Amrize Ltd (AMRZ) reported stronger second-quarter profit and revenue, though escalating freight, diesel, and raw material costs compressed margins across its North American construction materials network.

Net income for the quarter climbed 14.4% to $476 million, up from $416 million in the same period last year. Diluted earnings per share rose 14.7% to $0.86, while adjusted earnings reached $0.88. Revenue increased 8.6% to $3.49 billion, compared with $3.22 billion one year earlier.

Amrize shares closed 3.14% lower at $51.22, then fell an additional 5.15% in after-hours trading to $48.58.

Revenue Drivers and Margin Trends

Higher sales volumes contributed $200 million to quarterly revenue growth, while recently acquired businesses added another $54 million. Aggregates pricing gains, favorable foreign exchange movements, and robust demand from large infrastructure projects across key markets provided additional support. The demand backdrop reflects sustained public infrastructure investment in the United States, where federal funding programs continue to direct capital toward roads, bridges, and transportation projects that consume cement, aggregates, and ready-mix concrete.

Adjusted EBITDA increased 5.8% to $986 million, though the adjusted EBITDA margin contracted by 80 basis points as rising freight, diesel, and raw material costs offset the benefits of stronger sales and operational savings. Diesel fuel is a significant operating input for construction materials companies, powering heavy hauling fleets that transport aggregates and cement across regional distribution networks.

Amrize countered cost pressures through price increases, fuel surcharges, and its ASPIRE cost-reduction program. However, oil-linked inflation continued to weigh on earnings and shaped the company's updated annual outlook.

Segment Performance

Building Materials led the company's growth, with segment revenue rising 8.2% to $2.45 billion. Cement volumes increased 5.0% and aggregates volumes advanced 6.5% year over year. Acquisitions and stronger aggregates pricing further supported the segment.

Segment adjusted EBITDA for Building Materials increased 5.2% to $793 million despite higher freight and diesel expenses. Cement pricing declined 0.2% in constant currency, though it showed improvement from the first quarter. Aggregates pricing rose 4.0% on a constant-currency and freight-adjusted basis.

Building Envelope revenue grew 9.4% to $1.05 billion, driven by commercial and residential roofing demand. However, segment adjusted EBITDA fell 5.2% to $237 million as higher freight and raw material costs outweighed volume growth and compressed the segment margin.

Updated Guidance and Capital Allocation

Amrize revised its full-year 2026 revenue guidance to a range of $12.5 billion to $12.7 billion. The company forecast adjusted EBITDA between $3.1 billion and $3.2 billion. Management indicated that while stronger pricing is anticipated, oil-related inflation will persist as an earnings headwind.

The company targets approximately $80 million in ASPIRE program savings during 2026 and plans roughly $900 million in capital spending focused on expansion and efficiency initiatives. Recent acquisitions in Texas are expected to further strengthen Amrize's cement, aggregates, and ready-mix network in one of the fastest-growing U.S. construction markets.

Amrize returned $502 million to shareholders through dividends and share repurchases during the quarter, including $197 million under its buyback program. Net debt stood at $5.28 billion, with a net leverage ratio of 1.7 times.

The company also revised prior-period financials after identifying immaterial accounting errors, primarily related to extended warranty revenue recognition.