TLDR
- Amrize Q2 net income climbed 14.4% to $476 million on stronger project demand.
- Revenue rose 8.6% to $3.49 billion as major projects increased sales volumes.
- Adjusted EBITDA increased 5.8%, but higher costs reduced quarterly margins.
- Amrize expects 2026 revenue of $12.5 billion to $12.7 billion despite inflation.
- Shares fell to $48.58 after hours as rising costs weighed on market sentiment.
Amrize (AMRZ) reported stronger second-quarter profit and revenue, but cost pressure weakened margins across its North American construction network. Net income climbed 14.4% to $476 million, while revenue rose 8.6% to $3.49 billion. Amrize shares closed 3.14% lower at $51.22, then fell 5.15% after hours to $48.58.
Amrize Q2 Revenue Growth Outpaces Margin Performance
Amrize generated $3.49 billion in second-quarter revenue, compared with $3.22 billion one year earlier. Higher volumes added $200 million, while recently acquired businesses contributed another $54 million. Aggregates pricing, foreign exchange gains, and demand from large infrastructure projects across key markets also supported growth.
Net income increased to $476 million from $416 million during the same quarter last year. Diluted earnings per share rose 14.7% to $0.86, while adjusted earnings reached $0.88. Adjusted EBITDA increased 5.8% to $986 million, although the margin fell 80 basis points.
Higher freight, diesel, and raw material costs reduced the benefit from stronger sales and savings. Amrize responded with price increases, fuel surcharges, and its ASPIRE cost program. However, oil-linked inflation continued to pressure earnings and influenced the updated annual outlook.
Building Materials Leads Growth While Roofing Costs Weigh
Building Materials revenue rose 8.2% to $2.45 billion during the second quarter. Cement volumes increased 5.0%, while aggregates volumes advanced 6.5% from last year. Acquisitions and stronger aggregates pricing also supported the segment.
Segment adjusted EBITDA increased 5.2% to $793 million, despite higher freight and diesel expenses. Cement pricing declined 0.2% in constant currency, but improved from the first quarter. Aggregates pricing rose 4.0% on a constant-currency and freight-adjusted basis.
Commercial and residential roofing demand lifted Building Envelope revenue 9.4% to $1.05 billion. Segment adjusted EBITDA fell 5.2% to $237 million during the quarter. Higher freight and raw material costs outweighed volume growth and reduced the segment margin.
Amrize Updates Guidance and Returns Cash to Shareholders
Amrize now expects full-year revenue between $12.5 billion and $12.7 billion. The company forecasts 2026 adjusted EBITDA between $3.1 billion and $3.2 billion. Management expects stronger pricing, but oil-related inflation will remain an earnings headwind.
The company targets about $80 million in ASPIRE savings during 2026. Amrize also plans roughly $900 million in capital spending for expansion and efficiency projects. Recent Texas acquisitions should further strengthen its cement, aggregates, and ready-mix network over time.
Amrize returned $502 million through dividends and repurchases, including $197 million under its buyback program. Net debt reached $5.28 billion, while the net leverage ratio stood at 1.7 times. The company also revised prior periods after finding immaterial accounting errors, mainly involving extended warranty revenue.
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