Amrize Q3 Revenue Rises 2.2% as Pricing Offsets Lower Volumes

Amrize Ltd. (NYSE: AMRZ) reported modest third-quarter growth as pricing and acquisitions offset weather-related volume weakness, while higher freight and raw-material costs weighed on its Building Envelope business. The company also set updated 2026 guidance for revenue of $12.2 billion to $12.4 billion and adjusted EBITDA of $2.95 billion to $3.05 billion.

Revenue for the quarter ended September 30 rose 2.2% year over year to $3.77 billion. Pricing contributed $78 million to the increase, surcharges added $23 million and acquisitions contributed $77 million, partly offset by a $69 million volume decline and a $28 million foreign-exchange and other impact.

Adjusted EBITDA edged up 0.2% to $1.08 billion, as pricing, surcharges and savings under Amrize’s ASPIRE program largely countered weaker volumes and $97 million of higher costs. The company said the cost pressure primarily reflected oil-price-driven inflation affecting freight, diesel and raw materials. Adjusted EBITDA margin narrowed to 28.5% from 29.1%.

Net income increased 3.3% to $558 million. Diluted earnings per share rose to $1.02 from $0.98, while adjusted diluted EPS was unchanged at $1.05. Prior-year comparisons reflect revisions that Amrize said were not material to its previously issued consolidated financial statements.

Building Materials offsets roofing pressure

Building Materials revenue increased 1.8% to $2.84 billion, supported by higher prices across its business lines and acquisition contributions. Segment adjusted EBITDA rose 2.7% to $938 million, and the adjusted EBITDA margin expanded by 30 basis points.

Constant-currency cement pricing, excluding trading, increased 1.8%, while product-based aggregates pricing excluding freight rose 6.9%. Amrize also implemented cement energy surcharges and fuel and freight surcharges across other business lines.

Volumes remained under pressure, however. Cement volume excluding trading fell 4.2%, and aggregates volume declined 0.2%, with adverse weather affecting the Northeast, South and Central regions. Steady state- and federally funded multiyear projects provided some support.

Building Envelope produced a more mixed result. Revenue grew 3.6% to $929 million as commercial roofing benefited from expanded system sales, large-scale data-center and industrial projects, and resilient reroofing demand. Pricing also improved from both the prior year and the preceding quarter as increases were phased in during the period.

Segment adjusted EBITDA nevertheless fell 14.6% to $182 million. Amrize attributed the decline to higher freight and raw-material costs and lower shingle volumes, partly offset by pricing and fuel and freight surcharges. Shingle demand was hurt by the absence of significant storms and sluggish existing-home sales, which reduced reroofing activity.

Acquisitions and cost savings support growth plans

PB Materials and Rapid Redi-Mix contributed $77 million of third-quarter revenue. The acquisitions expanded Amrize’s presence in West Texas and the Dallas-Fort Worth market, and the company said they are expected to be accretive to adjusted EPS in 2026.

Amrize delivered $73 million of year-to-date savings through its ASPIRE program, including initiatives covering raw materials, services, logistics and equipment. About 1,000 suppliers were onboarded during 2026. Management expects savings of approximately $80 million for the full year and remains on track for $250 million through 2028.

Capital expenditure totaled $262 million in the third quarter, and the company expects about $900 million for 2026. Projects include cement-plant investments in Texas, Alberta and Quebec; six quarry expansions expected to add more than 150 million tons of reserves; cement-terminal expansions in several U.S. markets; and a shingle plant in Indiana.

Amrize returned $1.11 billion to shareholders during the first nine months of 2026, including $750 million of share repurchases and $364 million of dividends. The company completed its $1 billion repurchase program on October 28. A third-quarter dividend of $0.11 per share is scheduled for payment on November 18.

At September 30, Amrize had $299 million in cash and cash equivalents and $3.4 billion of available liquidity. Its net leverage ratio was 1.8 times, with a weighted-average debt maturity of 6.2 years and a weighted-average interest rate of 5.1%.

Mixed fourth-quarter outlook

For Building Materials, management expects fourth-quarter cement pricing to be flat to up by a low-single-digit percentage and aggregates pricing to rise by a mid-single-digit percentage, excluding specified surcharges and freight. Elevated interest rates could result in softer volumes, while continued pricing actions and energy, fuel and freight surcharges are expected to produce positive price-cost performance, excluding a $36 million net insurance benefit recorded in the fourth quarter of 2025.

The Building Envelope outlook remains mixed. Amrize expects resilient commercial roofing volumes to be offset by weather-related challenges and sluggish existing-home sales in residential markets. Normal seasonal destocking is also expected to weigh on fourth-quarter shingle demand. The company expects fourth-quarter price-cost performance in the segment to improve from the third quarter as it continues pricing and surcharge actions.

Management pointed to multiyear data-center, energy and infrastructure projects as medium- to long-term opportunities, including spending supported by the Infrastructure Investment and Jobs Act. In the near term, however, elevated interest rates, housing affordability constraints, weather conditions and weak existing-home sales may continue to affect volumes.

Other risks identified by Amrize include construction-industry cyclicality, raw-material availability and costs, energy and fuel inflation, competition, acquisition-synergy execution, litigation and regulation, and the company’s ability to meet margin-expansion goals. Amrize also cited risks associated with its separation from Holcim, including separation costs, its limited history as an independent public company and potential changes in commercial terms and indemnification obligations.