Amrize Q4 Earnings Call Highlights

Core Insights - The company reported a mixed performance in Q4, with total revenue down 0.4% year over year, while the building materials segment showed growth and margin expansion [4] - Adjusted EBITDA for building materials was $705 million, up 4.9% year over year, attributed to volume growth and pricing improvements [2] - The company anticipates revenue growth of 4% to 6% and adjusted EBITDA growth of 8% to 11% for 2026, including contributions from the pending PB Materials acquisition [6][15] Financial Performance - Building envelope revenue was $678 million in Q4, down 11.8% year over year, primarily due to weaker residential roofing demand [1] - Building materials revenue was approximately $2.2 billion, up 3.9%, driven by higher cement and aggregates volumes [4] - The company reported full-year revenue of $11.8 billion, up 0.9%, and adjusted EBITDA of $3.0 billion for 2025 [5] Market Demand - Data centers are highlighted as a key growth driver, with the company supporting over 30 data center projects in 2025 [7] - The commercial market is improving, expected to benefit from lower interest rates and increased investments in advanced manufacturing and logistics [8] - Residential markets remain soft, with expectations for gradual demand recovery later in the year [9] Investments and Acquisitions - The company invested $788 million in 2025 and plans to increase this to $900 million in 2026, focusing on capacity expansion and distribution capabilities [10] - The acquisition of PB Materials is expected to add over $180 million in annual revenue and is anticipated to be EPS and cash accretive in 2026 [11] Cash Flow and Balance Sheet - The company generated $1.5 billion in cash flow for 2025, reflecting a 49% cash conversion rate [5] - Net debt at year-end was approximately $3.3 billion, down more than $1.5 billion from the previous quarter, with nearly $6 billion in available liquidity [13] Shareholder Returns - A $1 billion share repurchase program has been approved, along with a proposed special one-time dividend of $0.44 per share and an annual ordinary dividend of $0.44 per share [14] 2026 Outlook - The company expects low single-digit increases in cement pricing and mid-single-digit increases in aggregates pricing for 2026 [16] - Management is targeting 70 basis points of margin expansion in 2026 through the Aspire cost and efficiency program, aiming for $250 million in full synergies by 2028 [17]