Pujarini Ghosh

Pujarini Ghosh asked for confirmation that Amrize's 2026 revenue and EBITDA guidance does not include future potential acquisitions beyond PB Materials, and requested color on the 2026 CapEx spend and the new capacity additions these projects will bring to the overall portfolio.

Answer

Ian Johnson, CFO, confirmed the 2026 guidance (4%-6% revenue, 8%-11% EBITDA) is organic, including PB Materials. Jan Jenisch, Chairman and CEO, added that the $900 million CapEx for 2026 represents a significant increase, more than doubling growth CapEx, focused on debottlenecking, expanding in new markets, and improving efficiencies at key cement plants.

Pujarini Ghosh asked for confirmation that Amrize's 2026 revenue and EBITDA growth guidance does not include any future potential acquisitions beyond PB Materials. She also requested color on the planned $900 million CapEx spend for 2026 and the new capacity additions this will bring to the overall portfolio.

Answer

CFO Ian Johnson confirmed that the 2026 guidance of 4%-6% revenue growth and 8%-11% EBITDA growth is organic, including the PB Materials acquisition. Chairman and CEO Jan Jenisch added that the confidence stems from accelerating customer demand, strong order books, and self-help initiatives like pricing and the Aspire program. He noted that growth CapEx is more than doubling, focusing on debottlenecking, expanding plants like Ste. Genevieve, and new facilities like the Malarkey Shingles plant.

Pujarini Ghosh asked a follow-up question regarding the sharp decline in Building Materials margin, even after adjusting for the one-off outage and higher land sales proceeds, inquiring about its causes and recovery expectations, as well as the price-cost dynamic in cement.

Answer

Ian Johnston, CFO, attributed the Building Materials margin decline primarily to the $50 million plant outage, the significant year-over-year variance in asset sales, lower cement pricing (-0.6%), and some cost inflation. He expects some production recovery in Q4 and confirmed that price-cost in cement was negative due to temporary cost increases in the Mountain region.

Pujarini Ghosh asked for clarification on the sharp decline in Building Materials margin, even after adjusting for one-off items, and the price-cost dynamics in cement.

Answer

Ian Johnston, CFO of Amrize, attributed the margin decline primarily to the $50 million plant outage, significant year-over-year variance in asset sales, lower cement pricing (-0.6%), and cost inflation. He expects some recovery in Q4 as outage issues are resolved and confirmed negative price-cost in cement due to temporary cost increases.

Pujarini Ghosh of AB Bernstein inquired about the pricing outlook for H2, the rationale behind the wide 6% to 10% EBIT growth guidance, and the actual price premium being realized for sustainable products.

Answer

CEO Miljan Gutovic stated that pricing is expected to be in the low to mid-single digits for the year, with no new increases planned for H2. He explained the guidance range reflects the company's ambition to always overachieve, aiming for over-proportional EBIT growth. Regarding premium products, he confirmed a modest price premium, but noted that the main benefit comes from lower production costs due to formulation know-how, which drives margin expansion, particularly in Europe.

Pujarini Ghosh of AB Bernstein inquired about the pricing outlook for H2, the rationale behind the wide 6-10% EBIT growth guidance, and the observed price premium for low-carbon products.

Answer

CEO Miljan Gutovic projected low to mid-single-digit pricing for the year, with the 6-10% EBIT guidance reflecting an ambition to overachieve. He confirmed a modest price premium on sustainable products, noting that cost reductions from production know-how are the primary driver of margin expansion.

Pujarini Ghosh of AB Bernstein inquired about the pricing outlook for H2, the rationale behind the wide 6-10% EBIT growth guidance, and the actual price premium being realized for sustainable products.

Answer

CEO Miljan Gutovic projected low-to-mid single-digit pricing for the full year and explained the guidance range reflects a commitment to over-proportional EBIT growth. He noted that for sustainable products, the key benefit is margin expansion driven by lower production costs due to formulation know-how, rather than just a modest price premium.

Pujarini Ghosh of Bernstein requested a breakdown of the 2% organic growth component of Q1's 4% local currency growth, specifically asking for the split between volume and price.

Answer

CEO Jes Hansen clarified that of the 2% organic growth, almost all of it was driven by volume, with only a small residual price effect from the previous year.

Asked about the future of inorganic capital expenditure given recent M&A activity and questioned the sustainability of margin expansion from price increases, suggesting cost decreases might eventually need to be passed on to customers.

Answer

The company remains primarily focused on organic growth, with acquisitions being infrequent. The current price increases are seen as firm and are sticking in the market, supporting the 16% margin guidance. The company believes a regular 'drumbeat' of price considerations is a healthy practice.