10-QPeriod: Q2 FY2025

Amrize Ltd Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:AMRZ

Summary

Amrize Ltd (AMRZ) reported its financial results for the period ending June 30, 2025, marked by its recent separation from Holcim Ltd and transition to an independent public company. The company experienced a slight decrease in revenues for both the three and six-month periods compared to the prior year, primarily due to lower sales volumes in the Building Materials segment, partially offset by price increases and acquisitions. While gross profit saw a marginal decline, selling, general, and administrative expenses increased significantly, largely attributed to costs associated with the spin-off and establishing standalone operations. Net income and Adjusted EBITDA both declined year-over-year, reflecting the impact of increased operating expenses and challenging market conditions, including adverse weather and softness in residential markets. Despite these headwinds, Amrize continues to invest in strategic growth areas like its Building Envelope segment and aggregates business, and has actively managed its capital structure through new debt issuances and a debt-for-debt exchange. The company is also focused on remediating a previously disclosed material weakness in internal controls over financial reporting, a critical step for a newly public entity.

Financial Statements
Beta

Key Highlights

  • 1Revenues decreased slightly by 0.7% for the three months and 2.0% for the six months ended June 30, 2025, compared to the prior year, largely due to lower sales volumes in Building Materials, partially offset by price increases and acquisitions.
  • 2Net income attributable to the Company decreased by 9.5% to $429 million for the three months and 20.5% to $342 million for the six months ended June 30, 2025, year-over-year.
  • 3Adjusted EBITDA saw a decline, falling to $947 million for the three months and $1,161 million for the six months ended June 30, 2025, reflecting lower operating performance and increased SG&A costs.
  • 4Selling, General, and Administrative (SG&A) expenses increased substantially by 31.1% for the quarter and 22.0% for the six months, primarily driven by spin-off related costs, rebranding, and IT investments.
  • 5The company completed two acquisitions in the first half of 2025, including Langley Concrete for $69 million and an additional stake in Jamaica Aggregates Limited, bolstering its Building Materials segment.
  • 6Amrize has significantly restructured its debt, issuing $3.4 billion in senior unsecured notes and completing a $1.8 billion debt-for-debt exchange, which were used to repay related-party indebtedness.
  • 7The company continues to address a previously disclosed material weakness in internal controls over financial reporting by recruiting personnel and establishing new committees, though it remains unremediated.

Frequently Asked Questions

The spin-off has resulted in significant one-time costs related to the separation, rebranding, and establishing standalone operations, which have notably increased Selling, General, and Administrative (SG&A) expenses. While the company is now independent, it is also navigating the complexities of operating without the shared services and financial support previously provided by Holcim, impacting its financial results in the short term.

Amrize has substantially restructured its debt. The company issued $3.4 billion in new senior unsecured notes and completed a $1.8 billion debt-for-debt exchange. These actions were largely undertaken to replace intercompany debt with Parent (Holcim) and to establish a more robust, independent capital structure suitable for a standalone public entity.

The decrease in net income and Adjusted EBITDA is primarily attributed to increased operating expenses, particularly higher SG&A costs due to spin-off activities and the transition to a standalone company. Additionally, lower sales volumes in the Building Materials segment and challenging market conditions, such as adverse weather and a softer residential construction market, have impacted revenue and profitability.

Amrize is currently working to remediate a previously identified material weakness in its internal control over financial reporting, stemming from insufficient accounting and supervisory personnel with the required technical expertise. While remediation efforts are underway, including hiring and committee establishment, the material weakness is not yet considered remediated.