Sika warns of lower sales growth due to Iran conflict
Sika CEO Thomas Hasler says annual sales growth may hit the lower end of its 1-4% target. Uncertainty from the Middle East conflict is weighing on the outlook.
The Swiss construction chemicals manufacturer SIKA AG-REG has adjusted its expectations for the year, signaling that annual results may trend toward the lower end of its previous outlook. This shift comes as a direct result of geopolitical instability in the Middle East, specifically the ongoing conflict involving Iran.
Based in Switzerland, Sika provides specialized additives for high-profile infrastructure projects, including the Grand Egyptian Museum in Egypt and the Elbphilharmonie Concert Hall in Hamburg. While the company maintained its 2026 guidance of a 1% to 4% sales increase in local currencies and an EBITDA margin between 19.5% and 20%, CEO Thomas Hasler noted that the macroeconomic environment has become significantly more volatile.
\"I feel confident with our 2026 guidance, on top line growth and the bottom line, that we are still in safe waters,\" Hasler stated during a recent interview.
However, the executive acknowledged that the optimism seen earlier in the year has been tempered by rising uncertainty.
\"Now, given the much increased uncertainty, its probably more towards the mid to lower side of our expectations.\"
The escalation of hostilities, including strikes involving the United States and Israel against targets in Iran starting February 28, has triggered a sharp rise in oil prices. This surge has renewed fears of persistent inflation and a potential slowdown in global economic growth. Consequently, shares of Sika have plummeted nearly 19% since the end of February, underperforming the broader European construction index, which has seen a 13% decline.
While Hasler confirmed that no existing construction projects have been halted or canceled yet, he warned that new developments could face delays if the regional conflict persists. The CEO also highlighted inflation as a primary concern, particularly the risk that central banks might raise interest rates further to stabilize prices, which could dampen demand in the construction sector.
