Amrize Ltd (AMRZ) Earnings

Management highlights

- Overall Company Performance * Delivered 8.6% total revenue growth and 6.7% industry-leading organic growth in Q2 2026, driven by strong megaproject demand from data centers, energy, advanced manufacturing, and infrastructure modernization * Net income grew 14.4% year-over-year, diluted EPS increased 14.7%, adjusted EBITDA grew 5.8% to $986 million, and adjusted diluted EPS grew 8.6% * The company maintains a strong investment-grade balance sheet with a 1.7x leverage ratio, $729 million in cash, and $4 billion in total available liquidity as of Q2 end 2026 - Market Environment and End Market Demand * Strong backlog led by commercial and infrastructure demand; over 300 new data centers are planned across North America, and AMRISE's footprint positions it to serve over 90% of these projects * Federal infrastructure funding remains largely unspent, and the proposed Build America 250 Act extends infrastructure tailwinds, with strong funding for cement and aggregates-intensive projects aligned to AMRISE's footprint * Policy prioritizes domestic building materials in the US and Canada, which aligns with AMRISE's local production and distribution strategy * New residential construction remained soft in Q2, but AMRISE grew residential roofing market share and volumes, with long-term growth supported by underlying US housing demand - Aspire Operational Excellence Program * Delivered $29 million in cost savings in Q2 2026, remains on track to hit full-year 2026 savings of $80 million and a 2028 total savings target of $250 million * Over 650 new suppliers have been onboarded to date, optimizing third-party spend across raw materials, logistics, services, and equipment - Capital Allocation and Growth Investments * Invested $241 million in CAPEX in Q2 to expand production capacity and improve efficiency across high-growth markets: completed a 660,000 ton expansion at its flagship Missouri cement plant, broke ground on a 300,000 ton expansion at its Quebec San Constant plant, and has capacity expansion projects underway in Texas, Alberta, and five greenfield aggregate quarry projects adding 150 million tons of total reserves * A new state-of-the-art Malarkey Shingles manufacturing plant in Indiana is progressing, expanding the company's footprint into the attractive Midwest and Eastern US markets * Closed the acquisition of Rapid Ready Mix (a Dallas-Fort Worth ready-mix concrete producer) in July 2026, which is expected to be EPS accretive in 2026 and delivers significant synergies with AMRISE's existing Texas cement and aggregates network; PB Materials, the 2026 West Texas aggregates acquisition, is already exceeding performance expectations * Returned $502 million to shareholders in Q2 2026: repurchased $197 million in shares under its $1 billion repurchase program, paid $305 million in dividends, and the board declared a Q2 2026 dividend of 11 cents per share (not subject to Swiss withholding tax)

Guidance

- Full-year 2026 revenue guidance is revised upward to $12.5 billion to $12.7 billion, from prior guidance - Full-year 2026 adjusted EBITDA guidance is revised downward to $3.1 billion to $3.2 billion, driven by timing lags between oil-driven cost inflation and price increase realization - For building materials, management continues to expect durable full-year volume growth for cement and aggregates, with year-over-year volume growth moderating in H2 2026 due to tougher comparisons. Full-year cement pricing is expected to be flat to up low single digits, and aggregates pricing is expected to be up mid-single digits on a freight-adjusted basis - For building envelope, full-year commercial roofing volume growth guidance remains low single digits, while residential roofing volume guidance is raised to high single-digit growth from prior flat guidance - Both segments are expected to see improved price-over-cost performance in H2 2026 relative to H1, turning price-over-cost positive in Q4 2026 with continued improving trends entering 2027 - Full-year net interest expense is expected to be approximately $340 million, unchanged from prior guidance - The Aspire program is still on track to deliver $80 million in full-year 2026 cost savings, with M&A expected to contribute an additional $30 million to $50 million in benefits

Segment performance

1. Building Materials: Revenues reached $2.4 billion, an 8.2% year-over-year increase, with 5.6% organic growth, contributing 70.6% of total company revenue for the quarter. Cement volumes grew 5% year-over-year, while aggregate volumes grew 6.5% year-over-year with accelerating two-year stacked growth for the second consecutive quarter. Year-over-year constant currency cement pricing fell 0.2%, but increased 2.1% sequentially from Q1 2026; freight-adjusted aggregate pricing grew 4% year-over-year. Adjusted EBITDA for the segment was $793 million, up 5.2% year-over-year, with growth driven by volume gains, aggregate price increases, acquisition contributions, and operational cost savings, partially offset by higher freight and diesel costs and lapping $17 million in 2025 insurance proceeds. 2. Building Envelope: Revenues reached $1 billion, a 9.4% year-over-year increase, contributing 29.4% of total company revenue for the quarter. Strong growth was driven by above-market volume gains in commercial roofing (driven by large-scale data center and warehouse projects) and a record-high quarter for residential roofing revenue, partially offset by soft demand for weatherproofing products tied to weak new residential construction (which makes up only 10% of the segment). Adjusted EBITDA declined 5.2% year-over-year, a material sequential improvement from Q1's performance, with the decline driven by timing lags between oil-driven cost inflation (higher freight and raw material costs) and price increase realization, partially offset by stronger volumes.

Risks & headwinds

- Oil price-driven inflation has led to persistently higher freight, diesel, and raw material costs, with a recent sharp spike in US freight rates due to tightened transport capacity - Timing lags between price increase implementation, fuel surcharge rollout, and cost inflation created a negative price-over-cost gap in H1 2026 that will act as a headwind to full-year 2026 profitability - Weak new residential construction continues to weigh on demand for weatherproofing products in the building envelope segment - There are lumpy non-core items (such as insurance proceeds and land sales) that create volatility in year-over-year comparisons, with 2026 lapping $55 million in one-time 2025 insurance proceeds that creates a year-over-year profitability headwind

Analyst Q&A

• Q: Cement prices were down slightly year-over-year in H1, so what gives management confidence prices will rise in H2, and are these new hikes or lagged impacts from existing increases? /

  A: Most 2026 cement price increases were implemented April 1, and while year-over-year prices were down 0.2% in Q2, prices rose a healthy 2.1% sequentially from Q1. Management expects this sequential momentum to continue, resulting in low single-digit cement price growth for H2 that will deliver full-year flat to low single-digit pricing, outperforming peer results that showed larger year-over-year declines. We are confident in pricing traction as we move through the second half.

• Q: What is the current M&A outlook, deal pipeline, and strategic focus for acquisitions over the next 6-12 months? /

  A: AMRISE maintains a healthy, growing M&A pipeline across both building materials and building envelope, with more deal activity expected in the sector. The company prioritizes value-accretive deals that expand its network in high-growth markets: the recent PB Materials and Rapid Ready Mix acquisitions in Texas have already performed above expectations and delivered strong synergies with existing cement and aggregates operations. Management is actively working on additional targeted transactions.

• Q: What is driving strong residential roofing volume growth in building envelope, and when will the segment reach price-cost neutrality? /

  A: Strong volume growth comes from successful commercial initiatives that have allowed AMRISE to gain market share even in a soft new construction environment, reversing prior negative volume trends. Pricing has improved sequentially quarter-over-quarter, and additional price increases implemented in July and August will continue the positive price trajectory through H2. Oil-driven transportation and raw material cost inflation has created temporary pressure, but management expects the positive price-cost trend to continue through the second half.

• Q: What drove the downward revision to full-year adjusted EBITDA guidance, split by segment and between lower price realization versus higher-than-expected costs? /

  A: The entire downward guidance revision comes from the larger-than-expected impact of oil-driven cost inflation and pricing realization lags, split evenly into three equal parts: 1) more pronounced lag between building envelope price increases and raw material/freight cost inflation than initially expected; 2) full-year cement pricing in building materials coming in slightly lower than prior expectations due to geographic mix impacts in Q2; 3) fuel surcharges in building materials have not fully offset sharp recent increases in US freight rates. Two-thirds of the total headwind comes from building materials, and one-third from building envelope.