01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Amrize Ltd (AMRZ) reported a weaker first quarter of 2026 on a standalone basis, with a net loss attributable to the Company of $116 milliona, or $(0.21) per share, versus a $87 million loss ($(0.16) per share) a year earlier.
Revenue rose 4.7% to $2,178 millionb, driven by volume growth in Building Materials (up 12.9%, including the PB Materials acquisition), but Adjusted EBITDA fell 10.3% to $192 million and Adjusted EBITDA margin contracted to 8.8% from 10.3%. Building Envelope was the main drag: segment revenue fell 9.8% and segment Adjusted EBITDA fell 37.1% on lower prices, lower volumes, a temporary plant disruption and higher warranty accruals. Standalone corporate costs also rose $26 million, and SG&A increased 22.2%.
Interest expense fell 40.7% to $70 millionc as related-party debt was retired after the spin-off. Cash flow was seasonally negative, with operating cash outflow of $896 million and free cash flow of $(1,163) million, compared with $(1,065) million a year earlier. Investing outflows included the $425 million PB Materials acquisition.
Cash fell to $1,099 milliond, and short-term commercial paper borrowings of $777 million were drawn to fund the working-capital build. Management's disclosure controls were concluded to be not effective because of a previously reported material weakness in internal control over financial reporting, tied to insufficient U.S. GAAP accounting personnel. Remediation is ongoing, and the company implemented a new financial consolidation system on January 1, 2026.
Shareholder-return actions are notable after quarter-end. Shareholders approved a $0.44 per share special dividend, paid May 4, 2026, and up to $0.44 per share in ordinary annual dividends, the first installment being $0.11 per share payable May 20, 2026.
The Board also authorized a $1.0 billion share repurchase program with a 12-month term. Given the seasonal pattern of the business, investors will want to watch whether the second and third quarters restore earnings and cash generation, and whether the material weakness is remediated.
02—Key points
Key Highlights
- Revenue increased 4.7% to $2,178 million, with Building Materials up 12.9% on volume growth and the PB Materials acquisition, while Building Envelope declined 9.8%.
- Net loss attributable to the Company widened to $(116) million, or $(0.21) per share, from $(87) million, or $(0.16) per share, in Q1 2025.
- Adjusted EBITDA declined 10.3% to $192 million; margin fell to 8.8% from 10.3%, with Building Envelope Adjusted EBITDA down 37.1% and unallocated corporate costs up to $56 million from $30 million.
- Free cash flow was $(1,163) million, versus $(1,065) million a year earlier, reflecting seasonal working-capital build; short-term commercial paper borrowings of $777 million funded the shortfall.
- Interest expense, net fell 40.7% to $70 million following the reduction of related-party debt after the spin-off from Holcim.
- Disclosure controls were concluded not effective due to a previously reported material weakness in internal control over financial reporting; remediation is in progress.
- Post-quarter capital returns include a $0.44 per share special dividend (paid May 4, 2026), up to $0.44 per share in ordinary dividends, and a $1.0 billion share repurchase authorization.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Amrize lost $0.05.
- Revenue$2.18B100.0%
- Cost of revenue−$1.97B90.5%
- Gross profit$208.0M9.5%
- Operating costs−$280.0M12.8%
- Operating income−$72.0M3.3%
- Interest, other & tax−$33.0M1.5%
- Net income−$105.0M4.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.18B$2.09B | +4.4% |
| Cost of Revenue | $1.97B$1.85B | +6.5% |
| Gross Profit | $208.00M$237.00M | −12.2% |
| SG&A Expenses | $285.00M$243.00M | +17.3% |
| Operating Income | -$72.00M-$5.00M | −1340.0% |
| Interest Expense | $72.00M$11.00M | +554.5% |
| Net Income | -$105.00M-$94.00M | −11.7% |
| EPS (Basic) | $-0.19$-0.17 | −11.8% |
| EPS (Diluted) | $-0.19$-0.17 | −11.8% |
| Shares Outstanding (Basic) | 553.20M553.10M | 0.0% |
| Shares Outstanding (Diluted) | 553.20M553.10M | 0.0% |
05—Questions
Frequently Asked Questions
Why did Amrize report a larger net loss despite higher revenue?
Revenue grew 4.7%, but gross profit fell 5.0% as cost of revenues rose faster, partly due to higher warranty accruals in Building Envelope. SG&A rose 22.2% to $292 million on standalone-company costs, including headcount, compensation and professional services. Together these outweighed the benefit of lower interest expense, pushing the operating loss to $(76) million from $(16) million.
How is the Building Envelope segment performing?
Weakly. Segment revenue fell 9.8% to $678 million on lower volumes and pricing, and segment Adjusted EBITDA fell 37.1% to $78 million. Management cited price decreases, lower volumes, inflation, and a temporary plant disruption. Building Envelope's share of revenue dropped to 31.1% from 36.1%.
What drove growth in Building Materials?
Segment revenue rose 12.9% to $1,500 million on strong cement and aggregates demand from new project starts and multi-year mega projects, plus the PB Materials acquisition and favorable FX. Segment Adjusted EBITDA rose 41.7% to $170 million, aided by economies of scale and margin expansion.
Is Amrize's balance sheet and liquidity under pressure?
Liquidity is adequate but has tightened seasonally. Cash fell to $1,099 million from $1,922 million at year-end, and $777 million of commercial paper was outstanding against a $2 billion program. The $2 billion revolving credit facility is undrawn. Long-term debt was $5,269 million, and the company stated it was in compliance with its financial covenants, including a maximum consolidated net leverage ratio of 3.75x.
What does the material weakness mean for investors?
Management concluded that disclosure controls were not effective because of insufficient accounting personnel with U.S. GAAP expertise, a weakness previously reported in the 2025 10-K. Management believes the financial statements still fairly present results under U.S. GAAP. Remediation includes hiring qualified staff, establishing finance policy and disclosure committees, and using outside accounting resources. The weakness will not be considered remediated until controls operate effectively over a sufficient period.
06—Continue