Holcim's Strategic Spin-off of Amrize: A New Era for North American Growth and Shareholder Value

In June 2025, Holcim executed a landmark strategic shift by spinning off its North American business into a standalone entity, Amrize. This move, finalized on June 23, 2025, through a 100% dividend-in-kind distribution of Amrize shares to Holcim shareholders, marks a pivotal moment in the company's evolution. By separating its North American operations, Holcim has reallocated capital and focus to its core markets in Europe, Latin America, Australia, and North Africa, while Amrize is now free to harness the robust demand for construction materials in the U.S. and Canada.

Competitive Positioning: Amrize's Tailwind-Driven Growth

Amrize, now a publicly traded company under the ticker AMRZ, operates in a market primed for expansion. North America's construction sector is being fueled by infrastructure spending, housing demand, and the U.S. reshoring of manufacturing. With over 1,000 sites and a distribution network spanning every U.S. state and Canadian province, Amrize is uniquely positioned to capitalize on these trends. The company reported $11.7 billion in revenue in 2024 and aims to grow at a compound annual growth rate (CAGR) of 5–8% in revenue and 8–11% in adjusted EBITDA through 2028.

The spin-off also enables Amrize to pursue tailored strategies, such as expanding its high-value Building Solutions (e.g., energy-efficient materials and modular construction systems) and targeting infrastructure projects under the Biden administration's $1.2 trillion infrastructure bill. Analysts estimate the North American construction market to exceed $2 trillion annually, providing ample runway for Amrize to scale.

Capital Allocation: Holcim's Focus on Global Megatrends

Post-spin-off, Holcim has redirected its capital allocation toward markets where it can leverage its sustainability leadership and high-margin Building Solutions. The company's NextGen Growth 2030 strategy emphasizes value-accretive M&A, organic growth in decarbonization, and expanding its footprint in Latin America and Europe. With a post-spin-off capital deployment capacity of CHF 18–22 billion from 2025 to 2030, Holcim is prioritizing acquisitions in regions with strong infrastructure pipelines and regulatory tailwinds for green construction.

For example, in 2025, Holcim completed 11 value-accretive acquisitions in Europe and Latin America, including operations in Serbia, Bulgaria, and Argentina. These moves align with its goal to produce 8 million tons of near-zero carbon cement annually by 2030 and reduce Scope 1 emissions by 30% compared to 2020 levels. By shedding the North American business, Holcim can now accelerate its pivot to sustainable construction, a sector projected to grow at 6–8% annually through 2030.

Shareholder Value: A Dual-Track Play on Growth

The spin-off is expected to unlock significant value for both Holcim and Amrize. For Amrize, the separation allows it to trade at a premium to Holcim's previous multiple for its North American operations. Analysts project Amrize's EV/EBITDA multiple to rise to 10x–13x by 2026, driven by its focus on high-margin Building Envelope solutions and infrastructure contracts. For Holcim, the move sharpens its strategic clarity, enabling it to deliver 3–5% annual net sales growth and 6–10% recurring EBIT growth under its 2030 targets.

Investors should also note Amrize's disciplined financial strategy: it aims to achieve an investment-grade credit rating with a net leverage ratio below 1.5x and maintain a cash conversion rate of over 50%. This fiscal prudence, combined with its $3.4 billion bond offering prior to the spin-off, positions Amrize to fund growth without overleveraging.

Risks and Considerations

While the spin-off is a strategic win, investors must monitor macroeconomic headwinds, such as rising interest rates and potential regulatory changes in the U.S. construction sector. Additionally, Amrize's reliance on infrastructure spending could face delays if political priorities shift. However, its diversified customer base (including residential, commercial, and public projects) mitigates this risk.

Investment Thesis: A Win-Win for Shareholders

For long-term investors, both Holcim and Amrize present compelling cases. Amrize offers exposure to North America's infrastructure boom and a strong balance sheet, while Holcim benefits from its focus on decarbonization and high-margin Building Solutions in Europe and Latin America. Given the current valuation gap between Amrize and its peers (e.g., LafargeHolcim and Cementos Argentinos), the stock may see a re-rating as it gains institutional attention.

In conclusion, Holcim's spin-off of Amrize is a masterstroke in capital reallocation and strategic focus. For investors seeking growth in a sector aligned with global infrastructure and sustainability megatrends, both companies offer distinct, yet complementary, opportunities. The key is to assess which entity's growth trajectory aligns best with your risk tolerance and time horizon.

Final Note: As the U.S. reshoring trend gains momentum and global demand for sustainable construction solutions intensifies, the Holcim-Amrize split may serve as a blueprint for how industrial companies can unlock value through strategic separation. Investors who act early on this dual-track play could reap substantial rewards in the coming years.