Amrize Ltd Ordinary Shares

Hello and welcome to the ANRISE Q4 2025 earnings conference call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Arun Amanani, Vice President of Investor Relations.

Great. Thank you so much and good morning, everyone. Welcome to Amarize's fourth quarter 2025 earnings conference call. We released our fourth quarter and full year financial results yesterday after the market closed. You can find both our earnings release and presentation for today's call in the investor relations section of our website at investors.amarize.com. On the call with me today are Jan Janisch, our chairman and CEO, and Ian Johnson, our CFO. Jan will open today's call with highlights from the full year and fourth quarter, as well as the growth investments we're making in our business. We will then review our financial performance for the quarter before turning the call back to Jan to discuss our outlook for 2026. We will then take your questions. Before we begin, during the call and in our slide presentation, we referenced certain non-GAAP financial measures, which we believe provide useful information for investors. We include reconciliations of non-GAAP financial measures to US GAAP in our earnings release and slide presentation. As a reminder, today's call is being webcast live and recorded. A transcript and recording of this conference call will be posted to our website. Any statement made about the future results and performance plans and expectations and objectives are forward-looking statements. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ from those presented during the call. The various factors including but not limited of the SEC. The company undertakes no obligation to publicly update or revise any forward-holding statements. With that, I'll now turn the call over to Jan.

Thank you, Arun, and thanks to everyone for joining us today. 2025 was a very important year for MRIs, as we did our successful spin-off and launch in June of the company. I have focused my time at our operations and projects across North America to see our work in action, meet with customers and hear from our people. What I see is a market leading footprint and a performance driven team. Here we are delivering for our customers as the partner of choice for their most important billing projects. For the full year 2025, we increased revenues by 9% to $11.8 billion, with $3 billion in adjusted EBITDA. We generated a strong cash flow of $1.5 billion, and our cash conversion rate was 49%. Overall, we completed the year with a net leverage ratio of 1.1 times. Our strong cash conversion provided flexibility and firepower to fuel our growth and return cash to our shareholders. We increased our investments to $788 million during 2025 to expand production, improve efficiencies, and best serve our customers in the most attractive markets. Last month, we were excited to announce our agreement to acquire PB Materials, the aggregates leader in West Texas, significantly expanding our position in this high-growth region. Delivering shareholder return, the board has approved a $1 billion share repurchase program and is proposing a special one-time dividend of $0.44 per share, payable following the annual general meeting. The board is also proposing an annual ordinary dividend of 44 cents per share be paid in quarterly installments. These dividends will be paid out of legal capital reserves from tax capital contributions and are not subject to Swiss withholding tax. The dividend and share program are subject to customary shareholder approvals at our AGM in April. Looking to the future, we are well positioned in our $200 billion addressable market, and we have set our 2026 guidance reflecting accelerating customer demand and profitable growth. This includes 46% growth in revenues and 8% to 11% growth in adjusted EBITDA. Let us look at some of the highlights of the fourth quarter. We saw growth, continued growth in building materials. The segment's revenues grew 3.9%, and more important, we expanded our adjusted EBITDA margins by 60 basis points. Both cement and aggregate volumes were up, and we had strong aggregate pricing growth in addition to production efficiency gains and first savings from our Aspire program. Within our building annual business, our results were affected by soft residential roofing volumes, and we expect residential demand to gradually return in this year. Our commercial roofing margins were up, driven by resilient repair and refurbishment. At the total company level, revenues were slightly lower, 0.4% in the fourth quarter. Let us look at some of the market trends at M-RISE. You see continued infrastructure demand and an improving commercial landscape. In the commercial market, which makes up half of our business, demand is improving, led by new data centers. Data center construction has been and continues to be a significant bright spot as type of that will power the AI economy. This is the largest infrastructure expansion in recent history, and the United States is at the center. In fact, over 40% of global data center infrastructure investment is expected to be spent in the United States through 2030. Efficiency, innovation, and reliability are key in this market. making it a space where MRIs, billing solutions, and unparalleled footprint offer strong competitive advantages. In 2025 alone, we supported and supplied more than 30 data center projects, and we will see that work accelerating into this year. For us, we have just as much opportunity to supply the data centers as we do to support the infrastructure surrounding them. In 2026, we expect the commercial market to pick up as interest rates continue to move lower and as customers accelerate their investments in advanced manufacturing, warehousing, and logistics. In infrastructure, demand continues to be steady with federal, state, and local authorities privatizing modernization projects. You see increasingly domestic-focused agendas Each country is prioritizing national investments to build strong futures. With the residential, new construction remains soft. We expect demand to gradually return later this year. As the U.S. continues to have a significant housing shortage, that will drive longer down-growth. As interest rates continue to decline, we expect end-up demand and construction activity to accelerate across all sectors. If we turn to slide seven, you can see our strong pipeline of key projects into 2026, which are directly aligned to these growth trends. We are supplying advanced building materials to new data center campuses like Louisiana, We're supplying water infrastructure projects like in Dallas, airport modernizations like in Colorado, and a new Amazon distribution facility in New York City. We are seeing increasing demand for our high-performance Elevate Max PVC roofing systems and are supporting a new industrial warehouse in Ontario and a significant data center project in North Dakota. see increasing data center demand for the max pvc roofing system going forward these are just a few of our project highlights and they reflect the mega trends underpinning long-term growth in the north american market as we move into 2026 we have a big pipeline of projects and new ones are kicking off every month We move to slide eight. You can see some of our important expansion projects. We completed our Syngent plant expansion to support growing demand and increase our efficiency. In December, we commissioned the production expansion of our flagship cement plant in Missouri, adding 660,000 tons and increasing the plant's total capacity to 5.5 million tons annually. Our Syngem plant is North America's largest market leading plant, setting the standard for high performance. If you turn to slide nine, you can see that we are on track with key organic growth projects for this year and beyond. So building on the success of our growth projects for 2026 and beyond. To serve the booming Texas region, we are investing in our Midlothian cement plant to expand production capacity by 100,000 tons, modernize logistics, and increase operational efficiency at the same time. In Alberta, Canada, we are investing in our capacity, supporting the growing Calgary market. In Quebec, we are investing to expand our Saint Constance cement plant by 300,000 tons and further strengthening our position in Canada and increasing efficiency of these facilities. If we turn to slide 10 now, you see more growth projects, with our new fly ash facility to enable the use of recycled landfill as a high quality supplementary material. We are progressing with our greenfield aggregates quarry in Oklahoma, adding about 200 million tons of reserves to serve the fast-growing Dallas-Fort Worth market. On the building envelope side, we are progressing with our new to expand our market share to the attractive Midwest and Eastern markets. We expect this plan to be commissioned at the end of 2026, putting us in a strong position to deliver more volumes for when residential demand picks up. We move to slide 11. Let me talk about our latest acquisition, PP Materials, which strengthens our aggregates footprint in West Texas. We announced the acquisition earlier this year. This will strengthen our aggregates business, add over $180 million in annual revenue, adding 50 years of aggregates reserves and 26 operational sites in West Texas to serve long-term demand as infrastructure, data centers, and commercial investments drive construction growth. This acquisition will be EPS and cash accretive already this year. We just received antitrust clearance from the Federal Trade Commission and now expect this acquisition to close in the first quarter of 2026. Looking beyond PV materials, we have a strong M&A pipeline and plan to continue making smart deals to accelerate our profitable growth. Let us move to slide 12, our Aspire program, which is on track to drive value through scale and focus. We made good progress here in the fourth quarter. We have now onboarded over 450 new logistics and service providers to optimize third-party spend, and we launched more than 400 projects to leverage our scale and drive synergies across raw materials, services, logistics, and equipment. We started realizing savings in the fourth quarter last year, and we are now targeting a 70 basis points of margin expansion in 2046 and $250 million of full synergies by 2048. Let us talk about allocating capital. On slide 13, you see our priorities, increasing investments and returning cash to shareholders. We are committed to a capital allocation strategy that invests for growth and delivers value to our shareholders. We raised our CapEx investments last year by 23%, and this year we plan to increase our investments further to $900 million. We are on track with our M&A strategy and we have a strong pipeline of targets led by aggregates and with additional opportunities in building and building. But strong cash conversion and balance sheet allows us to also return cash to our shareholders. The board has just approved a $1 billion share repurchase and is proposing a special one-time dividend of 44 cents per share payable following the AGM in April. The Board also proposing an annual ordinary dividend of 44 cents per share to be paid in quarterly installments. Both dividends will be paid out of legal capital reserves and are not subject to Swiss withholding tax. I'm very pleased to have established a strong balance sheet and platform for growth that enables us to return value to our shareholders while further increasing our growth investments through CapEx and M&A. Before discussing our guidance for this year in more detail, I turn over to Ian, and he gives us more details on our financial results.