Amrize Q3 2026 Earnings: Revenue Rises but EBITDA Margin Narrows

Amrize (NYSE: AMRZ) reported Q3 2026 revenue of $3.771 billion, up 2.2% from $3.690 billion, while diluted EPS increased 4.1% to $1.02 from $0.98. Pricing, recent acquisitions, and surcharges supported growth, but higher freight, diesel, and raw-material costs limited adjusted EBITDA growth to 0.2% and reduced its margin by 60 basis points. The pressure was concentrated in Building Envelope, while Building Materials expanded its segment margin.

Core Financial Results

For the quarter ended September 30, revenue benefited from $78 million of price increases, $77 million of acquisition contributions, and $23 million of energy, fuel, and freight surcharges. Lower volumes and unfavorable effects from foreign exchange and other revenue partially offset those gains.

GAAP net income and diluted EPS increased, but adjusted diluted EPS was unchanged. Adjusted EBITDA was nearly flat because pricing, surcharges, and acquisitions were offset by cost inflation and lower volumes.

Adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted EPS are non-GAAP measures. Net income, net income margin, and diluted EPS are reported under GAAP.

Business and Segment Performance

Amrize’s two segments moved in different directions. Building Materials produced higher adjusted EBITDA and modest margin expansion, while Building Envelope’s revenue growth did not translate into higher earnings because freight and raw-material costs increased.

In Building Materials, cement volume declined 4.2% to 6.8 million tons and aggregates volume fell 0.2% to 40.1 million tons. Amrize attributed the weakness to weather in the Northeast, South, and Central regions, partly offset by steady state and federally funded multiyear projects.

Pricing helped counter the volume pressure. On a constant-currency basis, cement prices increased 1.8% and aggregates prices rose 6.9%. Acquisitions and surcharges also contributed, allowing the segment to expand its margin despite higher freight and diesel costs.

Building Envelope benefited from higher volumes and pricing. Commercial roofing demand was supported by expanded system sales, large-scale data centers, industrial projects, and resilient commercial re-roofing activity. Shingle volumes were weaker because of limited major storm activity and sluggish existing-home sales. Higher freight and raw-material costs more than offset the benefits of volume, pricing, and surcharges.

At the consolidated level, lower unallocated corporate costs also provided support. These costs declined to $44 million from $52 million, helping adjusted EBITDA remain slightly positive despite the decline in Building Envelope earnings.

Margin Pressure, Cash Flow, and the Balance Sheet

The quarter’s main profitability issue was the divergence between revenue and adjusted EBITDA margin. Price increases and surcharges supported sales, but they did not fully offset cost inflation across the company, particularly in Building Envelope.

Cash flow figures were reported for the first nine months rather than Q3 alone. Operating cash flow declined to $222 million from $417 million, with Amrize citing working-capital changes and the comparison with spin-off-related balance settlements in the prior period. Free cash flow was a use of $551 million, compared with a use of $186 million, reflecting lower operating cash flow and higher capital spending on growth initiatives.

Amrize invested $262 million in net capital expenditures during Q3 and $773 million during the first nine months. As of September 30, gross debt was $5.848 billion and cash and cash equivalents were $299 million, resulting in net debt of $5.549 billion and a net leverage ratio of 1.8 times.

The company returned $1.1 billion to shareholders through buybacks and dividends during the first three quarters. That included $750 million of repurchases and $364 million of dividends. Amrize completed its $1 billion repurchase program on October 28 and declared a Q3 dividend of $0.11 per share.

FY 2026 Guidance

Amrize updated its FY 2026 guidance to reflect continuing cost inflation and elevated interest rates. The release did not provide the previous guidance ranges, so the size and direction of the revision cannot be quantified from the available information.

For Building Materials, Amrize continues to expect cement pricing to be flat to up low-single digits and aggregates pricing to increase by mid-single digits for the year. The company expects the segment to become price-cost positive in Q4, although elevated interest rates may affect volumes.

Building Envelope’s price-cost position is expected to improve sequentially in Q4, but the magnitude of inflation has delayed expected price-cost positivity until 2027. Commercial roofing volumes are expected to remain resilient, while residential roofing is expected to stay softer because of lower existing-home sales.

Amrize had achieved $73 million of ASPIRE savings through the first nine months and maintained its $80 million full-year target. The company also noted that $36 million of insurance proceeds recognized by Building Materials in Q4 2025 is not expected to recur.

Management View

Management said the PB Materials and Rapid Redi-Mix acquisitions were exceeding expectations and were expected to be accretive to EPS in 2026. Amrize completed the Rapid Redi-Mix acquisition in the Dallas–Fort Worth market during the quarter.

Chairman and CEO Jan Jenisch also identified data centers, energy projects, advanced manufacturing, and infrastructure as long-term construction demand drivers. In the near term, management’s response to inflation remains centered on pricing, surcharges, and savings from the ASPIRE program.

Recent Insider Transactions

The detailed transaction records supplied for Amrize show that its 10 most recent reported insider transactions were purchases made between August 11 and September 2, 2026. Their reported value totaled approximately $2.57 million, with nine direct purchases and one indirect purchase.

A separate six-month summary in the supplied Yahoo Finance data showed zero purchases, which conflicts with the detailed entries above. The original regulatory filings should therefore be used to verify the transactions and reconcile the difference.

Risks Investors Need to Watch

• Building Envelope cost pressure: Higher freight and raw-material costs drove a 410-basis-point segment margin decline. Amrize now expects this business to reach price-cost positivity in 2027 rather than during 2026.
• Interest rates and residential demand: Elevated rates may affect Building Materials volumes in Q4, while lower existing-home sales are already weighing on residential roofing and re-roofing activity.
• Weather-related volume volatility: Adverse weather reduced cement and aggregates volumes, while the lack of significant storms limited shingle demand.
• Cash conversion and debt: Nine-month operating cash flow declined, free cash flow remained negative, and net debt stood at $5.549 billion. FY 2026 net interest expense is expected to be approximately $340 million.
• A tougher Q4 comparison: Building Materials recognized $36 million of insurance proceeds in Q4 2025 that Amrize does not expect to repeat in 2026.

Summary

Amrize delivered modest revenue and GAAP earnings growth in Q3 2026, supported by pricing, acquisitions, and surcharges. Building Materials protected profitability despite lower volumes, but Building Envelope’s cost inflation caused a substantial margin decline and kept consolidated adjusted EBITDA nearly flat. The main items to monitor are Building Envelope’s price-cost improvement, the effect of interest rates and weather on Q4 volumes, and whether seasonal cash generation can improve the company’s year-to-date free cash flow.