger deals, it is not obvious to me that there is anything left for you to acquire in LatAm and in Europe. You have done a lot on the light side of things, but I do not know if there is anything big you can do on heavy sides.
My question is, when we think about where your multiple is relative to other heavy side building materials businesses, not just in Europe, but also on a global basis, and we think about the cash generation, and we think about the flexibility on the balance sheet, is there any reason why you wouldn't go and step into a market that you're currently not present in? Say, for example, the North American market, which I know we obviously had the separation of the business last year, but the North American market remains a very attractive market, high margins, long-term structural growth drivers, and it doesn't escape me that you're not in that market anymore, and your multiple's in a position today where maybe stepping back into that market is an opportunity. I'd just like to hear your perspective on where you allocate strategically going forward. Thank you.
Hey, good morning, Cedar. Thank you for that question. I'll start on M&A front. What do we have on heavy side in Europe? I am still very excited about the opportunities we have in aggregates and recycling of construction and demolition materials. We talked about this many times. These number of deals that we did in aggregates in Eastern Europe, where we have consolidated our position in Greece, Bulgaria, Serbia, Croatia, Romania, even in Poland. Now these businesses are generating over proportional EBIT margins, and they are growing. I do see many opportunities for further consolidation in aggregates. West Europe, it's going to be more into the recycling of construction demolition materials, and that's Belgium, U.K., Germany, France. We have established ourself, Switzerland.
We have already established ourself as a market leader, but it's a highly fragmented market, and we see great potential for consolidation and also for synergies. In addition, I like a part of the whole offering. We have expanded in insulation with acquisition in Poland and previously in France. T his is the area in Building Solutions where we still can grow. At the moment, no plans to go back to North America. All valid points. I fully agree with you. But there are so many opportunities in Europe, in LatAm, that I would like to focus our efforts, our capital allocation on these priorities where we can see very high synergies, high ROIC, and relatively attractive paybacks.
Very helpful. Thank you so much.
Thank you so much, Cedar. The next question comes from the line from Martin Hüsler from ZKB. Good morning, Martin.
Good morning, everyone, and thanks for taking my question. I have two. First, maybe talk a bit about your free cash flow guidance for the full year. I know you do not give out numbers after nine months, but maybe an indication where you stand here. Obviously, we can see that the EBITDA was up EUR 200 million. Maybe your thoughts on why it should not be higher than last year, and maybe can you remind us on your CapEx guidance for this year? That is the first question.
CapEx is around CHF 1 billion, but I will let Steffen.
Yeah. Hey, good morning, Martin. Look, we always keep this guidance for the cash flow. Year- to- date, we are tracking well, basically pretty much in line with last year. But there are always timing topics at year-end. You could have tax payments in January. You could have them in December. Since free cash flow is both a KPI that covers a time frame, but a snapshot date, we keep the flexibility at year-end. W e have done this in prior years, too.
We kept the cash flow guidance where it is so that we have the flexibility at year-end to move the money and not put ourselves under pressure in working capital. Also, we are a cash-rich company. We do not need to squeeze, so we take this with a very cautious approach. But your math, of course, is right. EBIT is up. Cash should not be under pressure, and it is not.
Thanks a lot. Makes sense. The second question I have, obviously very strong development also in Europe, I would say, but maybe some words on difficult markets such as France and U.K. Do you see there any green shoots, maybe on pricing, maybe on new projects coming on stream, or should we expect those markets to remain in a very difficult position?
Yes, Martin, you are right. U.K. was especially difficult this year. I do see a light at the end of the tunnel, and I don't expect a massive recovery in U.K. But what is good for us is that we did manage to secure some big, large projects, Sizewell C, Lower Thames Crossing. These projects have already started, some of them. T his will help us reduce this softness in 2027. On France, pricing in France was excellent this year. This was one of the positive upsides. D espite the relatively softer markets, especially residential, we did have a good pricing momentum. Team has done a good job on pushing sustainable offering. We did invest in decarbonization and circular construction. This is driving profitable growth, and we did some very value-accretive acquisition that will help us next year in 2027.
Okay, thanks a lot.
Perfect. Thank you, Martin. The next one in the line is Luis Prieto from Kepler Cheuvreux. Good morning, Luis.
Thanks, Bernd. Good morning, and thanks Miljan and Steffen for taking my questions. Super quick three, I promise. My usual question is if you would be able to break down the organic growth building block of your recurring EBIT bridge between price over cost and volume. Rough idea would be super useful. The second one is regarding the fact that we have seen diesel prices go up a lot so far this year in developed markets. This is being an issue, obviously in North American aggregates, which is evidently no longer your concern today. But are we seeing anything remotely similar in your markets, in Europe in particular? My final question, just detail. Coming back to alternative fuels for a moment, what is the thermal substitution rate in Europe and at group level? Not just Costa Rica or Latin America, Europe and group. Thank you.
Good morning, Luis. Thank you for your question. Start at the simple one, alternative fuel. Europe is at 70%. Obviously, I mentioned September was really a record month. We want to hit 90% by 2030, and group should be around 50% by 2030. We communicated this already as a part of our KPIs for 2030. On the diesel price, Steffen, you can tackle price over cost bridge.
Yeah.
On the diesel, I am spending now more time on logistics topic. I do believe, honestly, that the potential for optimization in logistics is significant. We have communicated this as a part of our AI initiatives, and we do see the biggest impact coming from production and also from logistics. Opportunities are really endless when it comes to the fleet utilization, backhauling, when it comes to the cost reduction per ton, per kilometer, when it comes to waiting time, and this is something that will help us offset diesel volatility. Yes, we have seen in September, diesel price went up. We are managing to reduce the impact thanks to the optimization, what we are doing, and also passing this on to customers.
Hey, Luis. Good morning. For the EBIT growth bridge, you saw we have 6% in Swiss franc, 12% organic. Between that is M&A and foreign exchange. Now, if you look at the organic piece, price over cost is significantly price driven. There's almost no volume impact in here. We can say today that it's predominantly pricing. But what Miljan said before, it's not just pure price increases, it's the portfolio. It's the growth of ECOPact, ECOPlanet, it's the construction demolition materials. It's the whole shift to higher value offering, all of this together. These products also drive a higher margin because we're producing them very cost efficiently. I t's not just price, it's the whole portfolio mix that is changing towards a higher value margin portfolio. But roughly, you can say that it's all driven by that, and volume has a very, very minor impact.
Super clear. Thanks a million.
Thank you, Luis. The next caller is Ephrem Ravi from Citigroup. Good morning, Ephrem.
Good morning, sir.
Thank you, Bernd. Just two questions only left. Firstly, just looking at the organic growth in Building Solutions, it looks a lot weaker than the group. It hasn't really picked up in Q3 either. It's about 4%. Almost all the growth has been driven by inorganic. Do we see organic growth kind of overtaking inorganic kind of contribution to growth in the medium term? Or is mid to low single-digit growth in Building Solutions what we should expect as long as the overall construction market kind of remains weak? Obviously, building materials are growing much faster, so I guess that's cost plus pricing, or cost kind of being passed on into pricing, while there is less probably for Building Solutions. Second question, just on LatAm.
Congratulations on the 90 basis points year-on-year margin improvement, which was probably earlier than people anticipated after the acquisitions in there. Should we kind of expect everything else being equal, sort of 30%+ margins in LatAm next year as historically has been the case? Thank you.
Hey, good morning, Ephrem. Thank you for the questions and thank you for joining. Regarding LatAm, yes, it came earlier than expected with all the acquisitions and everything. I think we could see upside in Colombia next year that will help us go above 30%, but target for LatAm is to be around 30%. We want to invest heavily in Disensa. Obviously, this is for us to grow over proportionally. I am confident that success story of LatAm will continue in 2027. On OG in Building Solutions, Steffen?
Yeah, look, your numbers are of course right, and your suspicion or your outlook is right, because by far the biggest pieces of Building Solutions going forward are going to be Xella and Fermacell. Going forward, you will see a much stronger organic contribution from that you see today in scope. T he composition of that segment and the mix of the businesses in there is fundamentally going to change once we have Xella and then also Fermacell under our belt for a year, and we'll report that in organic. Then you'll probably see the growth I don't want to speculate now, but you will see towards a high single-digit growth once these things are under our belt. Inorganic.
Thank you.
Perfect. Thank you, Ephrem. The next question comes from the line from Arnaud Lehmann, Bank of America. Good morning, Arnaud.
Good morning, gentlemen. Thank you so much for taking my questions. I have three, if I may. Hopefully, they are quite short. Firstly, for scope effects acquisitions, can you give us an indication of the kind of embedded 2027 contribution to sales and EBIT? That's my first question. Secondly, just a technical question on the full-year guidance. You said the underlying trends are unchanged in October, November. Obviously, we will have to see the weather in December. Also, the corporate costs were quite high last year. Theoretically, you get a boost in Q4 year-on-year from normalized costs. Shouldn't you see some level of acceleration in like-for-like EBIT growth? Related to that, if you could give us a guidance for the full-year corporate costs. Lastly, just to follow up on M&A. You have acquired the business in Peru.
You sold Brazil, I think that was back in 2021 or 2022. We know some assets are coming back in Brazil for sale. Would you be interested to have a look at those? Thank you very much.
Hey, good morning, Arnaud.
Morning.
Thank you for your question, and thank you for joining us this morning. Regarding Brazil, no interest. We have exited, you are right, already five years ago. No intention to go back in Brazil. Pacasmayo, a great acquisition. You saw in H1, they reported EBITDA growth of 34%, net sales growth of 15%. They are also publishing next week, so you will see more from that. We are now fully focusing on integration. I think probably we could even see upside in the synergies, and Peru is strategic market for us for the long term. Steffen, on the scope and full year.
Yeah. Thanks, Miljan. Hey, morning, Arnaud. Scope for next year, roughly think about CHF 900 million to CHF 1 billion in sales. Think about CHF 120 million to CHF 150 million in EBIT. Again, depending on how fast we integrate these companies. There will be a bit of wiggle room there, but that gives you the picture. Xella is going to come three months into scope and the rest into organic because that is when it was acquired, but the others have a bigger impact. Corporate cost. When we did the spin-off, our corporate cost in relation to sales was some 3.3%, and by the end of last year, we had brought this to 3%, and by the end of this year, you will probably see the percentage between 2.4% and 2.6%.
You see we are on this trajectory, and our aim by the end of next year is to be short above 2%, let us say 2% to 2.2%. If you make the math, that gives you roughly CHF 440 million corporate cost, CHF 430 million, CHF 440 million by the end of the year. This is not just the overhead, this is also things like insurance and so on. There is also a bit of uncertainty in the last month, but CHF 430 million, CHF 440 million should do it.
Very helpful. Thank you very much.
Perfect. Thank you so much. These were all the questions from the line. Jon Bell from Deutsche Bank sent us a question by email. He is asking, "Is the Disensa platform currently present in all of your Latin American countries? Do you expect a further rollout? In which countries do you expect most expansion potential, and where will you be most aggressive?"
Yeah, Jon, we are present in all the countries we operate. In Peru, it is called DINO, but it is the same platform. The biggest expansion by far, Mexico. Has to be Mexico. This is our biggest market. This is where we have a well-established production footprint, and my expectations are that Mexico will go over proportionally when it comes to Disensa expansion.
Perfect. Thank you so much, Miljan. These were all the questions for today. Thank you so much for your active participation. Miljan, do you want to close with some closing remarks?
Hey, thank you all for joining us this morning. As you can see, we are very proud of our Q3, of our year-to-date performance. Now we are entering also exciting phase. We are working to finish this year on a very strong end. We do have integration of Xella and Pacasmayo happening as we speak. We are closing Fermacell and acquisition in Colombia in Q1, H1 next year. So plenty to do. Holcim is indeed stronger than ever. This is demonstrated by our industry-leading margins, and I would like to say one big thank you to all my colleagues, 50,000 of them making this company what it is today. Thank you.
Thank you, Miljan, and obviously also a big thank you for participating in today's conference call. The investor relations team is more than happy to support you if you have any further questions. And obviously, we are also very happy to see many of you in the coming weeks. Thank you.