Amrize's (AMRZ) Q2 earnings miss and reduced full-year adjusted EBITDA guidance showed weaker execution than its major peers and raised concerns about the company's ability to convert higher volumes into stronger profits, RBC Capital Markets said in a note Monday.
The investment firm said Amrize was the only "major heavyside" building-materials company to miss Q2 earnings estimates and cut full-year earnings before interest, taxes, depreciation, and amortization guidance, while its competitors beat expectations and maintained their outlooks.
Although Amrize has a well invested cement plant network, scale advantages and opportunities from vertical integration, rising volumes have not translated into higher profits, the firm said. Management has said that margins were affected by timing differences between cost increases and offsetting surcharges or price increases, according to the note.
The firm cut its EBITDA estimates for 2026 through 2028 by 4%, 6% and 7%, respectively, and reduced EPS estimates by 12%, 14% and 15%.
RBC downgraded Amrize to underperform from sector perform, and cut the price target to $48 from $60.
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