Amrize AG (NYSE:AMRZ) climbed more than 5% in premarket trading Wednesday after the building materials giant delivered third-quarter revenue above expectations and raised its full-year revenue guidance, despite a slight earnings miss.
The company posted revenue of $3.68 billion for the quarter, surpassing the $3.48 billion analyst consensus and marking a 6.6% year-over-year increase.
However, earnings per share came in at $0.98, short of the $1.02 estimate and below the $1.00 reported a year earlier.
The Building Materials segment was the main growth driver, with sales climbing 8.7%, though a temporary equipment outage in its cement network pushed costs higher and weighed on margins.
“Together, we delivered strong revenue growth of 6.6% and Free Cash Flow generation of $674 million, up $221 million,” said Jan Jenisch, Chairman and CEO. “Our Building Materials business had strong sales with increased customer demand, while margin was affected by a temporary equipment outage in our cement network.”
Adjusted EBITDA stood at $1.07 billion, down 3.3% from $1.10 billion a year earlier, with margins narrowing by 300 basis points to 29.0% — roughly in line with consensus estimates.
The company explained that the cement network outage resulted in $50 million of additional manufacturing and distribution expenses, while the prior-year period benefited from $39 million in asset sales.
Meanwhile, the Building Envelope division showed solid improvement, with Adjusted EBITDA rising 9% to $217 million and margins expanding 190 basis points to 24.1%, driven by operational efficiencies and lower input costs.
“A better set of results than Q2, margin improvement in Envelope encouraging,” said Morgan Stanley analyst Cedar Ekblom. “Outage cost a bit of a drag, but one off.”
Jefferies analysts added that “against a nervous backdrop, Amrize 3Q25 Adj EBITDA coming in-line with consensus despite a $50m hit from an equipment outage in cement should reassure.”
Looking ahead, Amrize raised its FY2025 revenue outlook to $11.7–12.0 billion, up from $11.4–11.8 billion, while maintaining its Adjusted EBITDA forecast of $2.9–3.1 billion.
The company also reaffirmed its goal to reduce net leverage below 1.5x by year-end 2025, compared with 1.7x at the end of Q3.
Free cash flow reached $674 million for the quarter, an increase of $221 million year-over-year, supported by strong working capital management and lower cash taxes.