Amrize Q2 2025 slides reveal resilient performance and $250M synergy program

Introduction & Market Context

Amrize AG (NYSE:AMRZ) presented its Q2 2025 earnings results on August 7, 2025, marking its first quarterly report as an independent company following its successful spin-off and listing on the NYSE and SIX on June 23. The newly formed building materials and envelope solutions provider demonstrated resilient performance despite challenging market conditions, particularly in the residential and smaller commercial sectors.

The company’s shares have traded between $35.20 and $46.00 since its listing, with the stock currently trading at $38.36, up 1.07% in the most recent session.

Quarterly Performance Highlights

Amrize reported Q2 2025 revenues of $3.22 billion, representing a slight decrease of 0.7% compared to $3.24 billion in Q2 2024. Adjusted EBITDA came in at $947 million, down 5.6% from $1.00 billion in the same period last year, with an adjusted EBITDA margin of 29.4% compared to 30.9% in Q2 2024.

As shown in the following financial results chart, the company’s performance remained relatively stable despite market headwinds:

Management noted that Q2 2025 results included $42 million in standalone corporate costs that did not occur in 2024. Excluding these costs, adjusted EBITDA would have been $989 million with a margin of 30.7%, nearly matching the previous year’s performance.

The company’s revenue mix is diversified across three key sectors: Commercial (49%), Infrastructure (28%), and Residential (23%). This diversification has helped Amrize weather sector-specific challenges, with infrastructure spending providing stability while residential construction faced headwinds from higher interest rates.

Segment Performance

Amrize’s Building Materials segment, which includes cement, aggregates, and ready-mix concrete, generated revenues of $2.25 billion in Q2 2025, a slight decrease from $2.27 billion in Q2 2024. The segment maintained strong profitability with an adjusted EBITDA margin of 33.7%, nearly matching the 33.9% achieved in the prior year.

The following chart illustrates the Building Materials segment performance:

The Building Envelope segment, which includes roofing, insulation, and waterproofing solutions, delivered revenues of $970 million, essentially flat compared to $969 million in Q2 2024. Adjusted EBITDA margin was 26.9%, slightly below the 27.1% reported in Q2 2024. The acquisition of Ox Engineered Products contributed $33 million to this segment’s revenue in the quarter.

The segment’s performance is illustrated in this chart:

Strategic Initiatives

A key highlight of Amrize’s presentation was the launch of its ASPIRE program, designed to drive operational efficiencies and cost synergies across the company’s business segments. The program targets cumulative synergies of over $250 million between 2025 and 2028, with margin improvements of more than 50 basis points per year.

The ASPIRE program focuses on four key areas as shown in the following slide:

The company expects to begin achieving incremental savings in the second half of 2025, with the full annual savings run rate starting in 2026:

Amrize is also pursuing growth through strategic acquisitions and capacity expansions. During Q2, the company acquired Langley Concrete Group in the Greater Vancouver Area, opened a new aggregates quarry in Oklahoma with approximately 200 million tons of reserves, and broke ground on a fly ash beneficiation facility in Virginia.

The company highlighted several major organic growth projects currently underway:

These expansion projects include increasing capacity at the flagship Ste. Genevieve Cement Plant in Missouri by approximately 660,000 tons (coming online in Q4 2025), building a new Malarkey Shingles Plant in Indiana that will increase shingle production capacity by over 50% (expected in H2 2026), and expanding the St. Constant Cement Plant in Quebec to add approximately 300,000 tons of capacity.

Financial Position & Outlook

Amrize has established a strong balance sheet following its spin-off, with a net leverage ratio of 1.8x as of June 30, 2025. The company expects this ratio to improve to under 1.5x by year-end 2025, providing financial flexibility for its growth strategy.

For the full year 2025, Amrize provided the following financial targets:

The company’s capital allocation strategy prioritizes investments in business expansion, strategic acquisitions, and shareholder returns through dividends and opportunistic share buybacks.

Forward-Looking Statements

Looking ahead, Amrize’s management expressed confidence in the company’s long-term growth prospects, citing several favorable market trends. While acknowledging near-term challenges from market uncertainty and higher interest rates, particularly in the residential and smaller commercial sectors, the company highlighted long-term growth drivers including infrastructure modernization, onshoring of manufacturing, data center expansion, and addressing the North American housing shortage of 4.9 million homes.

The company’s consolidated outlook for the remainder of 2025 reflects these mixed market conditions, with a focus on operational efficiency and strategic growth initiatives to drive performance:

With its diversified business model, strong market positions, and focus on operational excellence through the ASPIRE program, Amrize appears well-positioned to navigate current market challenges while building a foundation for long-term growth in the North American building materials and envelope solutions market.

Full presentation:

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