Half Year Financial Report 2025

Including:

•      Half-year management Report 2025

•      Condensed consolidated Financial Statements as of June 30, 2025

•      Statutory Auditors’ review report on the 2025 half-year financial information

•      Statement by the persons responsible for the 2025 interim financial report

Compagnie de Saint-Gobain

Tour Saint-Gobain • 12, place de l’Iris • 92400 Courbevoie • France • Tél. +33 (0)1 88 54 00 00 • www.saint-gobain.com

S.A. au capital de € 1 996 203 096 • 542 039 532 R.C.S Nanterre • APE 7010 Z

PRESS RELEASE

July 31, 2025 6:00pm

The worldwide leader in light and sustainable construction

FIRST-HALF 2025 RESULTS

New record margin and very strong operating performance

•       Sales up 3.4% in H1 2025 in local currencies

•       Record operating margin of 11.8%

•       Record EBITDA and operating income in local currencies, up 7.0% and 5.0%, respectively

•       Recurring EPS at a record level and 63% free cash flow conversion ratio

•       Strategic acquisitions for €1.7 billion in construction chemicals, with Cemix (Latin America), FOSROC (India and Middle East) and other selective acquisitions (Maturix, Interstar Materials, Soquimic, Isoltech)

•       2025 outlook confirmed: the Group expects an operating margin of more than 11.0%

Benoit Bazin, Chairman and Chief Executive Officer, commented:

“Our first-half 2025 performance once again demonstrates the strength of Saint-Gobain’s new profile, with growth in sales and earnings despite a certain wait-and-see environment in some markets. Asia and emerging countries continued to drive growth for the Group and Europe reported a further sequential improvement, while North America saw a slight decrease in sales. The integration of our recent acquisitions has enabled us to strengthen the quality of the Group’s profitable growth profile and benefit from balanced earnings across three geographic zones. Our decentralized operating model by country, with no direct exposure to customs tariffs, is key to the Group’s ability to withstand external shocks. Our country CEOs now oversee our entire range of solutions to accelerate the Group’s growth in each of its channels and end markets.

Despite a still contrasted macroeconomic environment and ongoing geopolitical uncertainty, I am confident that 2025 will be another successful year for Saint-Gobain, thanks to our dedicated teams: I applaud their commitment. At our Capital Markets Day on October 6, we will present the Group’s new ambitions as worldwide leader in light and sustainable construction, in terms of profitable growth and outperformance as well as value creation for all of our stakeholders.”

           Tour Saint-Gobain • 12 place de l’Iris • 92400 Courbevoie • France • Tel. +33 1 88 54 00 00 • www.saint-gobain.com                   1

A new profitable growth profile

The Group continues to outperform its markets thanks to the strength of its strategic position as worldwide leader in light and sustainable construction:

•       An unrivalled range of sustainable and innovative solutions based on integrated systems and an industry-leading low-carbon offer;

•       Strong positioning in construction chemicals, with €6.5 billion in annual sales (2024 pro forma for recent changes in Group structure). The integrations of Cemix in Latin America and FOSROC in India and the Middle East in the first half strengthen Saint-Gobain’s presence in high-growth markets;

•       A highly effective, proven operating model by country, further strengthened since July 1, with a fully regional organization to accelerate growth of our solutions country by country in each market segment (notably residential, data centers, hospitals, schools, infrastructure);

•       Balanced contribution to operating income from three geographic zones: around 35% from North America, 33% from Asia and emerging countries, and 32% from Western Europe. This balanced geographic profile has been achieved thanks to the rotation of around 40% of sales since 2018; 

•       A transformed financial profile: structurally higher margins, a free cash flow conversion ratio structurally above 50% and a two-fold increase in earnings per share since 2018.  

Group operating performance

Sales were up by 3.4% in local currencies and by 1.7% as reported, at €23.9 billion, reflecting the depreciation in most currencies against the euro in the second quarter (negative 2.8% exchange rate impact). The positive 3.9% impact from changes in Group structure mainly reflects four recent acquisitions strengthening Saint-Gobain’s profitable growth profile: CSR in Australia, Bailey in Canada, Cemix in Latin America and FOSROC in India and the Middle East. The optimization of the Group’s profile also continued with the effect of divestments, notably the pipe drainage business for buildings (PAM Building).

On a like-for-like basis, sales were down by 0.5%, supported by growth in Asia-Pacific, the Americas and High Performance Solutions, while Europe saw a smaller decrease. With a negative working-day effect of 1% over the first half, volumes were virtually stable at comparable working days (down 1.5% at actual working days), a clear sequential improvement on secondhalf 2024 (down 2.0% at actual working days and down around 3% at comparable working days). Prices were 1.0% higher thanks to disciplined execution in a slightly inflationary cost environment and to the added value that our comprehensive, sustainable and innovative solutions bring to our customers.

Operating income was €2,803 million, up 5.0% in local currencies (negative currency impact of over 3%) to a record high. The operating margin also hit a new record of 11.8% (versus 11.7% in first-half 2024), reflecting the strength of the Group’s strategic positioning and its very good operating performance, enabling it to outperform in an environment marked by a certain wait-andsee attitude linked to geopolitical disruptions.

Segment performance (like-for-like sales)

Europe: sequential improvement in sales and good margin resilience

Sales in Europe were down 2.2% over the first half, with volumes down 2.1% based on actual working days and down around 1% at comparable working days, an improvement on second-half 2024 (volumes down 3.1% based on actual working days and down around 4% at comparable working days), as construction markets stabilized or began to recover, depending on the country. The operating margin narrowed only very slightly to 8.5% (from 8.7% in first-half 2024) reflecting the downturn in volumes, but good cost management and price stability over the first half (prices up slightly in the second quarter).

-    Northern Europe edged up 0.4% in the first half, as the price effect returned to positive territory, with volumes virtually stable at actual working days and up by around 1% at comparable working days (owing to the negative 2% working-day effect in the second quarter). The UK and Eastern Europe reported growth, driven by customer demand for Saint-Gobain’s comprehensive range of solutions, offering customers differentiation and performance. Nordic countries also reported slight growth, led by Denmark and Finland, while Sweden and Norway were virtually stable. Germany was slightly down, affected in the second quarter by a certain wait-and-see attitude in the prevailing geopolitical climate and pending its stimulus package. Overall, sales for the Region were supported by the start of a recovery on the renovation market, which began to see the initial benefits of the rise in the number of existing home transactions and improved household purchasing power, whereas improved statistics in new construction typically take longer to filter through to the business.

-    Southern Europe, Middle East & Africa contracted by 4.0% over the first half (and by around 3% based on comparable working days), with a clear sequential improvement quarter after quarter (down 6.5% in fourth-quarter 2024, down 4.9% in first-quarter 2025 and down 3.2% in second-quarter 2025), after a low point reached in France in fourth-quarter 2024. Saint-Gobain continues to benefit from its renovation exposure and its comprehensive range of innovative solutions that meet both residential and non-residential construction needs. Saint-Gobain Solutions France oversaw the selection of 11 of the Group’s brands and services for the future University Hospital in Nantes, one of France’s biggest construction projects. France’s leading indicators are encouraging, with a recent rise in existing home transactions, growth in lending and the beginning of a recovery in housing starts after three years of decline. Spain saw further growth, while Italy was down against a high comparison basis. The Middle East and Africa delivered strong growth led by Egypt, which benefited from the Group’s recent investments to expand its range of local solutions.

Americas: slight growth in sales and record margin 

The Region delivered 1.3% organic growth, reflecting a slight contraction in North America and growth in Latin America. The operating margin reached a new record high of 19.7% (19.0% in first-half 2024), supported by rigorous pricing and cost management and despite the decline in volumes.

-    North America edged down 1.5%, owing to softness in the new construction market related to a still high interest rate environment, but which nevertheless remains at a satisfactory level, albeit below structural market needs. The Group was supported by its significant exposure to renovation (over 50% of sales) and especially roofing products, which maintained a good level driven by essential needs. In a more uncertain environment, the Group also benefited from its highly local business model, protecting it from the direct impact of tariffs. Saint-Gobain is extremely well placed to continue its outperformance, thanks to its comprehensive range of sustainable solutions, increasingly critical for adapting buildings to climate challenges. The Group also benefited from its leading position in Canada, reinforced by the recent integration of its local acquisitions. Additional local production capacity will gradually be opened in the second half of 2025, enabling Saint-Gobain to reinforce its competitive positioning and customer proximity in a structurally supportive market.

-    Latin America was up 10.4%, driven by further growth in Brazil – despite the comparison basis starting to become less favorable from the second quarter – and by the acceleration in Mexico during the first half. Mexico and all of Central America have started to see spillover benefits from the Cemix acquisition in construction chemicals. The other countries in the Region also enjoyed good momentum thanks to an enhanced offer and mix.

Asia-Pacific: sales growth and record margin

The Region delivered robust organic growth of 3.9% over the first half, driven by strong momentum in India and South-East Asia, which more than offset the contraction in the Chinese market. The operating margin hit a record high of 13.4% (versus 13.0% in first-half 2024), supported by volumes as well as good pricing and cost management.

India achieved further market share gains, with double-digit volume growth, driven by its comprehensive and innovative range of sustainable solutions. The May launch of India’s first lowcarbon plaster certified by an Environmental Product Declaration illustrates the Group’s pioneering commitment to improve sustainable building standards in the country. This milestone follows on from the arrival of the first Oraé^® low-carbon glass (42% less CO₂) on the Asian market in 2024. China was again affected by the slowdown in the new construction market over the first half, but outperformed thanks to renovation. Growth in South-East Asia wasled by Indonesia, the Philippines and Vietnam, which benefited from the Group’s investments in personalized digital distribution and from the rollout of new product lines. The integration of CSR is progressing well, in terms of both operational performance and the development of complete solutions for the Australian market.

High Performance Solutions (HPS): slight sales growth and resilient margin 

HPS reported like-for-like sales growth of 0.8% over the first half, supported by a good performance from construction businesses and Mobility, despite the decline in other industrial activities. The operating margin narrowed slightly to 12.0% (from 12.3% in first-half 2024) owing to lower volumes.

-    Businesses serving construction customers were up by 3.4%, lifted by the recovery in

Adfors’ reinforcement solutions exposed to construction markets in Central Europe and by growth in the Construction Chemicals business (up 30% as reported), driven by infrastructure projects and innovation to decarbonize the construction sector. The integration of FOSROC (India, Middle East and Asia-Pacific) – the acquisition of which was completed in February – is progressing well and establishes Saint-Gobain as a construction chemicals leader in India, where the growth dynamics are particularly promising.

-    Mobility performed very well (up 2.6%), benefiting from its customers’ different regional growth dynamics, its positioning on high value-added models and its innovation investments.

-    Businesses serving Industry (down 2.1%) were affected – particularly in Europe – by a certain wait-and-see attitude to investment due to geopolitical uncertainties, while emerging markets and North America held firm.           

1.      Calculated based on the weighted average number of shares outstanding (495,096,191 shares in H1 2025, versus 501,808,814 shares in H1 2024).

2.      Recurring net income: net attributable income excluding capital gains and losses on disposals, asset write-downs, amortization of intangible assets related to PPA, IFRS3 acquisition costs and other non-recurring items (material non-recurring provisions, impacts of hyperinflation, etc.). Two items have been removed from recurring net income: hyperinflation (-€23 million in H1 2025 versus -€37 million in H1 2024) and amortization of intangible assets related to PPA (-€146 million in H1 2025 versus -€103 million in H1 2024). Netted of related tax effects and non-controlling interests, the impact amounts to -€132 million in H1 2025 versus -€114 million in H1 2024.

3.      Capital expenditure = Investments in tangible and intangible assets.

4.      Changes in working capital requirement over a rolling 12-month period (see Appendix 4, bottom of "consolidated cash flow statement").

5.      Free cash flow = EBITDA less depreciation of right-of-use assets, plus net financial expense, plus income tax, less capital expenditure excluding additional capacity investments, plus change in working capital requirement over a rolling 12-month period.

6.      Free cash flow conversion ratio = free cash flow divided by EBITDA less depreciation of right-of-use assets. 7.    Investments in securities net of debt acquired: €1,701 million in H1 2025, of which €1,678 million in controlled companies. 

EBITDA came in at €3,818 million, a new record high. EBITDA includes non-operating costs of €50 million (€125 million in first-half 2024).

The net balance of capital gains and losses on disposals, asset write-downs and the impact of changes in Group structure represented an expense of €188 million (€164 million expense in firsthalf 2024). It reflects €32 million in asset write-downs essentially relating to site closures and disposals (€35 million in first-half 2024), €146 million in Purchase Price Allocation (PPA) intangible amortization (€103 million in first-half 2024 and €130 million in second-half 2024), and €10 million in disposal losses and other net business expenses (€26 million in first-half 2024).

Net financial expense was €304 million (€215 million in first-half 2024), reflecting the rise in net debt along with lower proceeds from cash investments.

Recurring earnings per share was stable at a record level of €3.63, with recurring net income at €1,797 million. The tax rate on recurring net income was 26%.

Capital expenditure represented €711 million (€583 million in first-half 2024). The Group opened nine new plants and production lines over the half-year period, focused on structurally high-growth regions and construction chemicals.

Free cash flow came in at €2,190 million, with a conversion ratio of 63% reflecting a good level of EBITDA and very good management of operating working capital requirement (WCR), which remained stable year-on-year at 23 days’ sales at end-June 2025.

Investments in securities net of debt acquired totaled €1.7 billion (€847 million in first-half 2024), primarily reflecting the acquisitions of FOSROC (India, Middle East) and Cemix (Latin America) in construction chemicals.

The Group carried out further share buybacks for €111 million at end-June and approximately €160 million at end-July (net of offsetting employee share creation). This reduced the number of shares outstanding to around 496 million at end-June 2025 from 499.5 million at end-June 2024.

Net debt was €12.8 billion at end-June 2025, reflecting €4.5 billion of acquisitions over the past 12 months (mainly CSR, FOSROC and Cemix), partly offset by good free cash flow generation. The net debt to EBITDA ratio on a rolling 12-month basis was 1.7 at end-June 2025 (versus 1.4 at end-June 2024).

Strategic priorities and 2025 outlook

In 2025 the Group will continue to implement the strategic priorities of its “Grow & Impact” plan:

1)  Strong execution of our operating initiatives focused on profitability and free cash flow generation

•       Constant focus on margin through management of the price-cost spread and ongoing productivity and industrial cost-saving initiatives;

•       Capital expenditure around 4.5% of sales, with strict allocation to structurally high-growth markets.

2)  Outperform our markets by strengthening our profitable growth profile

•       Enrich our comprehensive range of integrated, differentiated and innovative solutions offering sustainability and performance for our customers;

•       Leverage the full potential from the integration of recent acquisitions and continue to enhance the Group’s profile through value-creating acquisitions and divestments.

3)  Continued focus on our ESG roadmap as worldwide leader in light and sustainable construction  

•       Promote our positive-impact sustainable solutions – low carbon and with high recycled content – among our customers;

•       Extend the decarbonization of construction to the entire value chain, playing our full role as leader in light and sustainable construction across the globe.

Following the deepening of our local organization effective July 1 aimed at accelerating growth of our solutions country by country, the Group will now publish its accounts based on four Regions: Northern Europe, Southern Europe – Middle East & Africa, Americas, AsiaPacific. In the second half and for its full-year 2025 results, the Group will publish its accounts based on its new organization and provide equivalent figures based on its existing organization.

In a macroeconomic environment that remains contrasted, Saint-Gobain will once again demonstrate a very strong operating performance in second-half 2025. Assuming no major slowdown in global growth linked to geopolitical uncertainties, the Group expects the following trends:

•       Europe: a gradual recovery country by country;

•       Americas: a good level of activity to be maintained in Latin America and continued softness in new construction in North America amid still-high interest rates;

•       Asia-Pacific: growth led mainly by India, South-East Asia and the integration of CSR in Australia.

Saint-Gobain expects an operating margin of more than 11.0% in 2025

Main risks and uncertainties

The main risks and uncertainties that the Group could face in the second half of 2025 are those described in Section 6.1 “Risks factors” of the 2024 Universal Registration Document filed with the

French financial markets authority (Autorité des marchés financiers) under number D.25-0087 (the “2024 Universal Registration Document”). These risks factors remain applicable at the date of this report and have not changed significantly, except for the descriptions of the judicial and administrative procedures included in section 6.1.4 of the 2024 Universal Registration Document that are updated in Note 9 to the consolidated financial statements as at June 30, 2025.

Financial calendar

An information meeting for analysts and investors will be held at 8:30am (GMT +1) on August 1,

2025 and will be streamed live on Saint-Gobain’s website: www.saint-gobain.com

•       Capital Markets Day: Monday October 6, 2025. 

To sign up, please click on the following link: https://digitalevent.saint-gobain.com/cmd2025

•       Sales for the third quarter of 2025: Thursday October 30, 2025, after close of trading on the Paris stock exchange.

              ANALYST/INVESTOR RELATIONS                                           PRESS RELATIONS

        Vivien Dardel                 (+33) 1 88 54 29 77           Patricia Marie           (+33) 1 88 54 26 83

        Floriana Michalowska (+33) 1 88 54 19 09           Laure Bencheikh     (+33) 1 88 54 26 38

Alix Sicaud           (+33) 1 88 54 38 70    Yanice Biyogo           (+33) 1 88 54 27 96 James Weston       (+33) 1 88 54 01 24

Glossary: 

- Changes on an actual structure basis reflect changes in published indicators between two periods.

- Changes in local currencies reflect actual performance, applying exchange rates for the previous period to indicators for the period under review.

- Like-for-like changes (constant Group structure and exchange rates) reflect underlying performance excluding the impacts of:

•      changes in scope, by calculating indicators for the period under review based on the scope of consolidation of the previous period (structure impact);

•      changes in foreign exchange rates, by calculating indicators for the period under review and those for the previous period based on exchange rates for the previous period (exchange rate impact).

- EBITDA: operating income plus operating depreciation and amortization, less non-operating costs.

- Operating margin: operating income divided by sales.

- ROCE (Return on Capital Employed): operating income for the period under review, adjusted for changes in Group structure, divided by segment assets and liabilities at period-end.

- ESG: Environment, Social, Governance.

- Purchase Price Allocation (PPA): the process of assigning a fair value to all assets and liabilities acquired and of allocating the residual goodwill as required by IFRS 3 and IAS 38 for business combinations. PPA intangible amortization relates to amortization charged against brands, customer lists, and intellectual property, and is recognized in “Other business income and expenses”.

- Pro forma: data including the impact of changes in Group structure (signed or closed) over the period.

All indicators contained in this press release (not defined above or in the footnotes) are explained in the notes to the interim financial statements available by clicking here: https://www.saint-gobain.com/en/finance/regulated-information/half-yearly-financial-report

Net debt                                                   Note 10 

Non-operating costs                                   Note 5   

Operating income                                      Note 5   

Net financial expense                                 Note 10  

Recurring net income                                 Note 5  

Business income                                       Note 5

Working capital requirements                      Note 5  

Important disclaimer – forward-looking statements:

This press release contains forward-looking statements with respect to Saint-Gobain’s financial condition, results, business, strategy, plans and outlook. Forward-looking statements are generally identified by the use of the words “expect”, “anticipate”, “believe", "intend", "estimate", "plan" and similar expressions. Although Saint-Gobain believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are not guarantees of its future performance. Actual results may differ materially from the forward-looking statements as a result of a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond Saint-Gobain’s control, including but not limited to the risks described in the “Risk Factors” section of SaintGobain’s 2024 Universal Registration Document and the main risks and uncertainties presented in the half-year 2025 financial report, both documents being available on Saint-Gobain’s website (www.saint-gobain.com). Accordingly, readers of this document are cautioned against relying on these forwardlooking statements. These forward-looking statements are made as of the date of this document. Saint-Gobain disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. 

This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of SaintGobain.

For further information, please visit www.saint-gobain.com

2025 CONDENSED HALF-YEAR CONSOLIDATED

FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

Assets

Equity and liabilities

The accompanying notes are an integral part of the consolidated financial statements.

CONSOLIDATED INCOME STATEMENT

The accompanying notes are an integral part of the consolidated financial statements. 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENSE

The accompanying notes are an integral part of the consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

^(a)             Please see the consolidated statement of changes in equity.

^(b)             Including bond premiums, prepaid interest and issue costs.

In first-half 2025, income tax paid represented €567 million (€613 million in first-half 2024), total rental expenses paid €387 million (€389 million in first-half 2024), including €51 million in interest paid on lease liabilities (€46 million in firsthalf 2024), and interest paid net of interest received €126 million (€27 million in first-half 2024).

The accompanying notes are an integral part of the consolidated financial statements.

AT DECEMBER 31, 2024                                             1,996                       3,039                     21,632                   (1,292)                  176               (416)             25,135                       513              25,648

The accompanying notes are an integral part of the consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated financial statements reflect the accounting position of Compagnie de Saint-Gobain (the Company) and its subsidiaries ("the Group"), as well as the Group's interests in associate companies and joint ventures. They are expressed in euros rounded to the nearest million.

These consolidated financial statements were adopted on July 31, 2025 by the Board of Directors.

NOTE 1                   ACCOUNTING PRINCIPLES AND POLICIES

The condensed consolidated financial statements of the Saint-Gobain Group have been prepared in accordance with IAS 34, “Interim Financial Reporting”. These condensed financial statements do not include all the information required for the annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024. The consolidated financial statements have been prepared using the historical cost convention, except for certain assets and liabilities that have been measured using the fair value model as explained in these notes.

1.1         Standards applied

The condensed consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and interpretations adopted for use in the European Union at June 30, 2025.

The bases for measurement and accounting policies applied are the same as those used by the Group to prepare its consolidated financial statements for the year ended December 31, 2024, with the exception of the standards, interpretations and amendments adopted by the European Union and effective as of January 1, 2025 (see note 1.1.1) and the bases of measurement specific to interim financial reporting (see note 1.2).

 1.1.1      Standards, interpretations and amendments to existing standards applicable for reporting periods beginning on or after January 1, 2025

The following standards and amendments, effective since January 1, 2025, were applied where necessary to the condensed consolidated financial statements for the six months ended June 30, 2025. Only one amendment was concerned:

•     Amendment to IAS 21, “The Effects of Changes in Foreign Exchange Rates” – Lack of Exchangeability.

The main IFRIC decisions published in first-half 2025 concern:

•     IAS 7, “Classification of Cash Flows related to Variation Margin Calls on ‘Collateralised-to-Market’ Contracts”;

•     IFRS 15, “Recognition of Revenue from Tuition Fees”;

•     Potentially IFRS 9, 15 and 17, and IAS 37 “Guarantees Issued on Obligations of Other Entities”;

•     IAS 38, “Recognition of Intangible Assets from Climate-related Expenditure”.

These decisions do not have a material impact on the Group's consolidated financial statements.

1.1.2    Standards, interpretations and amendments to existing standards available for early adoption in reporting periods beginning on or after January 1, 2025

The new standards, interpretations and amendments to existing standards available for early adoption in reporting periods beginning on or after January 1, 2025 were not adopted by the Group at June 30, 2025:

•     Amendments to IFRS 9 and IFRS 7 concerning the classification and measurement of financial instruments; • Amendments to IFRS 9 and IFRS 7, “Contracts Referencing Nature-dependent Electricity”;

•     Annual improvements to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7.

1.1.3    Standards, interpretations and amendments to existing standards published but not yet applicable

The new standards, interpretations and amendments to existing standards that have been published but are not yet applicable concern:

•     IAS 29, “Assessing Indicators of Hyperinflationary Economies”;

•     IFRS 18, “Presentation and Disclosure in Financial Statements”;

•     IFRS 19, “Subsidiaries without Public Accountability: Disclosures”.

These new standards are currently being analyzed by the Group.

1.2 Estimates and assumptions

The preparation of consolidated financial statements in compliance with IFRS requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported in the balance sheet and the disclosure of contingent assets and liabilities in the notes to the financial statements, as well as the reported amounts of income and expenses during the period. These estimates and assumptions are based on past experience and on various other factors in the prevailing economic and financial environment which makes it difficult to predict future business performance. Actual amounts may differ from those obtained through the use of these estimates and assumptions.

The main estimates and assumptions described in these notes concern the measurement of employee benefit obligations and share-based payments (see note 6, p. 24), asset impairment tests and the determination of lease terms (see note 7, p. 27), other current and non-current liabilities and provisions (see note 9, p. 30), the measurement of financial instruments (see note 10, p. 35), and taxes (see note 12, p. 43).

The accounting valuation methods applied by the Group in the interim condensed consolidated financial statements are identical to those used to prepare the consolidated financial statements for the year ended December 31, 2024. The specific accounting valuation methods applied relate to income tax (see note 12, p. 43) and employee benefits (see note 6, p. 24).

NOTE 2          SIGNIFICANT EVENTS OF THE PERIOD AND MACROECONOMIC CONDITIONS

2.1  Significant events of the period

2.1.1               Acquisition of OVNIVER group

On January 15, 2025, Saint-Gobain completed the acquisition of Ovniver group, a leading construction chemicals player in Mexico and Central America. Ovniver Group generated revenue of $285 million in 2024, with a growth rate of around 20% per year on average over the last five years, operates 16 manufacturing plants and has around 1,000 employees.

In accordance with IFRS 3, a preliminary allocation of the €0.7 billion purchase price was carried out at June 30, 2025. The provisional goodwill resulting from this process amounted to €418 million. The Group has 12 months as from the acquisition date to finalize the purchase price allocation.

This acquisition was fully financed in cash.

2.1.2             Acquisition of FOSROC

On February 7, 2025, Saint-Gobain completed the acquisition of Fosroc, a leading global player in construction chemicals with 2024 revenue of around $490 million, 20 manufacturing plants and around 3,000 employees.

In accordance with IFRS 3, a preliminary allocation of the €0.9 billion purchase price was carried out at June 30, 2025. The provisional goodwill resulting from this process amounted to €420 million. The Group has 12 months as from the acquisition date to finalize the purchase price allocation.

This acquisition was fully financed in cash.

2.1.3          Bond issue

On April 4, 2025, Saint-Gobain carried out a €1.2 billion bond issue comprising two tranches: €0.7 billion with a 3-year maturity and a 2.75% coupon, and €0.5 billion with an 8-year maturity and a 3.50% coupon. With this transaction SaintGobain has taken advantage of favorable market conditions to anticipate its future refinancing needs.

2.1.4                  New Group organization and governance structure

On June 5, 2025, Saint-Gobain announced a new operational organization designed to deepen its proximity to local markets and accelerate its profitable growth. As a result, as of July 1, 2025, Country CEOs are responsible for the full range of the Group's solutions, including those previously managed within High Performance Solutions. Alongside this new organization, a new Executive Committee has been put in place and a Group Operational Performance department has been set up.

Consequently, as of July 1, 2025, the Group's external reporting is based on four major Regions: Northern Europe, Southern Europe – Middle East & Africa, Americas and Asia-Pacific. Since the Group's new organization was not yet effective as of June 30, 2025, it had no impact on the consolidated financial statements for the six months ended June 30, 2025, or their presentation. However, the impacts will be reflected in the 2025 full-year financial statements.

2.2   Macroeconomic conditions

Saint-Gobain has been facing a volatile economic environment in its main operating countries for several years. The wave of inflation observed post-pandemic and as a result of the energy crisis triggered by the war in Ukraine led the world's main central banks to introduce aggressive interest rate rises, impacting the construction sector, which is traditionally highly dependent on interest rate cycles. Since the beginning of 2025, the US government's trade policy has sparked uncertainty and economic volatility (see note 2.2.4, p.13).

Amidst higher interest rates and a slowing economy, the Group continued its rigorous management of liquidity, interest rate and foreign exchange risks (see note 10.1, p. 422 in chapter 8 of the 2024 Universal Registration Document), while increasing its oversight and tracking of credit risk and continuing to apply its strict gas and electricity price hedging policy.

Interest rates have nevertheless fallen since 2024 in most of the Group’s main countries, and the Group is well positioned to take advantage of medium-term opportunities, with housing shortages in the Group’s major countries (especially the US, Canada and Germany) and the major energy retrofits needed to meet climate objectives representing sources of sustainable growth for Saint-Gobain. The need to adapt buildings to increasing climate hazards has also generated opportunities for the Group.

2.2.1                Hyperinflation in Argentina  and Turkey

The Argentine economy, which has been experiencing a brutal adjustment since fall 2023 after the new government implemented severe fiscal and currency devaluation measures, is now starting to make significant economic progress. Inflation has eased sharply, reaching 39% year-on-year in June 2025, after peaking at 289% in April 2024. Little by little, the country's monetary and exchange rate policies are gaining credibility, and economic activity is gradually recovering.

As for the Turkish economy, it continues to grow, but has recently slowed down as a result of its exposure to geopolitical and trade uncertainty. The government is maintaining a tight monetary policy stance, allowing inflation to ease slowly, coming out at 35% in June 2025 (versus 72% in June 2024).

In accordance with IAS 29, hyperinflation in these two countries, and in particular its consequences in terms of the impairment in value of monetary items, are reflected in the Group’s net financial expense for the six months ended June 30, 2025.

2.2.2                          Impact of the Russia-Ukraine conflict on the Group's strategy and financial performance

Information concerning the Group’s operating activities

Since the outbreak of the conflict between Russia and Ukraine, in addition to the Group's application of the sanctions imposed against Russia, Saint-Gobain has decided to halt all its exports to customers in Russia and Belarus, and all its imports from these two countries.

Nevertheless, its local Russian operations, which represent around 0.7% of the Group’s worldwide sales and do not involve any local partnerships, continue to operate autonomously, with locally produced solutions sold exclusively on local construction markets.

In Ukraine, Saint-Gobain finalized the construction of a plaster production plant in the west of the country, which came on stream in November 2024.

In organizational terms, Ukraine is included in a Poland-Ukraine cluster falling under the direct responsibility of the management team in Poland.

Scope of consolidation

Insofar as the Group continues to produce and sell in Russia for the local market, and to ensure its local business can continue to operate with complete autonomy of management and control of returns, Saint-Gobain still controls its Russian subsidiaries.

In accordance with IFRS 10, its Russian and Ukrainian companies have not therefore been deconsolidated and were still included in the Group’s scope of consolidation for the preparation of the consolidated financial statements for the six months ended June 30, 2025.

Asset impairment review

Total non-current assets in Russia represent €206 million, or 0.5% of the Group's total non-current assets.

No indication of impairment was identified for these companies. Consequently, no impairment losses related to the Russia-Ukraine conflict were recognized in end-June 2025.

Financial risks

Given the Group's limited presence in Russia and Ukraine, the conflict has not generated any credit or liquidity risks, and forex exposure is also being managed effectively.

Group cash and cash equivalents held in Russia represented €199 million, i.e., 3.3%, of the Group’s total cash and cash equivalents at June 30, 2025. The Group does not consider these cash and cash equivalents to be restricted within the meaning of IAS 7, insofar as it is available for use in local operations, including for the purposes of international trade. However, cash repatriation is constrained by international sanctions and local capital control measures.

Since March 2, 2022, the Group has been using the Russian ruble exchange rate published by Reuters for the translation of its consolidated financial statements.

While the Russia-Ukraine conflict has not had a direct material impact on the financial statements for the six months ended June 30, 2025, the situation remains unstable and complex. The Group therefore remains vigilant in analyzing the potential future impacts of the conflict.

2.2.3                         Impact of the Middle East conflicts on the Group's strategy and financial performance

The Group does not have any operations in the countries directly involved in the main conflicts in the Middle East (Iran and Israel). The only exception is Lebanon, where the Group's operations remain nevertheless very limited, with sales and total non-current assets representing less than 1% of the Group's consolidated data.

Nevertheless, the Group is keeping a close watch on its operations, particularly on account of the risk that the conflict extends across the rest of the region.

2.2.4                       Impact of US tariffs on the Group’s strategy and financial performance

In early 2025, the United States introduced significantly higher tariffs on several categories of imported goods, notably steel and aluminum. The move prompted similar measures from several of their trading partners, heightening geopolitical tensions and disrupting global supply chains.

In this context, Saint-Gobain's multi-local approach, based on market proximity and geographic diversification, has strengthened the Group's resilience to disruptions in international trade. Thanks to its local value chains – industrial facilities, logistics, purchasing, brands, sales and customers – the Group is perfectly positioned in local construction markets, with no direct exposure to customs barriers.

As a result, changes in tariffs did not have a material impact on the Group's consolidated financial statements for the first half of 2025. Accordingly, no indications of impairment were identified in the Group's activities, and no impairment losses were recognized in respect of the impact of tariffs at the end of the first-half 2025 reporting period.

However, such developments introduce an element of uncertainty into the global macroeconomic environment, which the Group continues to monitor with vigilance.

NOTE 3               CLIMATE ISSUES

3.1 The "net-zero-emissions" commitment at the heart of the Group's strategy

Sustainability concerns are at the heart of the Group’s strategy and are an essential element in supporting its growth. In 2019, the Group committed to being net-zero-emissions by 2050. This commitment was approved by the Science-Based Targets initiative (SBTi) in September 2022, considering the Group’s roadmap to be consistent with the new net-zero standard and the Paris climate agreement.

In order to meet this net-zero emissions target by 2050, in November 2020 Saint-Gobain defined an initial roadmap for the period to 2030. The roadmap identifies the levers and action plans that will enable the Group to meet its goal of a 33% absolute reduction in scope 1 and 2 carbon emissions compared to a 2017 baseline, and a 16% reduction in scope 3 emissions.

As well as its commitments to reduce its emissions through to 2030, the Group seeks to develop and propose solutions to help decarbonize the construction sector and its customers' markets.

The innovative solutions developed by Saint-Gobain help to:

•     improve the energy performance of buildings so as to reduce both the negative impact of construction on the environment and their occupants’ energy bills, while also enhancing occupant well-being. Saint-Gobain’s solutions play an important role in the fight against climate change, since they reduce the amount of greenhouse gas emissions by reducing energy use;

•     encourage the replacement of heavy materials (cement, concrete, brick) by light materials (plasterboard structures when feasible, etc.);

•     accelerate the decarbonization of heavy materials;

•     make buildings more resilient to climate change.

The Group’s High Performance Solutions enable it to meet growing market needs linked to the decarbonization of manufacturing processes, as well as those of the mobility market. Following the acquisition of Chryso and GCP Applied Technologies Inc. (GCP), the Group further strengthened, in 2025, its position in Construction Chemicals with the acquisition of Fosroc (India/Middle East/Asia Pacific), whose products play a significant role in helping to decarbonize construction through the design of innovative admixtures that reduce the carbon footprint of cement and concrete.

3.2 Taking into account the "net-zero-emissions" commitment when preparing the Group's financial statements

In line with these commitments and targets, the Group has taken into account climate change and sustainable development issues in its financial statements, mainly in the areas cited below:

A Group-wide commitment

All Regions and the High Performance Solutions business have drawn up structured roadmaps for reducing CO₂ emissions. These roadmaps are broken down by country and entity, plant, project, and together, will be used to justify the Group’s 2030 scope 1 and scope 2 emissions reduction targets and to set objectives for 2030-2050.

The roadmaps are reviewed each year in line with the Group’s main financial deadlines (strategic plan, budget) and combine a large number of potential improvements, action plans and industrial projects (energy efficiency and energy mix; application of new technologies; growth in the circular economy; product reformulations, streamlining and design, etc.). The roadmaps contain measures for each site designed to reduce scope 1 direct emissions, and take into account the growing number of new Purchase Power Agreements (PPA) and Virtual Purchase Power Agreements (VPPA) on a country-by-country basis aimed at reducing scope 2 indirect emissions.

After the world firsts achieved by the Group in recent years, notably net zero-carbon production (scopes 1 and 2) of flat glass in France and plasterboard in Norway, and very low-carbon production (scopes 1 and 2) of glass wool insulation in Finland, it pursued its carbon-reduction measures during the first half of 2025, including:

•     Decarbonization of production processes:

–     Installation of a state-of-the-art electric furnace to power the stone wool production line in Spain and reduce CO₂ emissions by 70% (scope 1 and 2) compared with 2017. The Azuqueca plant is supplied with zero-carbon electricity thanks to a PPA signed in 2022, which guarantees the supply of green electricity until 2034;

–     Launch of a project to build a new low-carbon stone wool insulation plant in the United Kingdom. The new plant will feature a fully electric furnace powered by renewable electricity.

•     Development of sustainable solutions: – UK launch of plasterboard made from 100% recycled plaster. The "Gyproc SoundBloc Infinaé 100" marks a major milestone for the whole industry toward greater circularity, as it is among the world’s first plasterboards manufactured entirely from gypsum recycled materials. It uses plaster waste from construction sites.

Renewable Power Purchase Agreements

The Group is continuing to negotiate and sign renewable electricity supply (scope 2) contracts either with physical electricity delivery (Power Purchase Agreement – PPA), or financial contracts without physical delivery, including a cash settlement based on the difference between the contract price and the market price (Virtual Power Purchase Agreement – VPPA). Saint-Gobain analyzes the accounting treatment for such agreements before they are set up. They are accounted for in accordance with either IFRS 16 for leases, IFRS 9 for financial instruments, or IAS 37 for regular purchase agreements qualifying for the own-use exemption provided for in IFRS 9.2.4 .

The majority of the agreements entered into by the Group are PPAs that are considered to be purchase agreements qualifying for the IFRS 9.2.4 own-use exemption. The Group is also party to four VPPAs, which are financial instruments accounted for under IFRS 9.

The most material agreements (>200 GWh over the term of the contract) at June 30, 2025 are presented in the table below along with their main characteristics:

% of the country's

electricity  consumpti

In accordance with IFRS 9, VPPAs are measured at fair value through profit or loss, with the exception of one VPPA qualified as a hedge (Poland VPPA), for which changes in fair value are recognized in other comprehensive income. The impact of changes in fair value of VPPAs on the Group's financial statements for the six months ended June 30, 2025 is not material.

As a reminder, 67% of the electricity consumed by the Group in 2024 was decarbonized.

Measurement and tracking of value chain emissions (scope 3)

The scope 3 categories on which the Group has real leverage and which are subject to SBTi validation are mainly upstream categories (purchases of raw materials and trading products, energy purchases and transport). The Group is continuing its efforts to improve the quality and quantity of available data using a fine-tuned tool that regularly tracks emissions in the main scope 3 categories. The aim is to build an efficient and automated data model in this area.

In the raw materials and trading products, the Group's main suppliers (the biggest contributors to CO₂ emissions) are now asked to disclose, via a dedicated portal, their carbon footprints and goals.

Management of CO₂ emissions allowances

At the end of 2024, the Saint-Gobain Group had 3.8 million tonnes of greenhouse gas emissions allowances from the European Commission. In addition, in 2024 the Group made forward purchases of 0.5 million tonnes of CO₂ emissions allowances at an average price of €67 per tonne, maturing in July 2025. In the first half of 2025, the Group made forward purchases of 0.2 million tonnes of CO₂ emissions allowances on the open market at an average price of €66 per tonne, maturing in 2026. Consequently, as of end-June 2025, the Group expects to be self-sufficient in terms of CO₂ emissions allowances for more than three years.

Sustainable investments, research and development expenditure, and other expenditure aimed at combating climate change and protecting the environment

Investments to reduce CO₂ emissions are tracked monthly in the Group's financial reporting. To help accelerate progress towards carbon-neutral production, €1 billion has been set aside over the ten years from 2021 to 2030 for capital expenditure and research and development. Of this total, €764 million had already been allocated at end-2024 since the roadmap was first implemented in 2020.

Financing activities

In 2022, Saint-Gobain successfully priced a Sustainability-Linked Bond, of which a 10-year tranche of €500 million is indexed to two sustainable performance targets calculated through to 2030 compared to the 2017  baseline (reduce scope 1 and 2 CO₂ emissions by 33%, and reduce non-recovered production waste by 80%). In December 2023, SaintGobain also signed a €4 billion Sustainability-Linked Loan initially maturing in December 2028, with two options for an additional one-year extension each. The first, exercised at the end of 2024, brought the current maturity to December 2029; its margin is indexed to three performance indicators relating to Saint-Gobain's sustainability roadmap to 2030, compared with the 2017 baseline year (reduce by 33% absolute scope 1 and 2 CO₂ emissions achieve, an 80% reduction in non-recovered production waste, and maintain a frequency rate for workplace accidents at or below 1.5 per 1 million hours worked). Lastly, in March 2024, Saint-Gobain successfully priced its first green bond with a double tranche issue (€1 billion with a 6-year maturity and a 3.375% coupon, and €1 billion with a 10-year maturity and a 3.625% coupon). The proceeds were used to finance projects aligned with the European taxonomy and a report on the allocation and impact of this issue is available on the Group's website.

3.3  Corporate governance

CSR committees

Both the Board of Directors and the Group Executive Committee have set up a CSR Committee.

Internal carbon price

The Group set its internal carbon prices at €100 per tonne of CO₂ for evaluating capital expenditure decisions, and €200 per tonne for evaluating R&D projects. A similar approach has been adopted for major acquisitions, and includes the work that may be required to ensure that the carbon impact of these acquisitions is compatible with Saint-Gobain's roadmap.

Executive compensation policy

Recognizing that climate change is a strategic matter for the Group, Saint-Gobain has included CO₂ emissions reduction in the key performance indicators used to determine the short- and long-term compensation plans of Group executives. CSR objectives determine 20% of amounts paid out under long-term plans, and 15% of annual variable compensation, while CO₂ objectives now account for 10% of long-term plans and 5% of annual variable compensation.

3.4  Asset impairment tests and net CO₂ emissions

As stated in the section on asset impairment reviews (see note 7.5.4, p. 415 in chapter 8 of the 2024 Universal Registration Document), the Group includes sensitivity to changes in the price of CO₂ emissions allowances in its annual impairment tests.

As a reminder, no indications of impairment were identified for any of the net assets in the groups of CGUs, given the headroom observed for all groups of CGUs.

3.5  Climate impact assessment on Group assets

In 2023, with the help of an external firm, Saint-Gobain began an assessment of assets at nearly 500 of its biggest industrial and logistics sites to identify its exposure to physical risks related to the impact of climate change (floods, forest fires, cyclones, storms, droughts and heat stress), as well as earthquakes, on its activities. The study showed that the identified risks do not represent a material financial impact for the Group. The 2024 edition of the study, which was expanded to include 51 Australian CSR sites, confirmed the findings of the initial 2023 study.

3.6  Regulatory developments

The Group is continuing its impact assessments and its work on applying new regulations related to climate change and the energy transition.

NOTE 4                   SCOPE OF CONSOLIDATION

4.1 Accounting principles related to consolidation

The Group's condensed consolidated financial statements include the accounts of Compagnie de Saint-Gobain and of all companies controlled by the Group, as well as those of jointly controlled companies and companies over which the Group exercises significant influence.

In the first half of 2025, IAS 29, “Financial Reporting in Hyperinflationary Economies”, was applied in respect of the following countries: Argentina

Argentina has been classified as a hyperinflationary economy since July 1, 2018. IAS 29 therefore applies to entities using the Argentine peso as their functional currency (based on the table of indices issued by FACPCE).

Lebanon

Lebanon has been classified as a hyperinflationary economy since October 2020. As from December 31, 2020, IAS 29 is therefore applicable to entities using the Lebanese pound as their functional currency.

The Group's exposure to Lebanon is not material, as sales and total non-current assets in the country represent less than 1% of the Group's consolidated data.

Turkey

Since February 2022, Turkey has had a three-year cumulative inflation rate above 100% and was therefore included in the list of hyperinflationary economies in March 2022. IAS 29 therefore applies to entities using the Turkish lira as their functional currency.

4.2 Changes in Group structure

Significant changes in the Group’s structure during first-half 2025 are presented below:

The Group acquired eight fully consolidated companies for a total purchase price of €1.7 billion.

The Group also partially sold one consolidated company during the period.

4.2.1 Acquisitions in first-half 2025

Acquisitions of consolidated companies amounted to full-year sales and EBITDA of around €750 million and €145 million, respectively.

The main acquisitions in first-half 2025 are summarized below:

•     On January 15, 2025, Saint-Gobain completed the acquisition announced on August 15, 2024 of Ovniver group, a leading, unlisted construction chemicals player in Mexico and Central America (see note 2.1.1 p.11 );

•     On February 7, 2025, Saint-Gobain completed the acquisition of Fosroc, a leading, unlisted global construction chemicals player (see note 2.1.2 p.11);

•     On June 18, 2025, Saint-Gobain announced the acquisition of Maturix, based in Denmark, a leading construction chemicals provider.

The process of identifying and measuring at fair value the assets acquired and liabilities and debt assumed within the scope of the acquisitions carried out in first-half 2025 will be finalized within 12 months of each acquisition date.

During first-half 2025, the Group continued to measure the fair value of each major category of assets acquired and liabilities and debt assumed of its two main acquisitions in 2024, namely the Bailey Group in Canada and CSR Ltd in Australia. Regarding the Bailey Group, final goodwill amounted to €262 million (based on acquisition-date value), based on the amounts allocated to customer relationships (€156 million), intellectual property (€28 million), and brands (€24 million). Regarding CSR Ltd, goodwill amounted to €610 million (based on acquisition-date value), based on the amounts allocated to customer relationships (€159 million), brands (€130 million) and provisions for asbestos-related litigation (€187 million).

4.2.2 Main disposals in first-half 2025

The Group did not carry out any significant disposals in first-half 2025.

4.3 Assets and liabilities held for sale

Assets and liabilities held for sale at June 30, 2025 include:

•     Calders & Grandidge in the United Kingdom;

•     Distribution companies in Brazil, following the Group's decision to put its building materials distribution activities in the country up for sale.

These planned disposals are part of Saint-Gobain's portfolio optimization strategy, which is designed to improve the Group's growth and profitability profile.

Since the assets and liabilities held for sale meet the qualifying criteria, the balance sheet items of these entities were combined and measured within assets and liabilities held for sale in the consolidated balance sheet at June 30, 2025, in accordance with IFRS 5.

For confidentiality reasons, the position of each individual company at June 30, 2025 is not disclosed.

In addition, these entities in the process of being sold were not considered as discontinued operations within the meaning of IFRS 5 as they do not represent a major line of business for the Group.

At June 30, 2025, assets and liabilities held for sale also include certain real estate assets resulting from the acquisition of the CSR Ltd group and qualifying as being convertible into cash in the short or medium term. The Group considers that the criteria set out in IFRS 5 have been met insofar as development of the real estate assets is complete and the marketing phase has begun. Assets meeting these criteria amounted to €270 million at June 30, 2025.

Assets and liabilities held for sale break down as follows:

4.4 Changes in the number of consolidated companies

At June 30, 2025, there were 1,003 companies in the scope of consolidation (975 at December 31, 2024), including 98 equity-accounted companies and joint arrangements (102 at December 31, 2024).

4.5 Off-balance sheet commitments related to companies within the scope of consolidation

Non-cancelable purchase commitments represented approximately €90 million at June 30, 2025.

NOTE 5          INFORMATION CONCERNING THE GROUP’S OPERATING ACTIVITIES

5.1 Income statement items

5.1.1        Business income

Business income is detailed by type below:

(1)     Share-based payments (IFRS 2 expense) are detailed in note 6, p. 24;

(2)     Total depreciation and amortization of property, plant and equipment, intangible assets and right-of-use assets, along with amortization charged against intangible assets as part of the purchase price allocation, represented €1,211 million in first-half 2025 versus €1,129 million in first-half 2024;

(3)     The "Other" operating income line relates to cost of sales, supplier discounts and selling expenses for Distribution entities, and to transport costs, raw materials costs, and other production costs for the other entities. This item also includes research and development costs recorded under operating expenses, amounting to €301 million in first-half 2025 (€285 million in first-half 2024).

5.1.2 Other business income and expense

Other business income and expense can be analyzed as follows:

(1)     The "Impairment of assets" line includes the impairment of goodwill, other intangible assets, property, plant and equipment, right-of-use assets, assets held for sale and other assets.

(2)     Amortization charged against brands and customer lists is included on a separate line within "Other business income and expense" together with other gains and losses arising on business combinations which are not taken into account when determining the performance of the Group's operating segments.

(3)     In 2025, as in 2024, other business items mainly includes capital losses on assets divested or scrapped, acquisition costs, contingent consideration incurred in connection with business combinations, and the impact of changes in fair value of VPPAs.

(4)     Non-operating income and expense mainly include claims-related impacts and restructuring costs.

5.2 Segment information

In accordance with IFRS 8, segment information reflects the Group's internal organization as presented to management. The Group has chosen to present segment information in line with its existing internal reporting at June 30, 2025.

The Group is organized into five reporting units: four regional businesses and a global High Performance Solutions unit. Segment information is presented for:

•   High Performance Solutions (HPS), which is organized by market for global customers, i.e., Mobility, Life Sciences, Construction Industry and Industry.

And for four regions:

•   Northern Europe, comprising the Nordic countries, United Kingdom, Ireland, Switzerland, Germany, Austria, Eastern Europe and Russia;

•   Southern Europe – Middle East (ME) & Africa, comprising France, Benelux, Mediterranean, Middle East and Africa;

•   Americas, comprising North America and Latin America;

•   Asia-Pacific, comprising the Asia region as well as Australia and India;

•   Other, comprising the Group's various holding companies.

Segment information for first-half 2025 and first-half 2024 is as follows:

First-half 2025

(1)     “Other” corresponds to the elimination of intragroup transactions for internal sales, and holding company transactions for the other captions.

(2)     France and United States sales represent €5,512 million and €4,286 million, respectively.

(3)     This item does not include right-of-use assets. First-half 2024

(1)     “Other” corresponds to the elimination of intragroup transactions for internal sales, and holding company transactions for the other captions.

(2)     France and United States sales represent €5,848 million and €4,385 million, respectively.

(3)     This item does not include right-of-use assets.

No single external customer accounts for 10% or more of the Group's consolidated sales.

5.3 Performance indicators

5.3.1 EBITDA

EBITDA represents operating income plus depreciation and amortization of property, plant and equipment, intangible assets and right-of-use assets, as well as non-operating income and expense.

It amounted to €3,818 million in the first half of 2025 (€3,652 million in first-half 2024), calculated as follows:

5.3.2 Recurring net income

Recurring net income corresponds to income after tax and non-controlling interests, less capital gains or losses on disposals, impairment of assets, amortization of intangible assets recognized as part of the purchase price allocation, acquisition costs on business combinations accounted for in accordance with IFRS 3, other non-recurring items (notably material non-recurring provisions and the impact of hyperinflation) and related tax and non-controlling interests.

Recurring net income totaled €1,797 million in first-half 2025 (€1,820 million in first-half 2024 after restatements). Based on the weighted average number of shares outstanding at June 30 (495,096,191 shares in 2025 and 501,808,814 shares in 2024), recurring earnings per share amounted to €3.63 in first-half 2025 and €3.63 in first-half 2024 (after restatements).

The difference between net income and recurring net income corresponds to the following items:

(1)     As at December 31, 2024, recurring net income is restated for two non-recurring items: the impact of hyperinflation (IAS 29) and the amortization of intangible assets recognized as part of the purchase price allocation.

(2)     “Other non-recurring items” notably includes the negative impact of hyperinflation for an amount of €23 million in first-half 2025 (negative impact of €37 million in first-half 2024).

5.4 Working capital

Working capital can be analyzed as follows:

* Other non-operating payables include payables to suppliers of non-current assets, grants received and miscellaneous other non-operating payables (see note 5.4.2, p.22 ).

5.4.1 Inventories

At June 30, 2025 and December 31, 2024, inventories were as follows:

The net value of inventories was €7,189 million at June 30, 2025 compared with €7,031 million at December 31, 2024.

Impairment losses on inventories recorded in the first half of 2025 totaled €131 million (€120 million in the first half of

2024). Reversals of impairment losses on inventories amounted to €130 million in first-half 2025 (€118 million in first-half 2024).

5.4.2 Operating and non-operating receivables and payables Trade and other accounts receivable

Trade and other accounts receivable can be analyzed as follows:

The impact of movements in provisions and bad debt write-offs represented an expense of €24 million in first-half 2025, versus an expense of €28 million in first-half 2024.

Bad debt write-offs totaled €22 million, compared with €24 million in first-half 2024.

Trade accounts receivable at June 30, 2025 and December 31, 2024 are analyzed below by maturity:

Trade and other accounts payable

Trade and other accounts payable and accrued expenses can be analyzed as follows:

5.5 Off-balance sheet commitments related to operating activities

Non-cancelable purchase commitments represented €2,973 million at June 30, 2025 (€3,120 million at December 31, 2024).

In some cases, the Group grants seller's warranties to the buyers of divested businesses. A provision is recognized whenever a risk is identified and the related cost can be estimated reliably.

There were no material changes in the Group’s other commitments.

NOTE 6                            PERSONNEL EXPENSES AND EMPLOYEE BENEFIT OBLIGATIONS

6.1 Provisions for pensions and other employee benefits

6.1.1            Description of defined benefit plans

The Group’s main defined benefit plans are identical to those set out in the consolidated financial statements at December 31, 2024.

6.1.2 Rate assumptions

The assumptions related to mortality, employee turnover and future salary increases used to measure defined benefit obligations and plan assets take into account the economic conditions specific to each country and Group company. The discount rates are established by region or country based on observed bond yields at June 30, 2025.

For the Eurozone (including France), two discount rates were calculated for 2025 based on the term of the plans using a yield curve model developed by consulting firm Mercer: one rate for plans with a term of 13 years or less (identical in 2024) and one for plans with a term of over 13 years (identical in 2024).

The rates used in first-half 2025 for the Group's main plans were the following:

                                                                    Eurozone (including France)                                                   United Kingdom                                  United States

(in %)                                                                        Short-term plans                              Long-term plans

The rates used in 2024 for the Group's main plans were the following:

                                                                    Eurozone (including France)                                                   United Kingdom                                  United States

As the above three regions account for substantially all of the Group’s pension obligation, the revised actuarial assumption (in particular discount and inflation rates), contributed to a decrease in the obligation, and therefore in the provision, in an amount of €224 million.

The actual return on plan assets for almost all plans was €46 million less than expected, leading to an increase in the provision of the same amount.

In addition, a €25 million decrease in the asset ceiling, mainly affecting Switzerland, generated an increase in the provision in the same amount.

6.1.3 Breakdown of and changes in pension and other post-employment benefit obligations Carrying amount of provisions

Provisions for pension and other employee benefit obligations consist of the following:

Provisions for all other long-term benefits totaled €145 million at June 30, 2025 (€154 million at December 31, 2024).

The following table shows net obligations under pensions and other post-employment benefit plans, excluding other longterm benefits:

Changes in pension and other post-employment benefit obligations

Changes in pensions and other post-employment benefit obligations are as follows:

Net pension and other post-employment

(in EUR millions)                                                                                                                                                                                                                                                              benefit obligations

6.2 Share-based payments

6.2.1 Group Savings Plan (PEG)

The Group Savings Plan (Plan d'Epargne Groupe – PEG) is an employee stock purchase plan open to all Group employees in France and most other countries where the Group is present. Eligible employees must have completed a minimum of three months' service with the Group. Eligible employees are able to invest in Saint-Gobain shares at a preferential subscription price. These shares are held either directly or through the employee saving plan's mutual funds, depending on local legislation, and are subject to a mandatory five- or ten-year lock-up, except following the occurrence of certain events. The Board of Directors delegates authorization for setting the subscription price to the Chief Executive Officer of Compagnie de Saint-Gobain. The subscription price corresponds to the average of the opening prices for the SaintGobain share on Euronext Paris over the 20 trading days preceding the date of the decision, subject to a 20% discount, in accordance with applicable laws, the Shareholders' Meeting resolutions and the deliberations of the Board of Directors. The Group makes a matching contribution to amounts paid in by employees, which is expensed in the consolidated financial statements.

The Saint-Gobain Group implemented a new PEG in the first half of 2025. As approved by the Chief Executive Officer on March 10, 2025, the reference price is €96.09 (€69.12 in 2024), representing a subscription price of €76.88 (€55.30 in 2024) after a 20% discount.

A total of 3,131,501 new shares with a par value of €4 were issued to employees under the PEG at an average subscription price of €76.88 (4,007,048 shares at an average price of €55.30 in 2024), representing a share capital increase of €240 million (€221 million in 2024), net of transaction fees.

An IFRS 2 expense representing the benefit granted to employees was recognized in an amount of €29.5 million for firsthalf 2025 (€27.4 million for first-half 2024).

6.2.2 Stock option plans

Until 2018, Compagnie de Saint-Gobain operated stock option plans for certain categories of employees.

No stock option plans have been launched since 2019.

As in 2024, no expense was recognized in accordance with IFRS 2 for the amortization of stock options granted under previous plans in first-half 2025.

6.2.3 Performance share and performance unit grants Performance share plans

Since 2009, performance share plans have also been set up for certain categories of employees.

At June 30, 2025, there were four outstanding performance share plans, approved by the Board of Directors in 2021, 2022, 2023 and on November 28, 2024.

No new plan was set up in first-half 2025.

The amount expensed in respect of these plans in first-half 2025 was €24.0 million (€20.0 million in first-half 2024).

Performance unit plans

Performance unit plans subject to service and performance conditions were set up every year between 2012 and 2015 for certain management-grade employees and senior managers of the Group in France. These plans do not give rise to the delivery of shares but entitle grantees to receive cash compensation deferred over the long-term (exercise period between four and ten years after the grant date), the amount of which will be determined by reference to Saint-Gobain's share price.

No long-term compensation plan in the form of performance units has been set up since 2016.

Since the vesting period of the last plan ended in 2019, there are no longer any expenses in respect of such plans.

NOTE 7          INTANGIBLE ASSETS, PROPERTY, PLANT AND EQUIPMENT, AND RIGHT-OF-USE ASSETS

Changes in goodwill, other intangible assets, property, plant and equipment and right-of-use assets at June 30, 2025 and December 31, 2024 break down as follows:

Other                      Property, intangible         plant and     Right-of-use

NET VALUE                                                                                                                       14,236                             4,849                           14,880                             3,008                               36,973

*        The "Depreciation and amortization” line relating to "Other intangible assets" includes amortization charged against intangible assets as part of the purchase price allocation, representing €146 million in first-half 2025 versus €103 million in first-half 2024.

7.1 Goodwill

In first-half 2025, changes in Group structure corresponded mainly to additions to the scope of consolidation for a total amount of €932 million, including the acquisition of Fosroc for €420 million and Ovniver for €418 million.

Goodwill impairment losses were recognized for a total of €17 million against individual assets during the period. The translation adjustments and restatements for hyperinflation primarily reflect the impacts of fluctuations in the US dollar, Canadian dollar, Australian dollar, pound sterling, Indian rupee, Mexican peso, Argentine peso and Turkish lira.

In 2024, changes in Group structure corresponded mainly to additions to the scope of consolidation for a total amount of €916 million, including the acquisition of CSR for €569 million and Bailey for €262 million.

Impairment losses were recognized for a total of €82 million, mainly against individual assets in the period. The translation adjustments and restatements for hyperinflation primarily reflect the impacts of fluctuations in the US dollar, pound sterling, Argentine peso, Turkish lira, Brazilian real, Norwegian krone and Australian dollar.

7.2 Other intangible assets

In the first half of 2025, changes in Group structure correspond mainly to adjustments to the purchase price allocation for customer relationships, brands and intellectual property related to the Fosroc acquisition, representing €502 million, €110 million and €39 million, respectively. They also include adjustments to the purchase price allocation for customer relationships and brands related to the Ovniver acquisition for €258 million and €54 million respectively. Translation adjustments and restatements for hyperinflation primarily reflect the impacts of fluctuations in the US dollar, Canadian dollar, Indian rupee, pound sterling, and Australian dollar.

In 2024, changes in Group structure mainly concerned the first-time consolidation of companies following the acquisition of Bailey on customer relationships intellectual property and brands for €156 million, €28 million and €24 million, respectively, and the acquisition of CSR on customer relationships and brands for €159 million and €130 million, respectively.

The translation adjustments and restatements for hyperinflation primarily reflected the impacts of fluctuations in US dollar, in Turkish lira and in pound sterling.

7.3 Property, plant and equipment

In the first half of 2025, changes in Group structure mainly corresponded to the first-time consolidation of companies, in particular following the acquisition of Ovniver for €78 million, His Yalıtım for €51 million, as well as Kilwaughter and Fosroc for €37 million and €21 million, respectively. Assets held for sale mainly comprise certain CSR real estate assets. Impairment losses recognized against property, plant and equipment amounted to €8 million. Translation adjustments and restatements for hyperinflation primarily reflect the impacts of fluctuations in the US dollar, Indian rupee, Australian dollar, Chinese yuan renminbi and Canadian dollar.

In 2024, changes in Group structure mainly concerned the first-time consolidation of companies, in particular following the acquisition of CSR and Bailey for €1,604 million and €122 million, respectively, and purchase price allocation adjustments relating to the acquisition of Building Products of Canada for €54 million. Impairment losses were recognized for a total of €83 million.

Translation adjustments and restatements for hyperinflation primarily reflected the impacts of fluctuations in the US dollar, Brazilian real, Mexican peso, Australian dollar, Argentine peso and Turkish lira.

7.4 Right-of-use assets linked to leases

At June 30, 2025, right-of-use assets linked to leases related mainly to land and buildings for €2,360 million (€2,455 million at December 31, 2024) and to machinery and equipment for €523 million (€553 million at December 31, 2024).

7.5 Impairment review

Property, plant and equipment, right-of-use assets, goodwill, assets of equity-accounted companies and other intangible assets are tested for impairment for the December 31 closing and whenever there is an indication that the assets may be impaired. These tests consist of comparing the asset's carrying amount to its recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and its value in use, calculated either by a “simplified” approach which estimates value based on EBITDA multiples, or by reference to the net present value of the future cash flows expected to be derived from the asset.

For all CGUs, no evidence of impairment or trigger events requiring an impairment test were identified based on an analysis of first-half 2025 performance, future outlook, and the macroeconomic environment (see note 2.2 , p. 12).

The Group did not identify any material changes compared to the estimates used at December 31, 2024.

NOTE 8                   OTHER NON-CURRENT ASSETS

Changes in other non-current assets are analyzed below:

NET VALUE                                                                                                                                                                                            382                                           353                                              735

NOTE 9                         OTHER CURRENT AND NON-CURRENT LIABILITIES AND

PROVISIONS, CONTINGENT LIABILITIES AND LITIGATION

9.1 Other current and non-current liabilities and provisions

The table below provides a breakdown by type along with details of changes in other provisions and current and noncurrent liabilities:

Provisions              Provisions     Total for claims,                   for                   provisions litigation restructuring           Provisions     and and         costs and  for                   Provisions     Investment- investmentenvironmental                          personnel      customer       for other        Total               related         related

TOTAL PROVISIONS AND INVESTMENT-RELATED

LIABILITIES                                                                                           646                             213                        372                              736                     1,967                         319                         2,286

Provisions for litigation and environmental risks cover costs relating to litigation, environmental protection measures, as well as site rehabilitation and clean-up costs.

Provisions for litigation totaled €422 million at June 30, 2025 (€420 million at December 31, 2024). They cover in particular PFOA-related proceedings, asbestos-related litigation and the antitrust lawsuit in the Distribution sector in Switzerland. These provisions are described in further detail in note 9.2 "Contingent liabilities and litigation".

Provisions for other contingencies relate in particular to the DBMP LLC provision for asbestos-related litigation (see note 9.2.2, p. 31 on asbestos-related liabilities in the United States).

9.2 Contingent liabilities and litigation

9.2.1 Antitrust law and related proceedings

Investigation by the Swiss Competition Commission in the sanitary products wholesale industry

In November 2011, the Swiss Competition Commission (Commission suisse de la concurrence) opened an investigation into anti-competitive practices in the sanitary products wholesale industry. In May 2014, the Commission Secretariat issued a notice of complaints against Sanitas Troesch and other wholesalers in the industry alleging that Sanitas Troesch and some of its competitors had, among other things, agreed in 2005 and 2012 to lower gross prices.

The total fine imposed on all companies involved is CHF 80 million. For Sanitas Troesch, the fine is CHF 28.8 million. Sanitas Troesch appealed this decision on May 2, 2016 and continues to firmly refute the claims made. The hearing took place before the Federal Administrative Court on January 21, 2020 and the date on which the Federal Administrative Court will issue its decision is not yet known. However, a provision for claims and litigation was recognized at December 31, 2015 in an amount equivalent to the fine unchanged as at June 30, 2025.

Investigation by the Mexican competition authority in the flat glass market

In June 2022, the Mexican competition authority opened an investigation for alleged anticompetitive behaviour in the flat glass market and products derived from flat glass. In June 2025, the authority notified a statement of objections to SaintGobain México SA de CV and to another industry player. According to this statement of objections, the authority alleges that Saint-Gobain Glass México and one of its competitors coordinated price increases between September 2015 and November 2022.

Saint-Gobain México SA de CV has cooperated with the authority during its investigation. At this stage of the procedure, it is not possible to determine what the outcome of the Mexican authority’s decision will be, nor the amount of a potential fine, if any. Saint-Gobain México SA de CV rejects these allegations entirely.

Investigations by Competition Authorities in the additives and admixtures sector

The European Commission, the Competition and Markets Authority in the UK and the Turkish competition authority have launched investigations into anti-competitive practices in relation to the supply of chemical additives for cement and chemical admixtures for concrete and mortar. As of June 30, 2025, no statement of objections had yet been issued by the European Commission. The Competition and Markets Authority in the UK has announced on January 23, 2025 its decision to drop its investigation. The Turkish competition authority issued its decision on 30, June 2025 and imposed an administrative fine of approximately EUR 0.2 million on Chryso-Kat Katkı Malzemeleri San. ve Tic. AŞ.

Incidentally, class actions have been instituted against the Group in the United States and Canada in connection with these investigations which remain at a preliminary stage.

9.2.2 Asbestos-related litigation

Current legal actions related to asbestos are described below.

Asbestos-related litigation in France

Inexcusable fault lawsuits

Several French companies of the Group were the subject of actions by former employees of these companies (or persons claiming through them) for recognition of inexcusable fault following diseases recognized as being of occupational origin resulting from exposure to asbestos dust.

As of June 30, 2025, 49 actions are still pending.

Anxiety claims

Several Group’s subsidiaries that have operated facilities in France classified as containing asbestos, were the subject of anxiety claims brought by current or former employees not suffering from an occupational disease due to asbestos – claiming compensation for prejudice of anxiety suffered as a result of their alleged exposure to asbestos.

As of June 30, 2025, 185 lawsuits are still in progress.

Last, the total amount of compensation paid during the first half of 2025 for asbestos-related litigations in France – inexcusable faults lawsuits and anxiety claims – by the Group companies concerned totaled approximately EUR 0.4 million as of June 30, 2025 (approximately EUR 1.9 million as of June 30, 2024) and the total amount registered as provision for this asbestos-related litigations amounted to around EUR 10 million as of June 30, 2025 (around EUR 9 million as of December 31, 2024).

Situation in the United States

Measures taken to achieve an equitable and permanent resolution of the former CertainTeed Corporation’s legacy asbestos liabilities in the United States

DBMP LLC, an affiliate of CertainTeed LLC based in North Carolina, that holds the legacy asbestos liabilities of the former CertainTeed Corporation, filed, on January 23, 2020, a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Western District of North Carolina in Charlotte. The matter remains pending. The purpose of the filing is to achieve a certain, final and equitable resolution of all current and future claims arising from asbestos-containing products manufactured and sold by the former CertainTeed Corporation.

DBMP LLC intends to seek court authority to establish a trust under section 524(g) of the US Bankruptcy Code – a specific provision that is applicable to companies that face substantial numbers of asbestos-related claims – to achieve a fair and equitable resolution of its asbestos-related liabilities. Upon establishment of the trust, current and future plaintiffs with qualifying claims will be able to receive faster payment of their claims without the delay, stress and uncertainty of litigation in the tort system; at the same time, the creation and funding of such a trust will permanently and finally resolve DBMP LLC’s asbestos liability.

During the course of this bankruptcy process, which could take approximately eight years or more, all asbestos litigations have been stayed and all related costs suspended, providing DBMP LLC with the time and protection to negotiate an agreement to be approved on behalf of all claimants and by the court.

This action was taken as a result of the increasing risks presented in the US tort system. Despite the passage of time, the aging of the population and lessening opportunity for claimants to assert legitimate claims of exposure to the asbestoscontaining products of the former CertainTeed Corporation, naming practices in the tort system continued to result in a steady volume of claims against DBMP LLC, with no foreseeable end in sight. In addition, there has been, in general, an escalation of settlement demands and verdicts in the tort system.

Certain adversary proceedings have been filed by representatives of current and future asbestos plaintiffs against DBMP LLC, CertainTeed LLC, Saint-Gobain Corporation, Compagnie de Saint-Gobain and various other parties. No decisions on the merits of the claims have been made and such claims do not affect the Company’s financial assessment of the Chapter 11 case.

Impact on the financial statements

Following the commencement of the proceeding under Chapter 11 of the US Bankruptcy Code on January 23, 2020, the assets and liabilities of DBMP LLC and its wholly-owned subsidiary Millwork & Panel LLC, and in particular the provision for asbestos-related litigation in the United States, are no longer consolidated in the Group’s financial statements.

Nonetheless, because of a funding agreement between CertainTeed LLC and DBMP LLC by which CertainTeed LLC has agreed to fund the costs of the Chapter 11 case and, ultimately, the 524(g) trust, in both cases solely to the extent DBMP LLC is unable to do so in full, the Group recorded in its consolidated financial statements a provision corresponding to the amount of the estimated debt against DBMP LLC amounting to approximately USD 402 million as of June 30, 2025 (approximately USD 405 million as of December 31, 2024).

The Group’s consolidated income for the first half of 2025 is not impacted by the ongoing Chapter 11 proceeding described above.

As a result of this bankruptcy proceeding, all legal costs and indemnity payments related to DBMP LLC’s asbestos tort claims have been suspended, and no further charges in relation to such claims have been taken as of June, 30 2025 (as for the first half of 2024). Situation in Brazil

In Brazil, former employees of Brasilit, that once manufactured fiber cement containing asbestos, suffering from asbestosrelated occupational illnesses are offered, depending on the case, either financial compensation alone or lifetime medical assistance combined with financial compensation. Around 1,200 contractual instruments have accordingly been signed to date.

Two class actions were initiated against Brasilit in 2017 by two associations defending former employees exposed to asbestos at the São Caetano (São Paulo state) and Recife (Pernambuco state) plants, asking for their medical assistance and compensation to be revised. First and second instance decisions were rendered in connection with the suit related to the São Caetano plant respectively in July 2020 and July 2021, rejecting the claims of the plaintiffs. The latter have nevertheless appealed the second instance decision. First and second instance decisions were rendered in relation to Recife case, respectively in February and October 2022 rejecting the claiming party arguments. The plaintiff has appealed such second instance decision. 

A third class action was initiated against Brasilit in 2019 in Capivari (State of São Paulo) by the Labor prosecutor asking for health insurance, as well as collective moral damages, in favor of employees, former employees and their respective families, as well as subcontractors who were exposed to asbestos. First and second instance decisions were rendered respectively in September 2020 and May 2023 partly in favor of the plaintiffs. In particular, collective moral damages were granted to the plaintiffs, for an amount currently estimated as of June 30, 2025 (based on the indexation) at approximately BRL 9 million (approximately EUR 1.4 million). Brasilit has appealed the second instance decision.

Brasilit is subject to controls by the Ministry of Labor and continues to comply with all of its legal obligations with regard to medical assistance for its current and former employees.

In November 2017, the Supreme Court of Brazil decided to ban asbestos definitively across the country. Brasilit stopped using asbestos voluntarily as early as 2002. Situation in Australia

On July 9, 2024, the Company finalized the acquisition of CSR Ltd a leading player in building materials in Australia.

CSR Ltd and/or certain subsidiaries (CSR) were involved in mining asbestos and manufacturing and marketing products containing asbestos in Australia and exporting asbestos to the United States. CSR’s involvement in asbestos mining, and the manufacture of products containing asbestos, began in the early 1940s and ceased in 1977.

As a result of these activities, CSR has been named as a defendant in litigation in Australia and the United States. CSR has been settling claims since 1989. Default judgments have been sought and obtained against CSR in the US, without CSR being present or represented. Australian law does not recognize the jurisdiction of US courts in such matters. There have not been any US judgments enforced against CSR. Since its acquisition by the Group, CSR has paid asbestos related claims of  approximately AUD 25 million.

As of June 30, 2025, for the Group companies concerned, the total provision for asbestos-related litigation amounts to AUD 289 million corresponding to approximately EUR 161 million (AUD 225 million corresponding to approximately EUR 134 million as of December 31, 2024).

9.2.3            Environmental disputes

PFOA proceedings in the United States

Levels of PFOA (perfluorooctanoic acid) in excess of US Environmental Protection Agency (EPA) and/or state maximum contaminant levels for drinking water have been found in municipal water systems and private wells near Saint-Gobain Performance Plastics (SG PPL) : two current facilities in Hoosick Falls (New York), a facility in Merrimack (New Hampshire), and two former facilities in North Bennington (Vermont) in the United States. PFOA and PTFE (polytetrafluorethylene) have never been manufactured by these plants. SG PPL is a processor of PTFE which it purchases from third party suppliers and which in the past contained some PFOA.

SG PPL has voluntarily provided bottled water in all three communities, installed point-of-entry treatment systems to residents and businesses in all three communities, installed carbon filtration systems on the municipal water supply in Hoosick Falls and funded the installation of a carbon filtration system on the Merrimack Valley District’s municipal water supply. In addition, it has voluntarily funded construction of water line extensions in certain communities in the Merrimack and Bennington areas. The SG PPL facility in Merrimack was closed in 2024.

Without admitting liability, SG PPL has signed consent orders with the environmental regulators in New York in 2016 and 2023 in Vermont in 2017 and 2019 with respect to two different areas, and in New Hampshire in 2018, pursuant to which SG PPL has agreed to complete investigations, implement interim or final remediation measures at its current and former facilities and in the case of Vermont and New Hampshire, fund construction of water lines. Responsibility, if any, is expected to be shared with other parties as regards in particular the Hoosick Falls site. However, for some aspects, investigations are still on-going and the scope of responsibility for SG PPL arising from environmental remediation in New Hampshire and New York and, clean-up obligations at certain sites, has not yet been established. With respect to Vermont, the scope of the original remediation is defined and largely completed; future operation and maintenance obligations remain, and further testing and remediation are being discussed.

PFOA-related lawsuits alleging both health-related and economic damages claims have been filed in civil courts in New York, New Hampshire and Vermont, some of which are in the form of class actions. It is difficult to predict the timing or outcome of any such litigation, or whether any additional litigation will be brought against SG PPL, however, both the New York and Vermont class actions are settled.

On June 30, 2025, the provision recorded by the concerned company in respect of this matter amounts to approximately USD 249 million, or approximately EUR 213 million (approximately USD 249 million corresponding to approximately EUR 240 million as of December 31, 2024). This provision covers both remediation and litigation related to PFOA matters.

9.2.4 Other contingent liabilities

Grenfell Tower fire in the United Kingdom

The Celotex business whose control was transferred by Saint-Gobain Construction Products UK Limited outside of the Group in January 2024, provides insulation materials for specific applications for the building and construction industry. Insulation materials from two Celotex ranges were purchased via distributors and used in refurbishing Grenfell Tower, in London in 2015/2016, including as one component of the rainscreen cladding system designed and installed (by third parties) on the tower’s external facade.

After the Grenfell Tower fire on June 14, 2017, a Public Inquiry was constituted to consider, among other things, the modifications made to the building as part of the refurbishment, the role played by the various construction professionals, and the information provided by the manufacturers of the products used. The Inquiry’s work was divided into two phases. Its phase 1 report was published on October 30, 2019 and the phase 2 report was published on September 4, 2024. A criminal investigation into the circumstances of the fire is also in progress.

Following this fire, building owners, construction professionals and industry bodies are also considering the implications for high rise buildings, working practices and construction regulation more generally.

There are a large number of issues and circumstances that need to be explored and the full implications for Celotex Limited and Saint-Gobain Construction Products UK Limited are unlikely to be known for some time.

Civil proceedings in connection with Grenfell Tower brought against Celotex Limited and/or Saint-Gobain Construction Products UK Limited and a number of other defendants were issued by bereaved, survivors and residents and emergency responders. 

Following confidential alternative dispute resolution processes involving a number of parties, confidential settlements have been concluded in 2024 in relation to the majority of these claims and resulted in payments to relevant claimants without admission of liability. Celotex Limited is continuing to engage with a number of other defendants in an alternative dispute resolution process to seek to resolve the remaining claims brought by the emergency responders.

In October 2024, the owner of Grenfell Tower at the time of the fire has issued a claim against Celotex Limited and Saint-Gobain Construction Products UK Limited, and a number of third parties, for losses arising as a result of the fire. This claim is at a preliminary stage.

The extent to which Celotex Limited and Saint-Gobain Construction Products UK Limited may incur further financial expenditure or civil or criminal liability in connection with the production, marketing, supply or use of their products is currently unclear and these companies are currently unable to make a reliable estimate of their potential liability in this respect.

NOTE 10                    FINANCING AND FINANCIAL INSTRUMENTS

10.1 Net financial income (expense)

Net financial income (expense) includes borrowing and other financing costs, income from cash and cash equivalents, interest on lease liabilities, interest cost for pension and other post-employment benefit plans net of the return on plan assets, and other financial income and expense.

Net financial income (expense) for first-half 2025 and 2024 comprises:

10.2 Net debt

10.2.1 Long- and short-term debt

Long- and short-term debt consists of the following:

Changes in the Group's long-term debt (excluding lease liabilities) can be analyzed as follows:

The main changes with an impact on cash are described in note 10.2.3. The main change with no cash impact in the "Other" column relates to the reclassification of debt maturing within 12 months in the current portion of long-term debt.

The fair value of gross long-term debt (including the current portion), excluding lease liabilities, managed by Compagnie de Saint-Gobain amounts to €14.0 billion at June 30, 2025 (carrying amount: €14.0 billion). The fair value of bonds corresponds to the market price at the last market quotation of the year. For other borrowings, fair value is considered equal to the amount repayable.

10.2.2 Gross debt repayment schedule

The schedule of the Group's total gross debt, at amortized cost, at June 30, 2025 is as follows:

10.2.3       Bonds

On March 17, 2025, Compagnie de Saint-Gobain redeemed a bond at maturity, for an amount of €750 million with a coupon of 1.00%.

On April 4, 2025, Compagnie de Saint-Gobain issued a €1. 2 billion bond divided into two tranches:

•          a €700 million tranche maturing April 4, 2028 and paying a coupon of 2.75%; •                      a €500 million tranche maturing April 4, 2033 and paying a coupon of 3.50%.

10.2.4 Perpetual bonds

In 1985, Compagnie de Saint-Gobain issued 25,000 perpetual bonds with a face value of ECU 5,000 (€5,000 today).

A total of 19,541 perpetual bonds have since been bought back and canceled. A total of 5,459 perpetual bonds therefore remained outstanding at June 30, 2025, representing a face value of approximately €27 million.

The bonds bear interest at a variable rate (average of interbank rates offered by a panel of reference banks for six-month euro deposits).

The bonds are not redeemable and interest on the bonds is classified as a component of finance costs.

10.2.5 Non-voting participating securities

In June 1983, Compagnie de Saint-Gobain issued 1,288,299 non-voting participating securities with a face value of FRF 1,000. Their face value is now €152.45, following their translation into euros in 1999.

A certain number of these participating securities have been bought back over the years. At June 30, 2025, 606,883 securities are still outstanding with an aggregate face value of €92.5 million.

Interest on the securities ranges from 75% to 125% of the average corporate bond yield (TMO), based on the Group's consolidated income.

In April 1984, 194,633 non-voting participating securities were issued by Compagnie de Saint-Gobain with a face value of ECU 1,000 (€1,000 today).

A certain number of these participating securities has been bought back over the years. At June 30, 2025, 77,516 securities are still outstanding, with an aggregate face value of €77.5 million.

Interest comprises (i) a fixed portion of 7.5% paid per year applicable to 60% of the nominal amount of the security, and (ii) a variable portion applicable to the remaining 40% of the nominal amount of the security, which is linked to consolidated net income of the previous year and to the reference six-month Euribor rate +7/8%.

These participating securities are not redeemable and the interest paid on them is classified as a component of finance costs.

10.2.6 Financing programs

The Group has a number of medium- and long-term financing programs (Medium-Term Notes) and short-term financing programs (Commercial Paper).

The state of these programs is as follows:

*               Equivalent of USD 1,000 million based on the exchange rate at June 30, 2025.

In accordance with market practices, Negotiable European Commercial Paper (NEU CP), US Commercial Paper and Euro Commercial Paper are generally issued with maturities of one to six months. They are treated as variable-rate debt since they are rolled over at frequent intervals.

10.2.7 Syndicated line of credit

Compagnie de Saint-Gobain has a €4 billion syndicated line of credit that is intended to provide a secure source of financing for the Group (including as additional backing for its short-term NEU CP, US Commercial Paper and Euro Commercial Paper programs).

This syndicated line of credit is not subject to any hard covenants. It was initially due to expire in December 2028, with two one-year rollover options; the first one-year rollover option was exercised in November 2024, extending the line's expiry date to December 2029.

The facility is a "Sustainability-Linked Loan" (SLL) on which the margin is indexed to three KPIs set out in Saint-Gobain's sustainable roadmap (reduction of scope 1 and 2 CO₂ emissions, reduction in non-recovered production waste and limited work accident frequency rate).

At June 30, 2025, no drawdowns had been made on this credit facility.

10.2.8 Receivables securitization programs

The Group has set up two receivables securitization programs, one through its French subsidiary Point.P Finances GIE, and the other through its US subsidiary, Saint-Gobain Receivables Corporation. The receivables sold under the two programs are not deconsolidated.

The French program, covering an amount of up to €500 million, represented €500 million at both June 30, 2025 and December 31, 2024.

Based on observed seasonal fluctuations in receivables included in the program and on the contract's features, €370 million of this amount is classified as non-current and the remaining balance as current.

Under the US program, covering an amount of up to USD 500 million, a total of USD 196 million had been used at June 30, 2025, representing the equivalent of €167 million compared with USD 225 million representing the equivalent of  €217 million at December 31, 2024.

10.2.9 Factoring

The Group has set up several trade receivables factoring programs. The main countries concerned are France, Italy, Spain, China and Japan. Based on an analysis of the risks and rewards as defined by IFRS 9, the Group has deconsolidated all of the receivables sold under these programs. A total of €710 million in factored receivables was deconsolidated at June 30, 2025, compared to €651 million at December 31, 2024.

10.2.10 Reverse factoring

The Group has set up several programs for the reverse factoring of trade payables. The main countries concerned are Brazil and Mexico.

At June 30, 2025, trade payables reverse factored under these programs amounted to €108 million (€106 million at December 31, 2024). The programs enabled the Group to slightly extend the contractual payment terms on an estimated €49 million at June 30, 2025 (€49 million at December 31, 2024).

None of the reverse factored payables have been reclassified as financial debt.

10.3 Financial instruments

The Group uses interest rate, foreign exchange, energy (swaps and VPPAs), commodity and equity derivatives to hedge its exposure to changes in the underlying items that may arise in the normal course of business.

The following table presents a breakdown of the main derivatives used by the Group:

10.3.1                Credit value adjustments to derivative instruments

Credit value adjustments to derivative instruments are calculated in accordance with IFRS 13 based on historical probabilities of default derived from calculations performed by a leading rating agency and on the estimated loss given default. At June 30, 2025, credit value adjustments were not material.

10.3.2 Impact on equity of financial instruments qualifying for cash flow hedge accounting

At June 30, 2025, the IFRS cash flow hedge reserve carried in equity had a debit balance of €41 million, consisting mainly of:

•          a debit balance of €19 million in relation to cross-currency swaps classified as cash flow hedges that are used to convert a GBP bond issue into euros;

•          a debit balance of €36 million corresponding to changes in fair value of energy hedges classified as cash flow hedges;

•          a credit balance of €4 million corresponding to changes in fair value of interest rate hedges classified as cash flow hedges;

•          a credit balance of €10 million corresponding to changes in fair value of currency hedges classified as cash flow hedges.

The ineffective portion of cash flow hedge derivatives is not material.

10.3.3 Impact on income of financial instruments not qualifying for hedge accounting

For derivatives classified as financial assets and liabilities at fair value through profit or loss, fair value remeasurements recognized in the income statement represented a gain of €28 million at June 30, 2025 compared to a gain of €70 million at December 31, 2024.

10.3.4 Group debt structure (excluding lease liabilities)

The weighted average interest rate on total gross debt under IFRS and after hedging (interest rate swaps and crosscurrency swaps) was 3.1% at June 30, 2025, compared with 3.0% at December 31, 2024.

The table below presents the breakdown by interest rate (fixed or variable) of the Group's gross debt at June 30, 2025, taking into account interest rate and cross-currency swaps.

Gross debt, excluding lease liabilities

10.4 Financial assets and liabilities

Financial assets and liabilities are classified as follows in accordance with IFRS 9: At June 30, 2025

                                                                                           Financial instruments                                                               Financial instruments at fair value

At December 31, 2024

                                                                                         Financial instruments                                                                Financial instruments at fair value

NOTE 11                       SHAREHOLDERS’ EQUITY AND EARNINGS PER SHARE

11.1 Equity

11.1.1 Equity

At June 30, 2025, Saint-Gobain’s capital stock was composed of 499,063,699 shares with a par value of €4 each (499,050,774 shares at December 31, 2024).

11.1.2 Cumulative translation adjustments

Translation adjustments and restatements for hyperinflation recognized through other comprehensive income amounted to a negative €1,768 million in first-half 2025, of which a negative €1,716 million attributable to the Group and a negative €52 million to non-controlling interests.

The main cumulative translation adjustments at June 30, 2025 are shown below by currency (excluding non-controlling interests):

11.1.3 Number of shares

Number of shares

NUMBER OF SHARES AT DECEMBER 31, 2024                                                                                                                                       499,050,774                                            496,879,548

11.1.4 Dividends

The Annual Shareholders' Meeting of June 5, 2025 approved the recommended dividend payout for 2024 representing €2.20 per share (€2.10 per share for 2023). The ex-dividend date was June 9 and the dividend was paid on June 11, 2025.

11.2 Earnings per share

11.2.1 Basic earnings per share

Basic earnings per share are as follows:

11.2.2 Diluted earnings per share

Diluted earnings per share are as follows:

The weighted average number of shares assuming full dilution is calculated based on the weighted average number of shares outstanding, assuming conversion of all dilutive instruments. The Group's dilutive instruments include stock options and performance share grants, corresponding to a weighted average of 117,141 and 3,794,316 instruments, respectively, at June 30, 2025.

NOTE 12           TAX

12.1 Income taxes

In accordance with IAS 34, the recognized tax expense is determined by reference to the projected effective tax rate at the end of the year restated for the one-off items of the half-year period.

Theoretical tax expense was reconciled with current tax expense using a tax rate of 25.82% in first-half 2025 (identical to the rate in first-half 2024), and can be analyzed as follows:

The contribution of countries with low tax rates explains the impact of the different tax rates applicable outside France.

Due to its scale, the Saint-Gobain Group is concerned by the OECD's Pillar Two rules introducing a minimum tax rate of 15%, applicable since fiscal year 2024.

Accordingly, at June 30, 2025, the Group has reflected the estimated impact of this new standard in calculating its projected effective tax rate, taking into account the transitional “safe harbors” introduced by the OECD. The estimated tax charge remains immaterial in relation to the Group's total tax charge.

12.2 Deferred tax

In the balance sheet, changes in net deferred tax assets and liabilities break down as follows:

Net deferred tax

(in EUR millions)                                                                                                                                                                                                                                                                      asset/(liability)

NET VALUE AT DECEMBER 31, 2024                                                                                                                                                                                                                                                (575)

Changes in Group structure in first-half 2025 mainly relate to the first-time consolidation of Fosroc and Ovniver. In 2024, changes in Group structure related mainly to the first-time consolidation of Bailey and CSR.

With regard to the impact of Pillar Two rules on deferred taxes, in accordance with the temporary exemption introduced by IAS 12.4A, the Saint-Gobain Group did not recognize any deferred tax at June 30, 2025.

NOTE 13               SUBSEQUENT EVENTS

The Group has not identified any disclosable events occurring subsequent to the balance sheet date, other than as described in the previous notes.

COMPAGNIE DE SAINT-GOBAIN

Société Anonyme

Tour Saint-Gobain

12, place de l’Iris 

92400 Courbevoie

_______________________________________________

Statutory Auditors’ Review Report on the Half-yearly 

Financial Information

For the period from January 1 to June 30, 2025

KPMG S.A.

Tour EQHO

2, avenue Gambetta – CS 60055 92066 Paris-La Défense Cedex

S.A. au capital de 5 497 100 euros

775 726 417 RCS Nanterre

Société de Commissariat aux Comptes inscrite à la Compagnie Régionale de Versailles et du Centre  Deloitte & Associés 

6, place de la Pyramide

92908 Paris-La Défense Cedex

S.A.S. au capital de 2 201 424 € 572 028 041 RCS Nanterre

Société de Commissariat aux Comptes inscrite à la

Compagnie Régionale de Versailles et du Centre

COMPAGNIE DE SAINT-GOBAIN

Société Anonyme

Tour Saint-Gobain

12, place de l’Iris 

92400 Courbevoie

_______________________________________________

Statutory Auditors’ Review Report on the Half-yearly 

Financial Information

For the period from January 1 to June 30, 2025

This is a free translation into English of the statutory auditors’ review report on the half-yearly financial information issued in French and is provided solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in the Group’s half-yearly management report. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

To the Shareholders, 

In compliance with the assignment entrusted to us by your Shareholders’ meetings and in accordance with the requirements of article L. 451-1-2-III of the French Monetary and Financial Code ("code monétaire et financier"), we hereby report to you on:

▪  the review of the accompanying condensed half-yearly consolidated financial statements of Compagnie de Saint-Gobain, for the period from January 1 to June 30, 2025,

▪  the verification of the information presented in the half-yearly management report.

These condensed half-yearly consolidated financial statements are the responsibility of Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

Conclusion on the financial statements  

We conducted our review in accordance with professional standards applicable in France.

 A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs as adopted by the European Union applicable to interim financial information.

Specific verification

We have also verified the information presented in the half-yearly management report on the condensed half-yearly consolidated financial statements subject to our review.

We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.

Paris-La Défense, July 31, 2025

Les commissaires aux comptes

      The Statutory Auditors

     French original signed by

                                         KPMG S.A.                                                                                            DELOITTE & ASSOCIES 

Alexandra Saastamoinen              Laurent Chillet                                                        Frédéric Gourd          

2 l COMPAGNIE DE SAINT-GOBAIN l Statutory Auditors’ Review on the Half-yearly Financial Information l Period from January 1 to June 30, 2025

STATEMENT BY THE PERSONS RESPONSIBLE 

FOR THE INTERIM FINANCIAL REPORT AS OF JUNE 30, 2025

I hereby declare that, to the best of my knowledge, the condensed interim consolidated financial statements for the six-month period ended June 30, 2025 have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and results of Compagnie de Saint-Gobain and its consolidated subsidiaries, and that the interim management report gives a fair description of the material events that occurred in the first six months of the financial year, their impact on the financial statements and the main related-party transactions, and a description of the main risks and main uncertainties for the second half of 2025.

Courbevoie, July 31, 2025

Benoit Bazin                                                             Maud Thuaudet

Chairman and Chief Executive Officer                     Chief Financial Officer 

Compagnie de Saint-Gobain                                     Compagnie de Saint-Gobain

Compagnie de Saint-Gobain

Tour Saint-Gobain • 12, place de l’Iris • 92400 Courbevoie • France • Tél. +33 (0)1 88 54 00 00 • www.saint-gobain.com

S.A. au capital de € 1,996,203,096• 542 039 532 R.C.S Nanterre • APE 7010 Z