Amrize Shares Drop Over 10% After Q2 Miss and Lowered Outlook

Shares of Amrize AG (NYSE:AMRZ) slid more than 10% in Thursday’s premarket session, as the company reported disappointing second-quarter earnings and issued a full-year forecast that significantly undercut Wall Street expectations.

For the second quarter, Amrize posted a 1% year-over-year decline in group revenue, while EBITDA fell 6%, and margins narrowed by 150 basis points. The company noted that margins would have remained flat if not for increased corporate expenses.

“Clearly we need to understand whether these are recurring, which is not clear from the release,” Morgan Stanley analysts commented in a note following the report.

Building Materials revenue fell 1%, while EBITDA was down 2% and margins contracted by 20 basis points. Volume weakness was apparent, with a 6% drop—underperforming sector peers including CRH (NYSE:CRH), Heidelberg (TG:HDD), and Vulcan Materials (NYSE:VMC), all of which reported margin improvements in their heavyside operations. Pricing gains were minimal at just 0.5%. Management pointed to adverse weather and postponed project starts in both the residential and commercial sectors as the primary headwinds for volume.

The Building Envelope segment showed flat revenue compared to the same period last year. EBITDA edged down 1%, with margins declining 20 basis points. While the acquisition of Ox contributed a 3% lift in revenue, performance still lagged industry rivals such as Carlisle, Morgan Stanley analysts noted.

One of the most concerning areas was cash flow. Amrize reported a $450 million operating cash outflow in the first half—substantially higher than the outflow during the same period last year. According to Morgan Stanley, a “big build in receivables” was a factor.

“No explanation in the release for cash trends, clarity needed, key to understand if some of this is down to the spin,” said Morgan Stanley’s Cedar Ekblom.

Looking ahead, the company introduced its 2025 guidance, which includes revenue and EBITDA midpoint forecasts that are 3% and 8% below consensus estimates, respectively, according to Visible Alpha. Ekblom noted that the results “weaken our thesis,” adding that Morgan Stanley now anticipates “meaningful downgrades.”

Despite the disappointing short-term performance, analysts still see longer-term potential, particularly in Amrize’s M&A-driven strategy within a fragmented market. However, sentiment is expected to remain muted for the time being.

“The market probably takes a ‘show me’ approach,” Ekblom added.

Amrize currently trades at 9.8x estimated FY2025 EBITDA, though the analyst warned that “this does have some downside risk.”

Amrize stock price

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