Imerys S.A. (IMYSF) Q2 2025 Earnings Call Transcript

Imerys S.A. (IMYSF) reported resilient H1 2025 results, with comparable sales remaining flat and underlying EBITDA increasing by 1.7% for both Q2 and the full first half. This performance was achieved despite a softer Q2, which the company attributed to global uncertainty and weakened demand, particularly in North America, stemming from sudden and unpredictable U.S. tariff policy changes.

Analysis

Imerys S.A. delivered resilient financial results for the first half of 2025, characterized by flat comparable sales and a 1.7% year-over-year increase in underlying EBITDA. This performance reflects a divergence between a solid first quarter and a softer second quarter, where volumes were negatively impacted. Management explicitly attributes the Q2 slowdown to global uncertainty and weakened demand, particularly in North America, triggered by 'sudden and unpredictable U.S. tariff policy' changes. Despite these headwinds, the company maintained flat organic growth for the first half, which it considers a significant achievement. The results were also impacted by a negative foreign exchange effect, highlighting an additional challenge to its euro-reported earnings.

Key Decisions for Investors

• Investors should note the company's ability to grow EBITDA by 1.7% in H1 despite flat sales, indicating effective cost management or pricing power that could support valuation in a challenging macroeconomic environment.
• Closely monitor developments in U.S. trade and tariff policies, as management has identified these as the primary driver of demand weakness and volume softness experienced in the second quarter.
• It is prudent to assess the upcoming Q3 results for evidence of demand stabilization, particularly in North America, to determine if the H1 resilience is sustainable or if the Q2 softness marks the beginning of a negative trend.