Sika AG

Sika AG is hosting an investor day at its largest adhesive factory in Duedingen, Switzerland, outlining group-wide growth initiatives centered on its Adhesive Systems technology. CEO Thomas Hasler said the acquisition of Akkim has created a highly scalable platform that will allow Sika to double Akkim's sales within five years. The company said its Fast Forward digital transformation program remains on track to deliver CHF 80 million in benefits in 2026 and will drive a profit uplift of CHF 150 to CHF 200 million through to 2028. Adhesive Systems is one of Sika's five core technologies and is used across most of its eight Target Markets, serving as a major growth driver in both construction and wider industrial applications. The event also includes a tour of the Duedingen manufacturing site, showcasing production of high-performance adhesives and sealants.

Sika AG's unsponsored ADR has been upgraded to a Zacks Rank #2 (Buy), placing it in the top 20% of the more than 4,000 stocks covered by the Zacks rating system in terms of earnings estimate revisions. The upgrade reflects an upward trend in earnings estimates, which Zacks says is one of the most powerful forces impacting stock prices. The company is expected to earn $0.92 per share for the fiscal year ending December 2026, representing no year-over-year change, while the Zacks Consensus Estimate has increased 2.2% over the past three months. Zacks noted that only the top 5% of covered stocks receive a Strong Buy rating and the next 15% receive a Buy rating, so the placement indicates superior estimate revision characteristics. The rating change is essentially a positive comment on the company's earnings outlook that could have a favorable impact on its stock price.

Sika has closed its acquisition of Akkim, a leading Turkish manufacturer of adhesives and sealants, strengthening its global position in this segment. Akkim generated net sales of approximately CHF 220 million in 2025 and serves customers through a distribution network focused on Eastern Europe, Central Asia, the Middle East, and North Africa. The deal adds a comprehensive product portfolio and expanded production capacity, which will support a manufacturing and export hub for adhesives and sealants. Christoph Ganz, Sika's Regional Manager EMEA, said the acquisition marks an important milestone and welcomes the Akkim team. Sika, a specialty chemicals company with 33,700 employees and 2025 sales of CHF 11.20 billion, operates in 103 countries and over 400 factories.

Sika has successfully placed its inaugural hybrid capital bond totaling EUR 1 billion, split into two EUR 500 million tranches. The first tranche is a 30NC5.75-year bond with a 4.375% coupon, first call date on February 26, 2032, and first reset date on May 26, 2032, issued at 99.397% with a yield of 4.500%. The second tranche is a 30NC8.75-year bond with a 4.875% coupon, first call date on February 26, 2035, and first reset date on May 26, 2035, issued at 99.153% with a yield of 5.000%. The bonds were placed into the European institutional fixed income investor base with Citigroup acting as Global Coordinator and BofA Securities, Citigroup, and UBS Investment Bank as active bookrunners, and will be listed on the regulated market of Euronext Dublin. The transaction is structured to receive 50% equity treatment at S&P and demonstrates Sika's commitment to the A- issuer rating by S&P, with the outlook having been revised from Negative to Stable on Monday, August 17, 2026. Net proceeds will be used for general corporate purposes including financing of bolt-on acquisitions and refinancing of existing financial indebtedness.

Sika has upgraded its full-year revenue growth guidance to 3% to 6% in local currencies, up from a previous range of 1% to 4%, following a 4.0% increase in local-currency sales in the first half of 2026. Reported sales reached CHF 5.59 billion, down 1.5% in Swiss francs due to a negative foreign-currency effect of 5.5%, while organic growth was 2.9% and acquisitions contributed 1.1%. EBITDA came in at CHF 1.06 billion, with the margin edging up 10 basis points to 19.0%, and the company said it is comfortable with current consensus CHF EBITDA expectations. The Fast Forward program remains on track to deliver CHF 80 million in savings this year, and Sika reaffirmed its medium-term targets under Strategy 2028.

The global methyl methacrylate adhesives market is projected to grow from USD 1.76 billion in 2025 to USD 2.46 billion by 2030, at a CAGR of 6.9%. Growth is driven by rising demand in automotive, construction, and wind energy sectors due to the adhesives' high strength and fast curing. The two-part pre-mix system segment is expected to hold the largest market share, favored for its reliability and adaptability. Asia Pacific leads the market, fueled by rapid industrialization in countries such as China, India, Japan, and South Korea. Key players include 3M, Henkel, and Sika AG.

The Swiss stock market ended lower on Thursday, with the benchmark SMI losing 46.96 points or 0.37% to close at 12,553.19. Rising inflation and a surge in coronavirus cases across several countries weighed on sentiment, while data showing a 1.5% monthly drop in Swiss exports during October added to the negative mood. Among major decliners, Logitech fell 2.46% and Holcim dropped 2.33%, while Credit Suisse and UBS Group both shed about 1.75%. On the upside, Sika climbed 2.2% and Givaudan gained 1.26%. The trade surplus widened to CHF 4.409 billion in October from CHF 4.328 billion in September, and watch exports rose 4.8% year-on-year.