Amrize Q2 2026 Earnings: Revenue Grows 8.6% but EBITDA Margin Contracts

Amrize (NYSE: AMRZ) reported Q2 2026 revenue of $3.494 billion, up 8.6% year over year, while diluted EPS increased 14.7% to $0.86 from $0.75. Net income grew faster than revenue, but adjusted EBITDA margin declined as higher freight, diesel and raw-material costs offset part of the benefit from volume growth, pricing and cost savings.

Core earnings data

Revenue increased by $276 million year over year. Amrize attributed the gain primarily to $200 million from higher volumes, $54 million from Building Materials acquisitions, $16 million from aggregates pricing and a $6 million favorable foreign-exchange impact. Organic growth was 6.7%.

Adjusted EBITDA rose at a slower rate than revenue, resulting in an 80-basis-point margin decline. Net income margin nevertheless improved by 70 basis points, while unallocated corporate costs decreased to $44 million from $72 million.

Adjusted diluted EPS, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Prior-year figures include revisions that Amrize said were not material to previously issued financial statements.

Business and segment performance

Both segments generated revenue growth, but their earnings trends diverged. Building Materials increased adjusted EBITDA, while Building Envelope reported lower adjusted EBITDA and substantially narrower margins because freight and raw-material costs rose faster than pricing.

Building Materials benefited from higher volumes, acquisitions, aggregates pricing and ASPIRE savings. Cement volumes increased 5.0%, while aggregates volumes rose 6.5%. Cement pricing declined 0.2% on a constant-currency basis but improved 2.1% sequentially, while freight-adjusted aggregates pricing increased 4.0% in constant currency.

Building Envelope revenue growth came primarily from commercial roofing projects, including data centers and warehouses, as well as residential roofing. These gains were partly offset by softer weatherproofing and insulation demand. Residential roofing also benefited from distributor inventory stocking.

Cost inflation kept revenue growth from producing margin expansion

The central issue in the quarter was the gap between revenue and adjusted EBITDA growth. Consolidated revenue rose 8.6%, but adjusted EBITDA increased only 5.8%, as oil-related inflation raised freight, diesel and raw-material costs. Lower prior-year insurance proceeds also affected the comparison in Building Materials.

The pressure was most visible in Building Envelope, where revenue rose 9.4% but adjusted EBITDA fell 5.2%. Amrize said price increases were phased in during the quarter, with further increases implemented in July and planned for August at selected brands. Management expects Building Envelope’s price-cost relationship to improve in the second half, but the timing gap between cost inflation and price realization remains an earnings headwind.

Cash flow, debt and capital allocation

Cash flow figures were provided for the first six months rather than Q2 alone. Net cash used in operating activities was $475 million in the first half of 2026, compared with $441 million used a year earlier. Higher accounts receivable and the settlement of amounts due to related parties more than offset the benefit from higher net income and non-cash expenses.

First-half free cash flow was a use of $986 million, compared with a use of $860 million in the prior-year period. Amrize attributed the deterioration mainly to higher capital spending for growth initiatives and noted that it historically generates most of its cash flow in the second half. Net capital expenditures were $241 million in Q2 and $511 million in the first half.

At June 30, 2026, gross debt was $6.004 billion and cash and cash equivalents totaled $729 million, producing net debt of $5.275 billion and a net leverage ratio of 1.7 times. During Q2, Amrize returned $502 million to shareholders through $197 million of share repurchases and $305 million of dividends.

Full-year guidance

Amrize raised its 2026 revenue outlook to reflect stronger demand and revised its adjusted EBITDA outlook to account for oil-price-driven cost inflation. The company expects cement and aggregates volumes to grow, while residential roofing volume is now expected to increase at a high-single-digit rate.

Amrize expects cement pricing to be flat to up low single digits and freight-adjusted aggregates pricing to rise by mid-single digits. It continues to project low-single-digit commercial roofing volume growth and expects additional pricing and ASPIRE savings in the second half. Adjusted EBITDA guidance is a non-GAAP measure.

Risks investors should monitor

• Oil-linked cost inflation: Higher freight, diesel and raw-material costs already reduced adjusted EBITDA margins and are reflected in the revised earnings outlook.
• Timing of price increases: Building Envelope’s recovery depends partly on price increases catching up with input costs during the second half.
• Second-half cash generation: Free cash flow was negative in the first half because of working-capital requirements and higher capital spending, increasing reliance on the company’s historically stronger second-half cash conversion.
• Execution of savings and volume assumptions: Full-year guidance incorporates $80 million of ASPIRE savings, continued volume growth and additional pricing realization.
• Comparability of prior periods: Amrize revised several earlier financial statements after identifying misstatements, including an understatement of deferred revenue associated with extended warranties. The company concluded that these items were not material to previously issued statements.

Summary

Amrize’s Q2 revenue growth was supported by higher volumes, acquisitions and aggregates pricing, while lower corporate costs helped net income grow faster than sales. The main constraint was oil-related cost inflation, particularly in Building Envelope, which prevented revenue gains from translating into consolidated margin expansion. Investors’ next areas of focus are second-half pricing realization, delivery of ASPIRE savings and the seasonal recovery in free cash flow.