Amrize Ltd (AMRZ) - Q2 2026 10-Q Summary
Business Context and Reporting Period
Amrize Ltd is a North American building solutions company operating in two segments: Building Materials (cement, aggregates, ready-mix concrete, asphalt) and Building Envelope (roofing, wall systems). The company became an independent public entity following its spin-off from Holcim Ltd on June 23, 2025. This report covers the quarterly period ended June 30, 2026.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenues | $3,494M | $3,218M | $5,675M | $5,307M |
| Net Income (Company) | $478M | $417M | $373M | $323M |
| Diluted EPS | $0.86 | $0.75 | $0.67 | $0.58 |
| Adjusted EBITDA | $986M | $932M | $1,178M | $1,157M |
| Operating Cash Flow | — | — | ($475M) Used | ($441M) Used |
| Free Cash Flow | — | — | ($986M) | ($860M) |
| Total Debt (Long-term + Current) | $5,269M | — | — | — |
| Cash & Equivalents | $729M | — | — | — |
Note: YTD Operating Cash Flow reflects seasonal working capital usage typical for the first half of the year.
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 8.6% year-over-year, driven by volume growth ($200M), acquisitions ($54M), price increases ($16M), and favorable foreign exchange ($6M).
- Profitability: Net income margin improved to 13.6% in Q2 2026 from 12.9% in Q2 2025. Adjusted EBITDA margin was 28.2% in Q2 2026 compared to 29.0% in Q2 2025.
- Segment Performance:
- Building Materials: Revenue up 8.2% and Adjusted EBITDA up 5.2% due to volume growth and price increases in aggregates.
- Building Envelope: Revenue up 9.4%, but Adjusted EBITDA declined 5.2% due to price decreases, higher freight costs, and material inflation.
- Interest Expense: Net interest expense decreased significantly (26.4% in Q2) compared to the prior year, reflecting the transition from related-party debt to a standalone capital structure with lower leverage.
- Acquisitions: Completed the acquisition of PB Materials for $425M in Q1 2026, contributing to revenue and EBITDA growth.
Guidance, Outlook, and Risks
- Capital Allocation: The company maintains a $1.0 billion share repurchase authorization (12-month expiration), with $0.8 billion remaining as of June 30, 2026. A special dividend of $0.44/share and an ordinary dividend of $0.11/share were paid in Q2.
- Outlook: Management expects continued growth driven by infrastructure investment, urbanization, and the "ASPIRE" program aimed at cost synergies. Seasonality is expected to improve cash flows in the second half of the year.
- Internal Controls: The company disclosed that disclosure controls and procedures were not effective as of June 30, 2026, due to a previously identified material weakness regarding insufficient accounting personnel with U.S. GAAP experience. Remediation efforts are ongoing.
- Financial Statement Revisions: The company revised prior period financial statements to correct an understatement of deferred revenue related to extended warranties (approx. $78M as of Dec 31, 2025).
- Risks: Key risks include construction industry cyclicality, raw material and energy cost volatility, weather disruptions, and the ability to realize synergies from the Holcim separation.
Investor Verification Checklist
- Internal Control Remediation: Verify the progress of hiring and training U.S. GAAP personnel to address the material weakness in internal controls.
- Deferred Revenue Accuracy: Confirm the impact of the $78M deferred revenue correction on future revenue recognition and warranty liabilities.
- Building Envelope Margins: Monitor the ability to offset freight and material cost inflation with price increases in the Building Envelope segment.
- Working Capital Seasonality: Track the reversal of working capital usage in H2 2026 to validate cash flow projections.
- Debt Covenants: Ensure continued compliance with the Consolidated Net Leverage Ratio covenant (max 3.75x).