Amrize cuts 2026 profit outlook as roofing weakness and costs bite; shares down 5%

Investing.com -- Shares of U.S. building materials maker Amrize fell over 5% in premarket trade on Thursday after it cut its full-year 2026 core profit forecast, as weak shingle demand, adverse weather and oil-driven cost inflation weighed on its roofing business.

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The company now expects adjusted EBITDA of $2.95 billion to $3.05 billion and revenue of $12.20 billion to $12.40 billion for 2026. Amrize described its fourth-quarter outlook as "mixed."

Core profit at its Building Envelope roofing unit fell 14.6% to $182 million from $213 million a year earlier, as higher freight and raw material costs and lower shingle volumes were only partly offset by price increases and surcharges. Revenue at the unit rose 3.6% to $929 million.

Shingle volumes were hit by a lack of significant storms and sluggish existing-home sales. Amrize said normal seasonal de-stocking should weigh on shingle demand in the fourth quarter, and expects the gap between prices and costs at the unit to improve from the third quarter.

Third-quarter adjusted EBITDA was $1.08 billion, up 0.2% from a year earlier, on revenue of $3.77 billion, up 2.2%. The adjusted EBITDA margin was 28.5%, versus 29.1% a year earlier. The figure includes $44 million of unallocated corporate costs, compared with $52 million a year earlier.

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Higher costs reduced adjusted EBITDA by $97 million, which Amrize attributed primarily to oil-price-driven inflation in freight, diesel and raw materials.

Lower volumes cut revenue by $69 million and currency and other items by $28 million, while pricing added $78 million, surcharges $23 million and the acquisitions of PB Materials and Rapid Redi-Mix $77 million.

Net income rose 3.3% to $558 million. Diluted earnings per share were $1.02, up 4.1%, while adjusted diluted earnings per share were $1.05, flat from a year earlier.

At its Building Materials unit, revenue rose 1.8% to $2.84 billion and adjusted EBITDA rose 2.7% to $938 million. Cement volumes fell 4.2% and aggregates volumes fell 0.2%, which Amrize blamed on weather in the Northeast, South and Central regions. Cement prices rose 1.8% and aggregates prices rose 6.9%.

For the fourth quarter, Amrize expects cement pricing flat to up low-single digits and aggregates pricing up mid-single digits, but said elevated interest rates could drive softer volumes.