Hold Rating for Amrize Due to Cyclical Nature

Amrize (NYSE:AMRZ) has a strong long-term story due to its scale, local market dominance, pricing power, and secular tailwinds like the IIJA and housing shortage. However, its cyclical nature may lead to near-term weakness. Despite this, the company's fundamental strengths and growth potential justify a hold rating.

Amrize (NYSE: AMRZ) has demonstrated a strong long-term story due to its scale, local market dominance, pricing power, and secular tailwinds such as the Infrastructure Investment and Jobs Act (IIJA) and the ongoing housing shortage. However, its cyclical nature may lead to near-term weakness. Despite this, the company's fundamental strengths and growth potential justify a hold rating.

Following the completion of its spin-off from Holcim Ltd. on June 23, 2025, Amrize has continued to trade on the NYSE and SIX Swiss exchange. Post-separation, Amrize has been included in the Swiss Performance Index (SPI®) and Swiss Leader Index (SLI®) [2]. The spin-off has allowed Holcim to focus on its Latin America, Europe, Asia Middle East & Africa, and Solutions & Products segments while advancing its leadership in innovative and sustainable building solutions.

Amrize, on the other hand, has emerged as the leading pure-play building solutions company in the North American region. Its valuation, based on a 2026e EV/EBITDA multiple of 10.0x for the Building Materials segment and 13.0x for the Building Envelope segment, reflects its relatively larger business size compared to its peers [2]. This valuation suggests that Amrize's long-term fundamentals remain intact, driven by higher growth prospects and topline-driven margin expansion.

However, the company's cyclical nature may lead to near-term weakness. The housing market's volatility and the cyclical nature of construction projects could impact Amrize's short-term performance. Nevertheless, the company's strong fundamentals and long-term growth potential justify a hold rating. Investors should monitor the company's performance closely, particularly its ability to capitalize on secular tailwinds and maintain its pricing power.

References:

[1] https://www.nasdaq.com/articles/fixs-ma-discipline-holds-firm-can-it-fuel-long-term-growth
[2] https://www.forbes.com/sites/joecornell/2025/07/08/holcim-completes-spin-off-of-amrize-on-june-23/