Amrize Posts Lower H1 Revenue, Earnings Decline

Amrize has reported lower H1 net income and revenue. The company's Q2 earnings and revenue declined, with revenue at $3.22B, missing FactSet's estimate of $3.39B. Amrize has also partnered with Meta on an AI-optimized advanced concrete mix for a Minnesota data center. Various brokerages have initiated coverage on Amrize, with ratings ranging from Neutral to Buy.

Amrize Inc. (AMRZ), a leading provider of building materials and construction solutions, reported its second-quarter 2025 financial results, revealing mixed performance compared to the previous year. The company's revenue for the quarter stood at $3.22 billion, a slight decrease of 0.7% compared to the same period last year. Net income declined to $428 million, representing a 9.5% decrease from the prior year.

The company's results were influenced by several factors, including challenging market conditions and inclement weather during the quarter. Public sector spending provided steady infrastructure demand, while commercial customers continued executing on larger projects. However, market uncertainty and higher interest rates limited the timing of new construction starts and existing home sales. Despite these challenges, Amrize maintained strong margins and operational performance.

Amrize's Building Materials segment reported revenues of $2,250 million, a 1.1% decrease from the prior year. Adjusted EBITDA for the segment was $758 million, a 1.6% decrease from the previous year. The company's Building Envelope segment saw revenues of $970 million, with a 0.1% increase from the prior year. Adjusted EBITDA for this segment was $261 million, a 0.8% decrease from the previous year.

To drive growth and improve margins, Amrize has launched the ASPIRE program, aimed at accelerating synergies and profitable growth. The program targets more than $250 million in synergies through 2028, with incremental savings expected to begin in the second half of 2025. Additionally, the company continued investing in growth through CapEx and value accretive M&A, including the acquisition of Langley Concrete Group, Inc., and the opening of a greenfield quarry in Oklahoma.

Amrize's strong balance sheet and capital structure have been further bolstered by successful debt issuance. The company secured $5.3 billion of senior notes and $930 million of short-term borrowings under its $2 billion commercial paper program, resulting in a gross debt balance of $6.2 billion and a net debt balance of $5.6 billion. S&P Global Ratings and Moody's Ratings have assigned investment-grade ratings of BBB+ and Baa1, respectively, with a stable outlook.

Amrize has also partnered with Meta to develop an AI-optimized advanced concrete mix for a Minnesota data center. Various brokerages have initiated coverage on Amrize, with ratings ranging from Neutral to Buy, reflecting the company's potential for long-term growth.

Amrize's 2025 financial targets include revenues of $11.4 billion to $11.8 billion, adjusted EBITDA of $2.9 billion to $3.1 billion, and a net leverage ratio of under 1.5x by the end of the year.

References:
[1] https://www.businesswire.com/news/home/20250806709873/en/Amrize-Delivers-Solid-Second-Quarter-Starts-Journey-in-Position-of-Strength