$AMRZ · Amrize Ltd
Amrize reported Q3 FY2026 results with revenue of $3.771B (+2.2% YoY), net income of $558M (+3.3%), and adjusted EPS flat at $1.05. Adjusted EBITDA rose just 0.2% to $1.076B as Building Envelope segment EBITDA fell 14.6%. The company cut full-year guidance to $12.2B-$12.4B revenue and $2.95B-$3.05B Adjusted EBITDA, citing persistent cost inflation and elevated interest rates.
- Revenue $3.771B, up 2.2% YoY, driven by $78M in price increases and $77M from acquisitions
- Adjusted EBITDA $1.076B, up only 0.2% YoY; margin contracted 60bps to 28.5%
- Building Envelope segment Adj EBITDA fell 14.6% to $182M on higher freight and raw material costs
- FY 2026 guidance revised: revenue $12.2B-$12.4B, Adj EBITDA $2.95B-$3.05B, reflecting cost inflation and elevated rates
- Free cash flow was a use of $551M YTD vs. $186M use prior year; net debt $5.549B, leverage 1.8x
Extended-hours trading at $36.85, down 7.94% vs. the $40.03 regular close. The sharp selloff reflects disappointment with flat adjusted EPS, Building Envelope margin compression, and the downward guidance revision on a $21.89B market cap.
A guidance cut paired with flat adjusted EPS and a 410bps margin drop in Building Envelope signals that inflation is overwhelming Amrize's pricing power, despite strong data-center and infrastructure tailwinds.
Amrize's Building Envelope margin compression mirrors broader building-products sector struggles with sticky raw material and freight inflation. Data center and infrastructure mega-trends provide a demand floor, but residential exposure remains a drag as rates stay elevated.
Cost inflation from oil prices and raw materials continues to pressure margins, particularly in Building Envelope where price-cost positivity is now pushed into 2027. Elevated interest rates may further dampen Q4 volumes, especially in residential roofing tied to sluggish existing-home sales.