Amrize Ltd earnings

Management highlights

- Strong start to the year with 4.7% revenue growth for total company. - Building materials had excellent Q1 with double-digit volume growth, adjusted EBITDA up 42%. - Building envelope affected by soft roofing demand, but expecting commercial new starts to convert to roofing demand. - Invested $272 million in capital expenditures in Q1, on track to invest $900 million in 2026. - Completed acquisition of PB Materials, which started contributing to results. - Board declared first quarterly dividend of 11 cents per share and plan to begin share repurchase program after Q1 earnings. - Aspire program on track to achieve 70 basis points of margin expansion in 2026 and $250 million in synergies through 2028. - Acquisition of BB Materials strengthens aggregates business.

Guidance

- Expect cement pricing to be up low single digits and aggregates pricing up mid single digits on freight adjusted basis for full year. - Reaffirm 2026 guidance with revenues growing 4 to 6% and adjusted EBITDA growing 8 to 11% including contribution from PB materials acquisition. - Building materials expected to drive growth and margin expansion. - Building envelope expects low single-digit growth in commercial roofing volumes and flat volumes in residential roofing with improvement in second half.

Segment performance

Building materials: Revenues $1.5 billion, up 12.9%, double-digit volume growth in cement and aggregates, adjusted EBITDA grew 42% with margin expansion of 230 basis points. Building envelope: Revenue $678 million, down 9.8% due to soft roofing demand and pricing, adjusted EBITDA down due to lower volumes, price cost, and temporary plant disruption. Residential: Demand soft in Q1, expected stronger weather-related repair and refurbishment later, flat volumes expected for full year with improvement in second half.

Risks & headwinds

- Volatile macro environment and energy costs could impact results. - Temporary plant disruption in residential shingles business in Q1 could be a risk if not resolved. - Geopolitical instability in Middle East could impact energy costs and pricing. - Soft demand in building envelope segment could continue if not reversed by pricing actions and demand from commercial projects.

Analyst Q&A

• Q: Anthony Petinari from Citi asked about confidence in reiterating 2026 guide given volatile macro environment.

  A: Jan said they had good start, increasing customer demand, double-digit volume growth in Q1, basics and initiatives in place, and addressed energy costs.

• Q: Keith Hughes with Truist asked about cement pricing turnaround.

  A: Jan and Baris mentioned double-digit volume growth, mix effect in Q1, pricing in place for April, and positive pricing expected throughout the year.

• Q: Pujarini Ghosh with Bernstein asked about building envelope pricing growth.

  A: Jan said target is to be price over cost positive for the year with price increases in place.

• Q: Cedar Ekblom with Morgan Stanley asked about building envelope outage.

  A: Jan said one residential roofing factory was out for four weeks due to production line issue, resolved but impacted Q1.

• Q: Trey Grooms with Stevens asked about aggregates pricing.

  A: Jan said mixed price increase in Q1, more price increases and fuel surcharges in Q2.

• Q: Michael Dudas with Vertical Research asked about building envelope order activity.

  A: Jan said commercial projects from 2025 expected to convert to roofing volumes in second half of 2026 and re-roofing expected to be more significant.

• Q: Julian Radlinger with UBS asked about large customer affecting cement prices.

  A: Jan said there was a large customer project with special price, contributing to volume growth but softening average price.

• Q: Martin Huesler with ZKB asked about sales outlook being conservative.

  A: Jan said guidance is based on focusing on 8-11% adjusted EBITDA growth and being cautious about overall economy.

• Q: Will Jones with Redburn asked about cement pricing regional differences and import economics.

  A: Jan said implemented price increases in Canada and US, and will see how cost environment impacts import economics.

• Q: Yasin Tahari with Onfield Research asked about import strategy.

  A: Jan said strategy is to go almost to zero in imports with commissioned plant expansion.