암라이즈(AMRZ) 2026년 3분기 실적 발표 콘퍼런스 콜: 가격 정책이 성장을 뒷받침, 가이던스 업데이트

핵심 요약

• 암라이즈는 기상 악화로 인한 판매량 압박에도 불구하고 가격 인상, 할증료, 최근 인수 합병 효과에 힘입어 2026년 3분기 매출이 2.2% 증가했다고 밝혔다.
• 순이익은 5억 5,800만 달러로 3.3% 증가했고, 희석 EPS는 1.02달러로 4.1% 상승했으며, 조정 EBITDA는 11억 달러에 달했다.
• 건설 자재 부문의 조정 EBITDA는 9억 3,800만 달러로 2.7% 증가했으며, 해당 부문 마진은 30bp 확장되었다. 골재 가격은 6.9% 상승했고 시멘트 가격은 1.8% 인상되었다.
• 건물 외장 부문 매출은 9억 2,900만 달러로 3.6% 증가했으나, 원자재 및 운임 인플레이션이 상업용 지붕 자재 모멘텀을 상쇄함에 따라 조정 EBITDA는 14.6% 감소했다.
• 경영진은 2026년 가이던스를 매출 122억~124억 달러, EBITDA 29억 5,000만~30억 5,000만 달러로 수정했다.
• 암라이즈는 10월 28일 10억 달러 규모의 자사주 매입 승인을 완료했으며, 연초 이후 배당금과 자사주 매입을 통해 주주에게 총 11억 달러를 환원했다.

주요 재무 데이터

사업 및 영업 실적

건설 자재 부문

건설 자재 부문은 가격 인상, 인수 합병, ASPIRE 프로그램을 통한 비용 절감 효과를 누렸다. 시멘트 가격은 전 분기 0.2% 하락에서 반등해 1.8% 상승했으며, 골재 가격 상승률은 2분기 4%에서 6.9%로 확대되었다.

시멘트 판매량은 여러 지역의 불리한 기상 조건으로 인해 4.2% 감소했다. 골재 판매량은 0.2% 감소했으나 인수 합병과 견조한 인프라 수요가 기상 악화로 인한 부진을 일부 상쇄했다.

경영진은 가격 인상, 할증료 부과, 비용 통제로 해당 부문에서 긍정적인 가격-비용 스프레드를 달성했다고 밝혔다. 암라이즈는 또한 텍사스, 앨버타, 퀘벡 등의 시장에서 시멘트 생산능력을 확충하고 병목 현상을 해소하고 있으며, 6개의 채석장 프로젝트를 통해 1억 5,000만 톤 이상의 매장량을 추가할 예정이다.

PB 매터리얼스와 라피드 레디믹스는 회사의 초기 기대치를 상회하는 실적을 이어갔다. 경영진은 두 인수건 모두 2026년 EPS를 증대시키고 암라이즈의 텍사스 골재 및 시멘트 네트워크와 시너지를 창출할 것으로 예상한다.

건물 외장 부문

상업용 지붕 자재 판매량은 시스템 판매와 대규모 데이터 센터, 창고, 교육 시설 프로젝트에 힘입어 견조한세를 유지했다. 반면 주택용 지붕 자재는 기존 주택 매매 둔화, 주택 구매력 제한, 폭풍 관련 지붕 교체 수요 감소로 인해 약세를 지속했다.

건물 외장 부문의 가격은 전 분기 대비 개선되었으며 전년 동기 대비 상승세로 돌아섰다. 그러나 석유화학 기반 원자재 가격 및 운임 상승이 수익성을 압박했고, 싱글 판매량 감소로 인해 영업 레버리지 효과가 감소했다.

비용 절감 및 자본 배분

ASPIRE 프로그램은 연초 이후 7,300만 달러의 비용 절감을 달성했다. 경영진은 2026년 목표치인 8,000만 달러 달성과 2028년까지의 장기 목표치인 2억 5,000만 달러 달성에 자신감을 유지하고 있다.

암라이즈는 연초 이후 주주들에게 11억 달러를 환원했다. 완료된 10억 달러 규모의 자사주 매입 프로그램은 주식 자본의 약 4%에 해당한다. 이사회는 또한 11월 18일에 지급될 주당 0.11달러의 3분기 배당금을 의결했다.

경영진 가이던스

암라이즈는 이제 2026년 전체 매출을 122억~124억 달러, EBITDA를 29억 5,000만~30억 5,000만 달러로 전망한다.

건설 자재 부문의 경우, 경영진은 4분기 시멘트 가격이 상승세를 유지하고 연간 시멘트 가격은 보합에서 한 자릿수 초반대의 상승률을 기록할 것으로 예상한다. 연간 골재 가격은 한 자릿수 중반대의 상승률을 보일 것으로 예상된다. 회사는 해당 부문이 4분기에도 긍정적인 가격-비용 스프레드를 유지할 것으로 전망한다.

건물 외장 부문의 경우, 경영진은 가격 인상 및 할증료 반영을 통해 4분기 가격-비용 스프레드가 전 분기 대비 개선될 것으로 기대한다. 다만 전년 동기 대비 인플레이션이 당초 예상보다 높았던 만큼 회사는 가격-비용 스프레드의 플러스 전환 시점을 2027년으로 예상하고 있다.

경영진은 일반적인 계절적 재고 축소가 4분기 싱글 수요에 부담을 줄 것으로 예상한다. 또한 수정된 전망에는 2025년 4분기에 기록되었던 3,600만 달러의 순보험 이익 부재가 반영되어 있다.

리스크 및 주요 관전 포인트

• 운임, 경유 및 원자재 비용 상승은 특히 건물 외장 부문의 수익성에 지속적인 부정적 요인으로 남아 있다.
• 높은 금리와 구매력 제약은 건설 프로젝트를 지연시키고 주택 수요에 지속적으로 부담을 줄 수 있다.
• 기상 악화로 3분기 시멘트 및 골재 판매량이 차질을 빚었으며, 대형 폭풍의 부재로 주택용 지붕 교체 활동이 감소했다.
• 유통업체의 계절적 재고 축소가 4분기 싱글 출하량에 부담을 줄 것으로 예상된다.
• 경영진은 건물 외장 부문이 긍정적인 가격-비용 스프레드로 복귀하는 시기는 부분적으로 향후 인플레이션 환경에 달려 있다고 밝혔다.
• 사업 투자 증가로 인해 연간 잉여현금흐름 전환율은 회사의 목표치인 50%를 하회할 것으로 예상된다.

애널리스트 Q&A 주요 내용

가격-비용 스프레드 회복: 경영진은 가격 인상, 할증료, ASPIRE 절감액에 힘입어 건설 자재 부문이 4분기에도 긍정적인 가격-비용 스프레드를 유지할 것이라는 자신감을 표명했다. 건물 외장 부문의 경우 경영진이 구체적인 분기를 밝히지는 않았으나 2027년에 회복될 것으로 예상된다.

2027년 수요: 경영진은 2027년이 암라이즈의 성장의 해가 될 것으로 기대한다고 밝혔다. 금리가 프로젝트 일정에 영향을 미칠 수 있지만 상업용 지붕 자재 수요와 데이터 센터, 제조업, 에너지 및 인프라 프로젝트 파이프라인이 여전히 성장을 뒷받침하고 있다.

M&A 전략: 암라이즈는 자사의 인수 파이프라인이 견고하다고 설명했다. 경영진은 PB 매터리얼스와 라피드 레디믹스의 기여를 강조했으나, 향후 거래가 보울트온(bolt-on) 방식일지 더 큰 규모의 거래일지는 명시하지 않았다.

건설 자재 부문 판매량: 경영진은 3분기 부진의 주요 원인을 기상 조건과 2025년 중반 성장이 시작된 이후 까다로워진 비교 기준 때문으로 돌렸다. 금리 영향에 따라 달라질 수 있지만 4분기 및 2027년으로 이어지는 판매량에 대해서는 자신감을 유지했다.

시멘트 수입: 경영진은 2026년 암라이즈의 시멘트 수입이 거의 없었다고 밝혔다. 회사의 전략은 수입 시멘트보다는 국내 공급망, 공장 생산능력 확충 및 운영 효율성에 초점을 맞추고 있다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, and welcome to the Amrize Q3 2026 Earnings Conference Call. [Operator Instructions] Also as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.

I will now turn the call over to Dillon Cumming.

Dillon Cumming

Thank you, and good morning. This is Dillon Cumming, Vice President of Investor Relations for Amrize. Welcome to Amrize's Third Quarter 2026 Earnings Conference Call. We released our third quarter financial results yesterday after the market closed. You can find both our earnings release and presentation for today's call in the Investor Relations section of our website at investors.amrize.com.

On the call with me today is Jan Jenisch, Chairman and CEO; and Sam Poletti, CFO. Before we begin, during the call and in our slide presentation, we reference certain non-GAAP financial measures which we believe provide useful information for investors. We include reconciliations of non-GAAP financial measures to U.S. GAAP in our earnings release and slide presentation.

As a reminder, today's call is being webcast live and recorded. The transcript and recording of this conference call will be posted to our website. Any statements made about future results and performance, plans, expectations and objectives are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those presented during the call due to various factors, including, but not limited to, those discussed in our Form 10-K and in other reports filed with the SEC.

The company undertakes no obligation to publicly update or revise any forward-looking statements. Please also note that in today's presentation, certain prior period financial information includes revisions that were not material to any previously issued consolidated financial statements. Additional information regarding these revisions can be found in our Form 8-K filed with the SEC yesterday after the U.S. market close.

With that, I will now turn the call over to Jan.

Jan Jenisch

Thank you, Dillon, and thank you all for joining us today. I will begin with our top highlights and takeaways. We made important progress across our business in the third quarter. We increased revenue 2.2% on strong pricing and contributions from our recent acquisitions. This demonstrates the strength of our network and strategic footprint to deliver resilient results even with weather patterns affecting volumes across construction markets.

We grew net income 3.3%, and to $558 million and increased adjusted EBITDA to $1.1 billion. Diluted earnings per share increased 4.1% to $1.02. And Importantly, we expanded our margins in Building Materials by 30 basis points. This was thanks to strong pricing growth in cement and aggregates and solid traction with our energy, fuel and freight surcharges to offset oil price-driven cost inflation as well and excellent progress with our ASPIRE savings program. These results demonstrate our strong market position and our commitment to operational efficiency.

Our Building Envelope business continued to see strong commercial roofing momentum led by expanded system sales, large-scale data centers and industrial projects, while residential roofing was soft due to lower sales of both new and existing homes as well as software reroofing activity. Segment profitability was affected by higher freight, raw material costs and the lower shingles volumes. We are proactively managing what we can control.

Our pricing improved sequentially and year-over-year, and we had solid traction with our fuel and freight surcharges. We continue to successfully execute on our capital allocation strategy of investing for profitable growth through CapEx and M&A, while returning cash to our shareholders. We executed on $262 million of CapEx in the quarter, focused on attractive growth projects to expand production and improve efficiency and best serve our customers.

Our recent acquisitions, PB materials and rapid ready mix have been excellent additions to Amrize. Both positively contributing to our results and further strengthening our footprint in the Texas market. Through the third quarter, we have delivered $1.1 billion of cash to shareholders with our dividends and share repurchases.

As of October 28, yesterday, we successfully completed our $1 billion share repurchase authorization. And our Board has declared a third quarter dividend of $0.11 per share. That's no look at our market environment. In this quarter, we saw weather patterns impact construction volumes. In commercial construction, which makes up half of our business, we continue to see a strong pipeline of mega projects leading the way for both materials and roofing systems.

Billing Materials projects that broke ground in the third and fourth quarter of last year are now converting into building envelope demand. While elevated interest rates could affect the timing of some projects, we expect continued strong long-term demand for these projects, particularly data centers, advanced manufacturing plants and energy projects. These carry multiyear run times and our footprint, scale and distribution network with over 1,000 sites across North America is uniquely positioned to serve customers for these attractive projects.

In addition to the commercial projects, the required infrastructure upgrades associated with these projects offer a variety of opportunities for our business. Turning to infrastructure. Sales of federally funded projects continue to support steady demand. The recent infrastructure funding expansion should continue to offer near-term support for infrastructure activity in the U.S. and we expect the successor bill to drive a long-term infrastructure tailwind for our business.

The Draft Build America 250 Act includes strong funding for cement and aggregates intensive projects. In Canada, the federal and provincial governments are committing substantial funding to infrastructure. This includes their build communities strong fund and Ontario's 10-year capital plan with investments in national infrastructure, energy, public transportation, health care and housing. These programs are expected to support long-term demand for cement, aggregates and once in Canada.

Within the residential sector, interest rates and affordability challenges continue to limit new construction in the quarter. Reroofing remained pressured by a lack of significant storms and lower levels of existing home turnover. We expect this environment to continue through at least the fourth quarter with normal seasonal destocking trends likely to weigh on Q4 shingle demand.

We expect an eventual return to normal weather patterns and the structural housing shortage to eventually drive a return to industry growth over the long term. Overall, we see makeup projects continuing to lead the way for Amrize. Underlying growth trends, including onshoring of manufacturing, AI, energy, infrastructure and population growth are resilient, growing and long term in nature. And these projects have significant size and scale for Amrize.

Let me share some examples of our customer projects underway. In North Dakota, we are supplying both building materials and our Elevate MAX PVC roofing system for a new data center project. In Harbor, Texas, we are supplying cement, aggregates and ready-mix concrete for a new 5-gigawatt campus that represents the second largest data center under construction taxes.

In Louisiana, we are supplying high-performance cement and Slack for a new 12-mile long water infrastructure channel that build the work, access flood nodes to protect nearby communities. In the Toronto area, we are supplying aggregates and concrete for a large hiring infrastructure modernization.

On the building envelope side, we're supplying our Elevate Italy TPO system for a new cold storage facility in the Pacific Northwest. And both our Duralast and loved brands are supplying multiple education and school construction projects across North America. These are just some examples of our current projects and our pipeline continues to grow. Let us turn to our ASPIRE program.

As we continue to deliver for our customers, we are also driving synergies and operational excellence with ASPIRE. Our team has been successful in executing hundreds of projects across raw materials, services, logistics and equipment. We have an ongoing focus on strategic sourcing initiatives as well. For example, we have onboarded about 1,000 new suppliers.

We have now achieved year-to-date savings of $73 million, which has proven especially important in the current inflationary environment. This gives us a high degree of confidence in our full year target of $80 million and we are on track for our long-term goal of $250 million in savings through 2028.

Let us review our growth investments. We spent $262 million in CapEx in the third quarter. This includes production expansion and debottlenecking initiatives across several of our cement plants. These initiatives are focused in attractive markets like Texas, Alberta and Quebec, where we expect population and economic growth to drive customer demand for our solutions in the years to come.

Cement or expansions in Mantis, Cancer City, Cincinnati, Columbus and Labor Texas represent further growth projects that will continue to strengthen our distribution network in attractive growth markets. Our teams continue to execute 6 major Agrate quarry expansions aimed at adding more than 150 million tons of reserves to support our growth. In Building Envelope, our team continues to make excellent progress on our new state-of-the-art Malachi Shing plant in Indiana. This will enable us to expand market share in the attractive Midwest and Eastern markets.

Looking at M&A, we are executing our strategy with a strong focus on synergies and growth markets. Our acquisition of PB Materials, the aggregates leader in West Texas is proving to be an excellent addition and is exceeding our initial expectations. This quarter, we closed the acquisition of Rapid Ready-mix a fast-growing concrete producer in Dallas-Fort Worth. Both acquisitions are EPS accretive this year and are delivering significant synergies with our aggregates operations and cement network in the region, complementing the planned expansion of our Midlothian cement plant.

These actions demonstrate how we align our M&A and CapEx investments to connect our network and capitalize on growth opportunities. We are continuing to deliver cash to shareholders with year-to-date capital return now standing at $1.1 billion. We completed our $1 billion share repurchase program on October 28, representing around 4% of share capital. We have now paid $364 million of dividends year-to-date, including the special dividend for 2025 and the first and second quarter dividends of $0.11 per share earlier this year.

Additionally, the MIC Board of Directors has declared a dividend of $0.11 per share for the third quarter to be paid on November 18. We Importantly, these dividends are paid out of capital contribution reserves and are not subject to Swiss affording tax.

I will now turn it to Sam to review our quarterly financial results in more detail and later discuss our full year guidance.

Samuel Poletti

Thank you, Jan. Turning to our results for the third quarter. We delivered a resilient year-over-year revenue growth of 2.2%. And as accelerating pricing traction in both segments complemented positive contributions from completed M&A. This reflects the insulated position of our inland markets, accelerating aggregates pricing and contributions from our premium cement product offerings, which taken together, should continue to drive above-market pricing growth through the cycle.

We have also successfully passed energy, fuel and freight surcharges across both segments to offset increasing cost of production, which are continuing to flow through on a lag basis. In total, price accounted for $78 million tailwind in the quarter, which excludes additional contributions from surcharges across the majority of our business lines. These surcharges added a further $23 million to our year-over-year revenue change in the quarter.

Volume performance in the quarter was mixed, with unfavorable pressure from weather, particularly in the Northeast, South and Central regions. These volumes, pressures were most pronounced in our cement and aggregates business lines. Commercial roofing volumes remained strong. while residential roofing volumes remained under pressure from lower stone-related reroofing demand. Altogether, volumes represented $69 million headwind in the quarter.

Our acquisitions continue to outperform our expectations with PV materials and rapid Ready-mix contributing a total of $77 million in revenue for the quarter. Now to review our adjusted EBITDA performance. In the third quarter, adjusted EBITDA was slightly up year-over-year to $1.1 billion. Pricing actions and M&A drove the entirety of our resilient year-over-year improvement with partial offsets from lower volumes and continued inflationary impacts from freight, diesel and raw materials.

Our ASPIRE spire savings continue to mitigate the magnitude of these cost items, contributing to a positive price over cost position at the consolidated company level. We continue to take pricing actions and surcharges across all parts of our business to address the persistent inflation in U.S. freight rates, direct diesel expense and raw material expense in both segments.

Turning now to our results by segments. For Building Materials, revenue grew 1.8% year-over-year to $2.8 billion. By product, Cement pricing saw year-over-year growth of 1.8%, a positive inflection versus the 0.2% year-over-year decline reported last quarter. Year-over-year improvement was broad-based across markets and continues to reflect the benefits of our market-leading cement foot trends.

We also saw strong aggregates pricing growth of 6.9% and which represents an acceleration versus pricing growth of 4% last quarter. Similar to cement, growth in the quarter was broad-based and supported across our geographic footprint. Cement volumes fell 4.2% year-over-year. As previously mentioned, volumes saw unfavorable impact from weather patterns in several of our key regions in the quarter.

Aggregates volumes were down 0.2% year-over-year. Similar to our cement footprint, headwinds from weather were offset by benefits from acquisitions and steady demand from multiyear infrastructure projects. Building Materials adjusted EBITDA increased 2.7% year-over-year to $938 million. This year-over-year improvement was led by strong pricing and positive contributions from acquisitions, partially offset by ongoing headwinds from higher freight and diesel costs. our ASPIRE savings helped to partially mitigate headwinds from these costs.

As mentioned, we continue to implement surcharges across both cement and aggregates which, over time, should more fully offset the inflationary impact of oil and energy seen year-to-date.

Turning to Building Envelope. Revenues grew 3.6% year-over-year to $929 million. driven by stronger volumes in commercial roofing and positive pricing traction across both commercial and residential roofing. We continue to see success from our system focused sales strategy. combined with positive contributions from large-scale projects, including data centers, warehousing and education. Overall, commercial roofing demand remains resilient.

Turning to residential. Underlying market conditions faced ongoing headwinds from slower exiting home sales and a lack of significant storms. Affordability challenges continue to limit residential new construction. Building Envelope adjusted EBITDA was down 14.6% year-over-year. with tailwinds from stronger volumes, entirely offset by raw material inflation and higher freight.

Margins were unfavorably impacted by the ongoing delay between price realization and oil-driven inflation across our cost base. Importantly, at a segment level, pricing increased sequentially and inflected positive on a year-over-year basis. As previously announced actions continue to gain traction through the course of the quarter. Praveen fuel surcharges continue to ramp in Building Envelope segment as well. which are additive to the underlying pricing growth in the quarter.

We expect this trajectory of price improvement to continue through Q4 and into 27 which will help to drive the sequential improvement in our price over cost spread in Q4 versus Q3. We have a strong balance sheet and investment-grade credit ratings. As of September 30, 26, on a trailing 12-month basis, our net leverage ratio was 1.8x. We had approximately $299 million of cash and cash equivalents with $3.4 billion of total available liquidity.

This financial strength Coupled with our investment-grade balance sheet, gives us a significant liquidity to deploy capital for growth investments, acquisitions and return cash to shareholders. The strength of our balance sheet and resilience of our cash flow profile puts us in a favorable position for capital allocation. We will continue to maintain a balanced approach between organic growth investments M&A and cash return to shareholders.

I will now pass the call back to Jan to review our updated 2016 guidance.

Jan Jenisch

Thank you, Sam. In Building Materials, we expect cement pricing to be positive in the fourth quarter and to be flat to low single digit for the full year. We expect aggregates pricing at mid-single-digit growth for the full year. Elevated interest rates could drive softer volumes in our Building Materials segment in the fourth quarter.

We expect to be price over cost positive in building materials with price growth, energy, fuel and freight surcharges and our Aspire savings offsetting ongoing oil price-driven cost inflation. In Building Envelope, roofing markets remain mixed. With positive commercial volumes, offset by weather-related challenges in residential.

As a result of a lack of significant storms and ongoing affordability challenges we expect normal seasonal destocking patterns to weigh on fourth quarter shingle demand. This will likely pressure shipments at an industry level. We continue to see good traction with our pricing actions and surcharges in both commercial and residential and expect further improvements in the price over cost spread in the fourth quarter versus the third quarter.

However, the magnitude of year-over-year inflation has pushed our expectations for price over cost positivity into 2027. Our ASPIRE program remains on track to deliver $80 million in savings in 2026 with our teams focused on saving initiatives to address both underlying cost opportunities and efforts to mitigate cost inflation in both segments. As a reminder, there was a $36 million net insurance benefit in the fourth quarter last year that will not repeat this year.

As a result of these changes, we are updating our 2026 revenue and EBITDA guidance. We now expect revenues of $12.2 billion to $12.4 billion and EBITDA of $2.95 billion to $3.05 billion. These updated targets reflect ranges that we view as achievable under a variety of scenarios for the fourth quarter.

With that, I will pass the call back to the operator to begin the Q&A portion of the call.

Operator

[Operator Instructions] Our first question will come from Anthony Pettinari with Citi.

질의응답

Anthony Pettinari

Jan, you're obviously absorbing a lot of costs this year. And I'm just wondering, as we look to 27, can you talk about what kind of pricing actions you need to take in cement and aggs to recover those costs into the new year? And then just generally kind of your confidence in cost recovery and what seems like it could be a softer or at least a more volatile kind of demand environment?

Jan Jenisch

Yes. Thanks for the question. That's a big and important question. I think you've seen that the cost inflation has accelerated from Q2 into Q3. Now very hard to predict what's going to happen next year. I think we're going to revisit that in more detail. around the quarter 4. And fundamentally, we expect 2027 to a year of growth for us. Pricing momentum should continue. And then we have to see how the global situation evolves if that inflation will stay on that level or if you get some relief here.

Operator

Your next question comes from Trey Grooms with Stephens.

Ethan Roberts

This is Ethan on for Trey. I just wanted to clarify a few of the moving pieces around price/cost. So price cost and building materials is expected to exit the year in positive territory. But in building envelope, it sounds like as you ship on these roofing systems priced at legacy ASP that that's being pushed in 2027.

So one, we started to hear some conversation about perhaps some degree of a broadening of cost inflation outside of just freight and energy costs. So to what degree are you seeing this? And then two, on the building, but envelope price/cost piece, I know you mentioned that it would be positive in 2027, but is there any more color you can give on when exactly most likely just seasonally not a 1Q event, but any more color on high-level timing there would be great.

Jan Jenisch

Good question. I think, first of all, I I'm very proud of the team to execute this margin expansion of 30 basis points in Building Materials. And that was a tough challenge for us. You see our pricing cement up 1.8% in the third quarter. Aggregates up 6.9% in the third quarter.

And then you saw we reported another an extra $23 million of surcharges for energy, transportation and diesel, where a large part is also for building materials. So the teams have really executed very well in this high inflation environment, I'm very proud of that. we believe this will continue. We will carry that with pricing into the fourth quarter. And I think we're going to see satisfactory results or expect to be price over cost positive also or building materials. So a really great job done from the team.

I would say for Building Envelope, the challenge was maybe even it was a bit steep, I think, first of all, from -- you mentioned it, the cost inflation went beyond transportation or diesel only. We also have the petrochemical-based raw materials, which were inflated in Q3. So that was obviously a burden for our residential and commercial roofing products. So that was a bit steeper on the inflation side.

And then maybe second, the market, especially the soft environment for changes for residential roofing didn't help with the pricing. Nevertheless, the teams did also a good job here. We increased prices in both product lines or business lines, so in residential and in commercial roofing, which makes us confident for the future.

We have then also the surcharges are working well here, especially for transportation. As you mentioned, logistics is up significantly in Q3. So this is good. So now how is this turn where I'm confident our pricing is going well. So that is doing well. So the one thing not in our control is the inflationary environment. So we have that in the question before. We have to see now how this phases out. You saw the crude oil prices really stand at the moment.

So we have to really see how this plays out beginning of the year. But I'm confident that we do everything under our control to reach the target of priceable cost positive, but I cannot control the inflationary environment.

Operator

Your next question comes from Bryan Blair with Oppenheimer.

Bryan Blair

I also want to focus on building material -- building envelop price costs. Are you willing to quantify the dollar or margin impact in Q3? And then what's contemplated in Q4 guidance ahead of the transition to targeted parity or better looking at 2027.

Jan Jenisch

Yes. I cannot share that data with you. We obviously have our scenarios what can happen in Q4 and then also importantly, into the next year 2027. We know that the building envelope side or especially the commercial and the residential roofing has been on a bit of a roller coaster, right?

We started that we had last year, a very slow quarter 4. So the comparison base is actually on a low bar for Q4. At the same time, that volume decline led to pricing challenges beginning of the year. And then in Q2, we entered into this very strong inflation. So the building envelope side is challenged. At the same time, we had basically no weather impact like you normally would see.

So the reroofing and residential was largely disturbed the same rate increases for interest rates don't help. So we have a couple of things challenging at the moment. But again, I think we do the right thing on pricing on cost mitigation and on surcharges. And now we have to see how the inflation will play out in Q4 and then also for next year.

Operator

Your next question comes from Cedar Ekblom with Morgan Stanley.

Cedar Ekblom

My question relates to the Building Materials business. So in the third quarter, we had a positive price over cost delivery, which is, I think, very encouraging, especially in an environment where volumes were negative. If I'm thinking about the fourth quarter guidance, though, the sort of implication at the midpoint for the year-on-year trend, do I need to think about a negative price over cost in building materials in the fourth quarter?

Or is the price over cost challenge really centered around the building envelope business. So I'm just trying to understand about the sequential price over cost development and how we should think about that in the fourth quarter for materials specifically.

Jan Jenisch

Yes. Cedar, I already talked a bit about this. I think I'm very confident for building materials. We really made it -- I would say, our teams made an excellent job in on the pricing, on the surcharges, on cost mitigation and I think this will stay in quarter 4.

I think we have somewhere in the documentation, we also guide for positive price over cost for the fourth quarter, and this is what I'm expecting.

Operator

Your next question comes from [ Garrett Greenblatt ] with JPMorgan.

Unknown Analyst

As we think about the M&A environment going forward given the recent rating across the space and some larger acquisitions across your peers. How are you thinking about the opportunity and the health of the pipeline in -- should we continue to see acquisitions more bolt-on in Construction Materials? Or could we see something larger and more transformative across your portfolio?

Jan Jenisch

Great question. Look, I think we have a track record of successful M&A, and you can expect that from us also going into the future. I'd like to mention that we have 2 fantastic acquisitions this year already, PB materials, the leader, aggregates leader for West Texas. This was a fantastic deal. We have a great team in West Texas.

The market is really booming there with all the -- not only oil and gas, but all the projects they have for data centers energy projects. So we really are even on a good timing, but the company is just great. And we are above expectations for sales and EBITDA, and materials will be a fully earnings accretive already this year. Similar fantastic deals with Rapid Ready Mix.

We just closed on the last day of July, in Dallas, Fort Worth fantastic ready-mix company with huge growth and a great team also there. Also here, we expect to close the year above expectations and also this acquisition will be value accretive. So while these 2 deals might not qualify $1 billion deal. They are very important to us. They are adding more than 2% in sales and EBITDA in earnings growth and this is very important for our growth model.

Our pipeline is, I would say, we have a very solid pipeline of future M&A, and we're working on it on a daily basis. And I hope we can report more action here in the months to come.

Operator

Our next question comes from David McGregor with [ Lombo ] Research.

Unknown Analyst

Can you hear me?

Jan Jenisch

Yes, we can hear you.

Unknown Analyst

Okay. Wonderful. I'm sorry about the technology. Well, congratulations on the strong pricing performance in the quarter in Building Materials, 7% lift in ags, 2% in cement is pretty impressive in this market. I guess I would like to ask you what you learned from the midyear pricing this year and about what is maybe changing in the demand environment for eggs and cement?

And how does that guide your thinking you should develop your beginning of your ask?

Jan Jenisch

That's a good question. Look, first of all, I'm happy you remember when we talked about Q1 and we talk about aggregates, I think in Q1, we were only at plus 1% in pricing, if I recall correctly. And then we shared that we have the price increase planned for April, and that was true.

So we then sequentially or year-over-year, we had a 4% aggregate pricing increase for Q2, so fantastic. We followed through, there's a few selected pricing things, but basically really executed the April price increase very well. And now in Q3, we are up 6.9% agree pricing. Very proud of the team. We had many questions in the past, are you not putting pricing in aggregate to something. I always share we have 1 of the best in quarries and aggregates and quality.

And then our teams will show that. And so I'm really proud to do that. In addition, A lot of surcharges, I shared before, we had $23 million just in Q3 in surcharges alone, which was not part of the price. So very happy with this. So what did I learn? I'd tell you, we had a very strong focus on the pricing this year. This is something we talk with the teams where we follow up on it really on a weekly basis. and that helped a lot.

We're sharing with the teams, different experiences and so on. So that really helps. And I'm, again, I'm proud of what the team delivered selling is similar a bit, right? We promised we were down in pricing in Q1 and then we did the April price increase and teams executed this really well, and now we are standing at 1.8% increase for the third quarter.

So well executed. That was maybe a bit more challenging as we have maybe other market participants with softer pricing or something, but we didn't compromise and the teams were really committed to show such a pricing. So very happy. We're very happy.

Operator

[Operator Instructions] Our next question comes from Julian Radlinger with UBS.

Julian Radlinger

Can you hear me?

Jan Jenisch

Yes, Julian. Go ahead.

Julian Radlinger

Great. Okay. So on building materials volumes. So you started the year feeling quite positive on commercial demand particularly thinking back 9, 12 months now. And you had a good H1, I think, a bit helped by comps, right? Now Q3 volumes were quite soft. It's a little bit weather affected. That's clear.

But what exactly changed here? Was it just weather and weaker resi or did commercial or infra also slow down? And from today's point of view, as you're looking to Q4 and then especially into 2027. I mean is it reasonable to assume that can be a growth year? Or are things trending a little bit more flattish at the moment? Any color would be super interesting.

Jan Jenisch

Julian, thanks for the question. Look, I think we did -- on the volume side, we had a good quarter in commercial roofing. You want to point to this. We also see very continued demand for commercial roofing going into Q4 and then also for next year and really driven by, I think, icing on the cake is the by data centers, but also we have a long pipeline of projects here to be roof.

So this is going very well. I think on the chin side, we maybe we don't -- I think we don't show that number, but that was a softer Q3, and there was no storm season this time or something. So we have this and double effect of less demand and then some destocking in the distribution channel. So the Shields had a tough quarter.

Now we expect this should normalize in the future. I think I don't see that those volumes will stay that low for next year, especially, and we will get to a more normalized season. So I think -- does that answer your question, Julian?

Julian Radlinger

Excuse me. Sorry, sort of. I was actually asking for material, it's not for envelope, sorry.

Jan Jenisch

Okay. For materials, I think there's nothing to really worry about that we had actually billing materials has started to grow middle of last year. We talked about this in previous sessions that building materials with the more projects start in commercial and the strong infrastructure demand, we had a growth basically every quarter since then. So the comp is maybe a little bit more challenging for us at the moment. Had quite some weather effect, especially in Texas and some other regions.

I don't want to use this really as an excuse, but that certainly took down the volumes quite significantly in those areas. And we have -- I don't -- I'm quite confident for the volumes now going into Q4 and going into next year. After the one thing, I think we also shared with you in the docs is you have to see now the recent interest rate increases, how this will play out in midterm how this will play out. But nothing in my control.

I think we are doing what we always have been doing. We're focusing on acquiring those large projects and supplying our products.

Operator

Our next question comes from Martin Hüsler with ZKB.

Martin Huesler

I hope you can hear me.

Jan Jenisch

Yes, Martin.

Martin Huesler

Okay. So my question is about the free cash flow conversion. Obviously, you have returns target of 50%. And obviously, we can see that the CapEx is a bit higher for this year. But maybe maybe your thoughts on what you can expect for for the last quarter, I mean what range we might end up.

Jan Jenisch

Thank you, Martin, for the question. I pass this over to our CFO, Sam.

Samuel Poletti

Martin, happy to address that. I think from an overall perspective, we're very happy with where cash flow goes, obviously, have a seasonal business, which you know, so we're always getting the majority of the cash flowing towards the end of the year. This is particularly related to our maintenance programs, which we're doing in the low season.

So I'm very confident where we see that. We always have a good collection throughout the fourth quarter. So I would still expect that we are a bit lower on cash conversion, it's not at the 50% level, that's going to be a bit down because we are investing more into our business and we see that fruit than coming into fruition basically then into the next quarters and particularly next year.

Operator

Last question comes from Yassine Touahri with On Field Investment Research.

Yassine Touahri

I think your reporting suggests that you imported a bit more than 2 million tonnes of cement last year or around 10% of your volume. And I remember you mentioned that last summer that we intend to reduce import to just a few hundred thousand tons. Could you give us an indication of your import run rate this year and your expectation for next year?

And also on import, do you think that cement producer might take a more measured approach to pricing in coastal markets to discourage importers for expanding in a context where or even maybe push some out of the market in a context where they will probably see some significant pressure from a higher freight rate?

Jan Jenisch

No, look, our strategy is not to import cement. I mean we have, as Amrize a specific strategy to strengthen all our domestic supply chains we see as we are a local partner with local supply chains. And you see in our CapEx, we are increasing our flagship plans, the capacity and the efficiency here going into the future. We just finalized the big investment in [ Syngin, ] the largest single cement plant in North America.

We have other projects now in Canada in Texas to increase capacity and efficiency. This is our future. We have almost no cement imports this year because that's not our strategy. You see also our vision for the company. We are certifying now all our cement plans made in America Canadian ones as product of Canada. These are official logos from the government.

We are able to obtain and this is our strategy, local for local supply chains, and we don't believe that import strategy is necessarily sustainable or has sufficient returns. So you will see that from us. I think we demonstrated now people talk about imports, well, we increased the price, we increased the margins.

And I think you can expect more of that from us in the future, especially on the efficiency side, we believe we have a lot of leverage here going into the future as we have covered quite some -- had to cover quite some cost increase over the last couple of years. So very confident but precisely to your question, basically not in order this on cement.

Operator

We have no further questions at this time. I will now turn the call back over to Jan Jenisch for closing remarks.

Jan Jenisch

Yes. Thank you very much for joining us today for the third quarter, and I very much look forward to engage with you in the future, especially for our fourth quarter report coming up in February. Thank you very much.

Operator

This concludes the Amrize Q3 2026 Earnings Conference Call. You may now disconnect.