Amrize shares jump on revenue beat, in-line adj. EBITDA; guidance raised

Investing.com -- Amrize AG (NYSE:AMRZ) jumped more than 5% in premarket trading Wednesday after the building materials company reported third-quarter revenue that exceeded analyst expectations and raised its full-year revenue guidance, despite a slight earnings miss.

The company reported third-quarter revenue of $3.68 billion, surpassing the analyst consensus of $3.48 billion and representing a 6.6% increase from the same period last year.

However, earnings per share came in at $0.98, falling short of the $1.02 analyst estimate and down from $1.00 in the year-ago quarter.

The company’s Building Materials segment saw strong 8.7% revenue growth, while a temporary equipment outage in its cement network resulted in higher costs and lower margins.

"Together, we delivered strong revenue growth of 6.6% and Free Cash Flow generation of $674 million, up $221 million," said Jan Jenisch, Chairman and CEO. "Our Building Materials business had strong sales with increased customer demand, while margin was affected by a temporary equipment outage in our cement network."

Adjusted EBITDA for the quarter was $1.07 billion, down 3.3% from $1.10 billion in the same quarter last year, with margins contracting 300 basis points to 29.0%. The figure was roughly in line with consensus estimates.

The company noted that the equipment outage in its cement network resulted in $50 million of higher manufacturing and distribution costs, while the prior-year quarter included $39 million more in asset sales.

The Building Envelope segment showed improvement with Adjusted EBITDA increasing 9.0% to $217 million, with margins expanding 190 basis points to 24.1%, driven by operational efficiencies and lower raw material costs.

"A better set of results than Q2, margin improvement in Envelope encouraging," Morgan Stanley analyst Cedar Ekblom commented. "Outage cost a bit of a drag, but one off."

Separately, Jefferies analysts said that "against a nervous backdrop, Amrize 3Q25 Adj EBITDA coming in-line with consensus despite a $50m hit from an equipment outage in cement should reassure."

Amrize raised its fiscal year 2025 revenue guidance to $11.7-12.0 billion from the previous $11.4-11.8 billion, while maintaining its Adjusted EBITDA forecast of $2.9-3.1 billion. The company also reaffirmed its target to reduce its net leverage ratio to under 1.5x by year-end 2025, down from 1.7x at the end of the third quarter.

Free cash flow for the quarter reached $674 million, up $221 million YoY, driven by positive working capital and lower cash tax payments.

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