Amrize Raises Sales Outlook as Cost Pressure Weighs
Adjusted EBITDA margin narrowed 80 basis points to 28.2% as input and transportation costs rose.
Amrize (AMRZ), the building-materials company, raised its full-year revenue outlook after second-quarter sales growth accelerated, while inflation prompted a lower profit forecast. Revenue rose 8.6% from a year earlier, up from 4.7% growth in the first quarter, with organic growth of 6.7%.
Second-quarter revenue reached $3.494 billion, driven by $200 million from higher volumes and $54 million from Building Materials acquisitions. Net income increased 14.4% to $476 million, and diluted earnings rose 14.7% to $0.86 a share. Adjusted earnings increased 8.6% to $0.88 a share.
Adjusted EBITDA increased 5.8% to $986 million, trailing revenue growth as higher freight, diesel and raw-material costs weighed on profitability. The adjusted EBITDA margin contracted from 29.0% a year earlier, even as the net-income margin expanded 70 basis points to 13.6%.
Building Materials revenue rose 8.2% to $2.445 billion, while segment adjusted EBITDA increased 5.2% to $793 million. Its margin narrowed 100 basis points to 32.4%, reversing the first quarter's expansion as volume growth moderated to 5.0% in cement and 6.5% in aggregates. Cement pricing declined 0.2% from a year earlier in constant currency, though it improved 2.1% sequentially after price increases took effect. Aggregates pricing rose 4.0% on a constant-currency, freight-adjusted basis.
Building Envelope revenue rebounded 9.4% to $1.049 billion as commercial and residential roofing volumes increased, following weak roofing demand and pricing in the first quarter. Softer weatherproofing and insulation demand partly offset those gains. Segment adjusted EBITDA fell 5.2% to $237 million, and its margin contracted 350 basis points to 22.6% as freight and raw-material costs outweighed the higher volumes.
Amrize now expects full-year revenue of $12.5 billion to $12.7 billion, raising the midpoint by about $195 million on stronger demand. It lowered adjusted EBITDA guidance to $3.1 billion to $3.2 billion, cutting the midpoint by about $145 million as oil-driven inflation lifted costs ahead of pricing actions. The company now projects flat to low-single-digit cement pricing growth and high-single-digit residential-roofing volume growth, while maintaining its aggregates-pricing and commercial-roofing forecasts.
ASPIRE savings will reach about $80 million in 2026, and Building Envelope price-cost performance is expected to improve in the second half as additional price increases take effect. The company repurchased $197 million of shares during the quarter under its $1 billion authorization and returned $502 million to shareholders, including $305 million of dividends. Those pricing and savings measures now carry more of the burden of converting stronger demand into earnings.