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Amrize Ltd (AMRZ)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue and cash flow ahead of plan; margin mixed. Q3 revenue rose 6.6% to $3.675B on stronger infrastructure and improving commercial end-markets; Free Cash Flow was $674M as working capital and lower cash taxes helped offset lower GAAP earnings .
  • Non-GAAP profitability solid but down y/y; outage weighed on Building Materials. Adjusted EBITDA was $1.067B (−3.3% y/y) as a six-week cement equipment outage added ~$50M of costs and Q3’24 had $39M higher asset sale gains; GAAP diluted EPS was $0.98 (−2% y/y) .
  • Guidance: revenue raised, profitability maintained. FY25 revenue guidance increased to $11.7–$12.0B (prior $11.4–$11.8B); Adjusted EBITDA $2.9–$3.1B and net leverage “under 1.5x” reaffirmed; CapEx ~$700M, D&A ~$850M, ETR 22–24% unchanged .
  • S&P Global consensus context: AMRZ delivered a revenue beat ($3.675B actual vs $3.476B* consensus) and a “Primary EPS” beat ($1.13* actual vs $1.00* consensus). Note: S&P “Primary EPS” differs from reported GAAP diluted EPS ($0.98) . Values retrieved from S&P Global*.

What Went Well and What Went Wrong

What Went Well

  • Strong top-line and FCF execution: “We delivered strong revenue growth of 6.6% and Free Cash Flow generation of $674 million, up $221 million” (CEO Jan Jenisch) .
  • Building Envelope margin expansion: Segment Adjusted EBITDA rose 9.0% to $217M with 190 bps margin expansion on operational efficiencies and lower raw material costs .
  • Aspire synergy program and growth pipeline: Management “onboarded 300+ new logistics and service providers” and launched “100+ projects,” with initial savings starting in Q4 and 50 bps margin expansion in 2026; demand underpinned by data centers and energy projects (25 data center projects underway) .

What Went Wrong

  • Temporary cement outage hit margins: A six-week equipment outage in the Mountain region raised manufacturing/distribution costs by ~$50M and reduced production; issue repaired and operations normal .
  • Cement pricing softness: Cement price/ton down 0.6% y/y in Q3; Building Materials EBITDA fell 4.2% y/y despite strong volumes and aggregates pricing .
  • Mixed y/y profit metrics: Adjusted EBITDA down 3.3% and net income down 1.6% y/y; net income margin declined 120 bps to 14.8% .

Financial Results

Consolidated quarterly snapshot

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$2.081 $3.220 $3.675
Net Income ($USD Millions)-$87 $428 $543
Diluted EPS ($)—$0.78 $0.98
Adjusted EBITDA ($USD Millions)$214 $947 $1,067
Adjusted EBITDA Margin %10.3% 29.4% 29.0%
Net Income Margin %-4.2% 13.3% 14.8%

Q3 year-over-year comparison

MetricQ3 2024Q3 2025Change
Revenue ($USD Billions)$3.446 $3.675 +6.6%
Net Income ($USD Millions)$552 $543 -1.6%
Adjusted EBITDA ($USD Millions)$1,103 $1,067 -3.3%
Net Income Margin %16.0% 14.8% -120 bps
Adjusted EBITDA Margin %32.0% 29.0% -300 bps

Segment breakdown (Q3 2025)

SegmentRevenue ($USD Millions)y/y %Adj. EBITDA ($USD Millions)y/y %Adj. EBITDA Margin %
Building Materials$2,774 +8.7% $902 -4.2% 32.5%
Building Envelope$901 +0.7% $217 +9.0% 24.1%

KPIs (Q3 2025 vs Q3 2024)

KPIQ3 2024Q3 2025y/y %
Cement – tons sold (millions)6.7 7.1 +6.0%
Cement – price per ton ($)$172.26 $171.25 -0.6%
Aggregates – tons sold (millions)38.9 40.2 +3.3%
Aggregates – price per ton ($)$15.43 $16.99 +10.1%
Aggregates – price/ton (freight adj) ($)$13.23 $13.95 +5.4%

Cash flow and balance sheet (Q3 2025)

  • Operating cash flow $854M; Free Cash Flow $674M; CapEx net $(180)M in Q3 .
  • Gross Debt $5.811B; Cash $0.826B; Net Debt $4.985B; Net Leverage 1.7x at Q3 end .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$11.4B–$11.8B $11.7B–$12.0B Raised
Adjusted EBITDAFY 2025$2.9B–$3.1B $2.9B–$3.1B Maintained
Net Leverage RatioYE 2025Under 1.5x Under 1.5x Maintained
CapExFY 2025~$700M ~$700M Maintained
Depreciation & AmortizationFY 2025~$850M ~$850M Maintained
Effective Tax RateFY 202522%–24% 22%–24% Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Current Period (Q3 2025)Trend
Infrastructure demand“Steady demand” from public spending despite uncertainty Continued strength; only ~50% of IIJA funding allocated to date (slide narrative) Stable/Supportive
Commercial (data centers/energy)Market uncertainty delayed smaller starts; strength in large projects and energy “Improving commercial demand,” 25 data center projects underway; Louisiana LNG/data center wins Improving
ResidentialSoft new construction; rates constrained demand New construction soft; milder storm season pressured reroofing Weak
Cement pricing+0.5% in Q2 -0.6% in Q3; mgmt expects better pricing in 2026 as demand improves Soft near-term; recovery expected 2026
Supply chain/operations—Temporary cement equipment outage added ~$50M costs; repaired; recover some production in Q4 Resolved
ASPIRE synergiesLaunched; $250M+ through 2028; 50 bps/yr target 300+ providers onboarded; 100+ projects; savings begin Q4; 50 bps expansion in 2026 Executing
Macro/tariffsRates weighed on demand Management notes uncertainties around tariffs and interest rates; cautious Q4 outlook Cautious

Management Commentary

  • Strategy and demand backdrop (CEO): “Together we delivered strong revenue growth of 6.6% ... Our Building Materials business had strong sales ... while margin was affected by a temporary equipment outage in our cement network. Within Building Envelope, operational efficiencies and lower raw material costs delivered margin expansion” .
  • Commercial pipeline: “Strong demand for data centers and energy projects… we won another data center project to supply 100,000 tons of cement… one of 25 data center projects we have underway in 2025” .
  • Outlook and guidance (CEO): “We are raising our 2025 revenue guidance, and we are confirming our EBITDA and net leverage ratio guidance” .
  • Segment drivers (CFO): Building Materials volumes strong; cement +6% volumes, aggregates +3.3% volumes; outage drove ~$50M higher costs; asset sale gains were lower vs prior year . Building Envelope margin up 190 bps on efficiencies and raw material tailwinds .

Q&A Highlights

  • Q4 puts/takes and tone: Management remains “cautiously optimistic” but maintained a conservative posture given tariff and interest rate uncertainties; outage issues resolved and expect “solid margins” going forward .
  • Cement pricing trajectory: Prices stabilizing in 2025 with confidence in 2026 improvement, supported by inland markets and capacity/efficiency projects (e.g., Saint-Constant fifth mill first production in November) .
  • Distribution/channel consolidation: No adverse impact seen from distributor consolidation; ~30% direct / 70% through distribution; focus remains on system innovation and end-customer value .
  • M&A and leverage: Healthy pipeline; willing to go “well above” current leverage for the right platform deal with a plan to delever subsequently .
  • Litigation/corporate costs: Several long-standing commercial litigation items settled; corporate costs trended better than guided due to staffing timing; will refine further .
  • D&A cadence: Some reduction expected in Q4 as certain equipment phases off .

Estimates Context

Metric (Q3 2025)S&P Global Consensus*ActualCommentary
Revenue$3.476B*$3.675B Beat on revenue; infrastructure and aggregates pricing drove growth. Values retrieved from S&P Global*.
Primary EPS$1.00*$1.13*Beat on S&P “Primary EPS.” Note: GAAP diluted EPS reported at $0.98 . Values retrieved from S&P Global*.

Note: S&P “Primary EPS” typically reflects normalized/adjusted EPS and can differ from GAAP diluted EPS reported by the company. Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Core demand remains resilient: Infrastructure steady and commercial improving (data centers, energy) support top-line momentum into Q4 despite residential softness .
  • Mix of positives/negatives in profitability: Building Envelope executing on efficiency and raw material tailwinds; Building Materials margins pressured by one-off outage and softer cement pricing, now resolved with production recovery expected in Q4 .
  • Guidance de-risked on profitability, raised on revenue: FY25 revenue bar moved up while EBITDA and leverage reaffirmed; implies confidence in volumes with cost normalization ahead .
  • Balance sheet firepower preserved: Net leverage at 1.7x in Q3 with path to sub-1.5x by YE; capacity for bolt-ons/platform deals remains intact .
  • Near-term catalysts: Execution on Aspire savings beginning in Q4, Ste. Genevieve capacity/efficiency ramp in Q4, and potential 2026 cement pricing improvement narrative .
  • Watch list into Q4: Cement pricing trajectory, any lingering distribution/logistics costs post-outage, residential roofing volumes if rate relief accelerates, and cadence of corporate costs vs prior guide .
  • Non-GAAP adjustments notable: Q3 adjusted EBITDA excludes items including $40M litigation-related costs, $10M spin-off costs, and $4M acquisition/integration; helps bridge GAAP to adjusted performance .