Vicat sees growth momentum continuing despite uncertainties

French cement producer Vicat expects growth momentum to continue in 2026 despite persistent macroeconomic and geopolitical uncertainties, banking on emerging-market strength and major infrastructure projects to offset limited visibility in the US and Europe, the company said in a statement Feb.16.

Vicat expects a gradual recovery in European construction markets from 2026, though visibility remains limited amid political uncertainty and upcoming municipal elections in France in March.

The residential construction market in France showed signs of stabilization in the second half of 2025 and is expected to continue its soft landing, with a moderate recovery anticipated from 2026 onwards, the company said in its full-year earnings statement.

In Switzerland, the market should continue to recover thanks to solid economic fundamentals and very low interest rates, Vicat said. Major infrastructure projects in France and Switzerland should bolster business, while the gradual integration of decarbonization costs is expected to support favorable price trends across Europe.

US outlook clouded

In the US, visibility for 2026 remains limited amid persistent macroeconomic and geopolitical uncertainties, Vicat said. A recovery in the residential construction market is only likely to materialize once mortgage interest rates have decreased, the company said. On the non-residential market, a slight recovery is expected, supported by a more favorable base effect from April onwards in an economic environment that remains resilient. Cement pricing should help absorb the impact of inflation, though the weakness of the dollar is expected to continue to weigh on the group's results, Vicat said.

Business in emerging countries should remain well-oriented despite persistent negative exchange rate effects, particularly in the Mediterranean region, the company said. In Egypt, growth is set to continue at a more moderate pace, driven by exports and an improving domestic market. In Turkey, despite the backdrop of persistent hyperinflation, momentum should remain favorable, supported by public spending and a positive base effect in the first quarter, Vicat said.

In Brazil, Realmix's contribution should support growth in cement volumes over the first part of 2026, the company said. In India, despite a positive base effect in the first quarter, visibility remains limited, with prices likely to remain volatile, particularly in the South, where competition is more intense. Senegal is expected to benefit from the full-year contribution of kiln 6, along with sustained momentum in the aggregates business, Vicat said.

"In a complex international environment characterized by headwinds and adverse exchange rate effects, the Group delivered solid results in 2025, following a record year in 2024," Guy Sidos, chairman and CEO of Vicat said. "The outlook for 2026 is positive, underpinned by the ramp-up of kiln 6 in Senegal, the integration of Realmix in Brazil, the TELT project and the first signs of a gradual recovery in France."

Vicat's cement volumes rose 3% in 2025 after rebounding in the second half, driven by a gradual stabilization in France, a sustained recovery in Switzerland, and strong performance in the Mediterranean region, which offset declining US volumes. Prices remained resilient across key regions, rising in most emerging countries, except India and Senegal, and holding steady in developed countries, Vicat said.

Platts, part of S&P Global Energy, last assessed the Platts CEMDEX Turkey price, reflecting Ordinary Portland Cement CEM I 42.5R (bulk), at $53.5/mt FOB Feb. 12.