Gypsum industry news

China: BNBM says that despite issues with the domestic real estate sector demand for wallboard had ‘remained relatively stable’ in the first half of 2024. It attributed this to retrofit activity, government changes to the housing market and infrastructure projects. Its operating income grew by 19% year-on-year from US$1.60bn in the first half of 2023 to US$1.91bn in the first half of 2024. Sales volumes of gypsum wallboard rose by 7% from 1092Mm² to 1168Mm². The company added that overseas sales had grown in the reporting period and its Thailand Gypsum Board project had started construction.

CNBM’s New Materials business division, comprising BNBM and other subsidiaries, saw its sales grow slightly but profit fell. However, CNBM’s group revenue and gross profit fell significantly due to the poor performance of its heavy building materials division.

Europe: Etex has reported a solid financial performance aligned with its 2024 forecasts, despite experiencing market contractions across Europe in the new build and renovation sectors. Revenue fell 4.2% year-on-year to €1.93bn, with a recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) decrease of 5% year-on-year to €377m. The company’s outlook for the rest of 2024 is a careful and regular evaluation in response to the current volatile market situation.

US: GMS recorded first-quarter sales of US$1.4bn in the 2025 financial year, which began on 1 April 2024. This corresponds to a 3% year-on-year rise from first-quarter 2024 financial year levels. Group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 16% to US$146m. During the reporting period, GMS increased its gypsum wallboard sales by 3%, to US$588m. It reported an overall rise in sales volumes, buoyed by 4% growth in single-family residential construction, offsetting declines in multi-family residential and commercial construction. President and CEO John Turner nonetheless announced a new US$25m/yr costs reduction programme, due to on-going ‘market pressures.’

Turner said "We continued to focus on the execution of our strategic pillars and adapting to shifting end-market demand, and are managing costs more firmly across the business. We believe the market pressures we faced this quarter will likely persist over the next several quarters, at least until the expected reduction in interest rates can positively impact demand for our products.”

Saudi Arabia: National Gypsum Company’s sales rose by 19% year-on-year to US$8.76m in the first half of 2024, Arab News has reported. Nonetheless, its net profit dropped by 18% to US$450,000.

US: Eagle Materials raised its sales in the first quarter of the 2025 financial year to US$609m, up by 1% year-on-year. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 5% to US$225m. The group’s Light Materials segment raised its sales by 2%, to US$248m, 41% of group sales. Its operating earnings grew by 5%, to US$103m. A rise in gypsum wallboard prices offset a 1% decline in sales volumes to 70.3Mm² of wallboard, while paperboard sales volumes rose by 10% to 91,000t. The segment also reported a drop in operating costs, including for energy.

CEO Michael Haack said “Our portfolio of businesses continued to perform well, despite adverse weather conditions during the quarter across many of our core markets. Underlying fundamentals in our markets continue to be favourable, and we expect demand for our products to remain steady for the balance of the year. In addition, despite some interest-rate sensitivity, residential construction activity remains resilient, given chronic housing-supply shortages and continued underlying demand strength. Our well-positioned balance sheet, significant cash flow generation and consistent, disciplined operational and strategic execution through shifting economic cycles position Eagle for another strong fiscal year."

Switzerland: Chemicals producer Sika reported sales of €6.08bn in the first half of 2024, up by 9% year-on-year. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 24% to €920m. During the reporting period, the company successfully integrated Germany-based MBCC. It also acquired US-based Kwik Bond and opened new production facilities in Peru and China. The company confirmed its Strategy 2028 targets for sustainable, profitable growth.

Sika CEO Thomas Hasler said "With our good operating result in the first half of 2024, we have shown that we are in an excellent position to gain market share even in challenging markets. Furthermore, our emissions reduction targets, aiming for net-zero emissions by 2050, have been validated by the Science-Based Targets Initiative (SBTi). This important achievement underscores Sika's commitment to sustainability and its proactive role in decarbonising the construction and automotive industries."

For the full year 2024, Sika forecast 6 – 9% sales growth in local currencies and an over-proportional increase in EBITDA.

Latvia, Lithuania & Estonia: Germany-based Knauf’s Baltic business generated a turnover of €108m in the Baltic region in 2023, up by 4% year-on-year. The company’s regional profit grew by 34% to €19.5m. Baltic Business Daily has reported that Knauf’s Baltic sales volumes declined, amid a contraction in the local building market, with new building permits down by 30% year-on-year in the first half of the year. Knauf raised its regional investments to €5.8m, while its personnel costs rose by 3% year-on-year. Nonetheless, the company’s energy costs fell by 19%, and its raw materials costs fell by 7%.

Germany: Chemicals company BASF's sales fell by 19% year-on-year to €37.3bn in the first half of the 2024 financial year (FY2024). Its earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 34% to €4.72bn. As a result, the company now anticipates full-year sales of €73 – 76bn in FY2024, down from the previously forecast €84 – 87bn. It revised its earnings forecast to €4 – 4.4bn, from €4.8 – €5.4bn previously. At the same time, it increased its anticipated reduction in CO₂ emissions for the year. It now expects to generate 17 – 17.6Mt of CO₂ from its operations, down from its previously forecast 18.1 – 19.1Mt.

France: Saint-Gobain reported sales of €23.5bn in the first half of 2024, down by 6% year-on-year from €25.0bn in the same period in 2023. The group reduced its capital expenditure by 5% to €583m. €255m (47%) of this was invested in new capacity, down by 7%. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 2% to €3.65bn from €3.74bn. During the reporting period, Saint-Gobain accelerated efforts to reinforce its profitable growth profile with acquisitions in the light and sustainable building materials segments in Australia, Canada, India and the Middle East. Saint-Gobain said that it exceeded 67% of operating income being generated in “high-growth geographies,” namely North America, Asia and emerging countries. It now expects “double-digit” operating margins in 2024, for the fourth consecutive full year.

Chair and CEO Benoit Bazin said "Our first-half results once again demonstrate the success of Saint-Gobain's new profile, reflecting the group's ability to adapt to different macroeconomic environments and to continue to outperform. The roll-out of our comprehensive range of sustainable and innovative solutions and the resulting enhancement in our mix, together with our decentralised organisation by country with accountability on commercial performance and on proactive cost management, have enabled us to deliver a new record operating margin and strong free cash flow generation. I am very grateful for our teams' dedication and their contribution to the group's consistent improvement in its performance."

US: GMS grew its sales by 3% year-on-year to US$5.5bn in the 2023 financial year. It attributed this partly to high volumes of multi-family residential construction. The group’s Canadian operations contributed US$660m (12%) of sales. GMS recorded adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of $616m, down by 7% year-on-year.

During the year, the company made three new acquisitions. It repurchased US$116m-worth of shares and refinanced its senior secured term loan to extend its maturity by seven years, to 2030.