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.

Thank you, Jan. I'll begin on slide 15 with our results by segment, starting with building materials. For strong volume and revenue performance in Q3, we saw continued momentum and margin expansion in our building materials segment during the fourth quarter as new infrastructure and data centers and commercial projects broke ground. driven primarily by higher volumes across both our cement and aggregates businesses, combined with continued aggregates pricing growth. Cement volumes increased 3.6% and aggregates grew 3%. We continue to see steady support from federal, state, and local infrastructure spending, as well as growth in select commercial markets, particularly in data centers and warehousing and logistics, which we expect to continue in 2026. while full year 2025 was up 30 basis points on a constant currency basis. As we mentioned last quarter, we have announced price increases in 2026 in our markets, driven by the positive volume trend we have seen across our cement business over the last two quarters and into the new year. Pricing has been phasing in since the start of the year, with full run rate in place assumed by April 1st. As a reminder, our markets are driven by local demand, varying by geographic region. That said, we continue to see favorable pricing dynamics across our network, supported by our in-land positions and high-growth attractive markets. Meanwhile, aggregate pricing on a freight-adjusted constant currency basis increased 3.8% in the quarter. Including freight, pricing was up 7.3%. construction commission building materials adjusted eva down was 705 million dollars in the fourth quarter up 4.9 percent compared to the prior year while adjusted eva down margin was 32.6 percent 60 basis points the increase in adjusted eva down was primarily due to volume growth aggregates pricing production efficiency and early escalator savings moving forward we single digits and aggregates pricing to be up mid-single digits on a freight-adjusted basis in 2026. Given the positive customer demand we see across these businesses, we expect volumes for both cement and aggregates to be positive this year. Before we move to building envelope results, it's worth noting that the first quarter is typically a seasonally slower quarter for building materials as we perform annual maintenance and build inventory ahead of the peak selling season. Moving to slide 16, turning to the building envelope, fourth quarter results were $678 million, a decrease of 11.8% compared to the prior year. The decline was largely driven by softer residential roofing demand. That said, when we look across our business, commercial re-roofing activity remains strong with revenues up during the quarter as this type of spend is often non-discretionary for our customers. In commercial new construction, we continue to see robust data center demand. As Jan mentioned earlier, our MaxPVC product line at Elevate is addressing the higher performance specifications that many of our data center customers require. So far, we've been pleased with the traction and expect this product will continue driving growth for us in the future. Meanwhile, we have also started commercial new construction. Pulling envelope adjusted EBITDA was down year over year, largely due to softer residential roofing demand and an $8 million increase in warranty provisions to reflect claims and activity in our residential roofing business. We continue to see pressure on residential demand from higher interest rates and affordability concerns. These headwinds were partially offset by an increase Coming into 2026, we are focused on what we can control. We launched Aspire to improve our third-party cost base through significant progress and expect additional savings to materialize in 2026. While residential demand remains soft, we expect strong demand for commercial apartments. As a result, we expect low single-digit volume growth in commercial roofing. In residential, we expect flat volumes for the year, the second half being better than the first half. So far, Q1 customer demand has improved compared to Q4. Looking out further, we continue to see a long tailwind of growth in commercial R&R activity driven by an aging commercial roofing stock that needs to be replaced. We are also encouraged to address affordability, which can support new construction and help bridge the housing gap. And as I mentioned earlier, our focus is on operations and efficiently running the business through different economic environments. We continue to see a path towards best-in-class EBITDA margins. Moving to slide 17, we had a strong cash flow performance during the year. generated approximately $1.5 billion, representing a 49% cash conversion rate on adjusted EBITDA. This is in line with our historical average cash conversion of approximately 50%. 2025 free cash flow was lower due to net income and increased organic capex growth. Free cash flow is a key performance indicator for all of the P&L leader of our work in capital management and resilient underlying cash generation of our business. Moving to slide 18, we are very pleased with the progress we made post-spin to further strengthen our financial position during our first year as Amron's. At the end of the year, our net leverage ratio was 1.1 times, delivering on our commitment of less than 1.5 times a year. Net debt at the end of the year was approximately $3.3 billion, down over $1.5 billion from the end of the third quarter as we generated strong cash flow at the end of the year. Turning to slide 19, in 2025, we established a solid foundation low leverage ratio, providing us with ample firepower to accelerate growth this year. We are also effectively managing our interest expense and expect run rate to come down in 2026 compared to 2025 as we continue to optimize our capital structure. We expect our effective tax rate to stabilize in the range of 21% to 23%. to step down from 2025. This efficient capital structure and operating model allows us to continue generating significant cash in 2026 and drive profitability. This model also lays the foundation for our capital publication strategy, putting us in an excellent position to announce our shareholder return plan, all while continuing to invest in organic growth projects and pursue value-accredited M&A. This speaks to our financial to cover our 2026.

Thank you, Ian. When we look at the guidance for 2026, I'm confident that this will be the year of accelerating demand from our customers. The commercial market will continue its improving trends as lower interest rates support new products, adding to already strong demand for data centers, but also for other projects in logistics and manufacturing facilities where we have a lot of sideline projects. We have a good demand here, which will unfold throughout this year. In infrastructure, the demand will continue to be strong as governments prioritize modernization. Only in the residential market, we will remain soft with improvements rather towards the end of the year. We expect pricing and volumes in building materials to be key growth contributors in 2026. Cement pricing is expected to increase low single digit percentage range, while aggregates pricing is expected to increase mid single digit percentage range. The market trends and increasing customer demand will drive volume growth of cement and aggregates. Building envelope, we expect low single-digit growth in commercial roofing volumes, while we see flat volumes in residential roofing with demand improving in the second half of the year. Very important for us, the Aspire program is a key priority and will deliver significant results in 2026. We are now targeting a margin expansion of 70 basis points and are on track with our goal of $250 million in synergies through 2028. Based on this momentum from our customers to all the programs under our control, we have set our 2026 guidelines or guidance with 4% to 6% revenue growth and an 8 to 11% EBITDA growth. Both numbers includes the contribution from our recent PP materials acquisition. With that, I now pass back to Arun to open up our question and answer session.

Thank you, Jan, operator. We're now ready to begin the question and answer session.

Thank you. At this time, if you would like to ask a question, please use the raise hand button which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk and then you will hear your name called. Please accept, unmute your audio and ask your question. If you are dialing in via telephone, please use star nine to raise your hand and star six to unmute. As a reminder, we will allow analyst one question today. We will wait one moment to allow the queue to form. Our first question is from Adrian Huerta from JP Morgan. Please unmute your line and ask your question.

Thank you. Can you hear me? Sure. Hi, Johnny and Arun. Thank you for taking my question. And congrats on the results. My question has to do with the cement prices. I want to understand a little bit better why this confidence on getting a low single-git price increase for the year. I mean, just from comments from other companies, it seems like a fraction on price increases at the beginning of the year is not going as expected. What are you seeing on your own markets, and where do you see better price interaction, and where do you think it might be a bit more difficult to get the increases that you're looking for?

Yes, good morning. No, look, we are confident, and we're going to see a price increase for our MRIs products this year. I think we make good progress in this, and we have – I have nothing negative for you to report here.

And if I may ask just a follow-up question, again, thank you for that. On the Aspire program, good to see a larger target on savings this year than the run rate of 50 basis points, now with a target of 70 basis points. Any more color on where these savings, which should be for somewhere around $100 million, between SG&A or by segment within envelope or materials? Where are most of these savings coming from?

Oh, great. A good question. Look, I mean, I'm very excited. As you know, we have over $7 billion of costs for third party, and we haven't done really the synergies. So we have doubled the company. in the past few years from 6 to 12 billion dollars and we have not really run that Synergy program. So very exciting now to have savings. Of course we have it in logistics, we have it in raw materials and we have a lot of services which are provided to us for maintenance, for equipments and other things. So we make great progress. You can see already in the fourth quarter results in building materials that we have quite a significant impact from the Aspire program. And this is just the start. So we are very confident to see a significant contribution this year from Aspire. And that's why I also guide this to be fully margin and creative. Great. Thank you, John. Appreciate it. Thank you.

Thank you. Our next question is from Anthony Pettinari from Citigroup. Please unmute your line and ask your question.

Hi, this is Asher Sonnen on for Anthony. Thanks for taking my question. In just terms of, you know, comparing and contrasting the way you're looking at 2026 versus maybe how you were thinking three months ago, what are you seeing in terms of project backlogs, cancellations, etc.? ? And then on top of that, your positive volume growth outlook for 26, how does that break out between your different end markets, between commercial, infrastructure, and residential?

Look, I'm very happy how things are accelerating with all our customers. You have to see that the strongest market segment in last year was infrastructure, where we have these programs running and we are very happy to supply a lot of those projects. However, at MRISE, we do 50% of sales, we do with our commercial customers and that's really key in that market. has really picked up from mid last year and you can see it from some indexes like docs where we have an increasing number of starting projects and we can literally see our customers. They have a backlog of projects not only for data centers, but for logistics, for infrastructure, around logistics centers, for manufacturing facilities, and this will unfold. We have no canceled projects, a lot of sidelined and slowed down, and now we see that coming. The two cuts in interest rates has helped a lot. Most people always speak about the mortgage rates and the interest cuts, but actually, And we will see an accelerating demand and number of projects for our commercial customers.

Thank you. Our next question is from Trey Grooms from Stevens. Please unmute your line and ask your question. Trey Grooms from Stevens, if you could please unmute your line and go ahead with your question.

got it can you hear me now please go ahead okay thank you uh sorry for that uh yeah just on the acquisition maybe if we could touch on that uh pb materials um aggregates led business uh with with some ready mix it's included i believe it's included in the uh in the full year guide um it's doing 180 million in annual revenue any other details maybe you could give us there around pb you know the um I understand it's in West Texas and geographically where it stands. But anything around maybe the annual production or tonnage or how much it's adding to the overall volume being positive this year in aggregates? Any other details that maybe you could give us?

Thank you. No, thank you. Great question. And, look, we have a great slide on this, slide 11. And I think what's key here for me is, first of all, the size of the acquisition, over $180 million. We're going to close that very soon now in Q1. So very excited now when the season really starts that we have this business with us. It's already a very well-margined business. which has now significant synergies. I like that we bought a little map there where you can see how well that fits with our footprint in Texas, especially also our cement terminals and how we service all those operating sites and 13 are quarries and another 13 are ready mix sites. So it's a well-balanced business and they are the market leader around 30% of market share. So I'm very happy we can onboard now them with our very successful business in Texas.

Thank you. Our next question is from Brian Blair from Oppenheimer. Please unmute your line and ask your question.

Thank you. Good morning, everyone. You offered pretty good color on the visibility in commercial and infrastructure project outlook. I was hoping we could drill down a little bit on the residential side. And we know that there's weakness anticipated and understandably so over the near term, looking to the back after some degree of recovery against relatively weak comps. if we look at the low versus high end of your guidance, are you willing to quantify what is baked in specific to residential market activity?

I wish I could share with you, but I think what's exciting about residential, while it's only around 20% of our business, 50% of that is repair and refurbishment. And this gives us this resilient demand from the residential customers. And that was slowed down last year. You know, we had much less storm impacts like we had in years before. But this has really slowed us down, especially in Q4. But we believe this will normalize this year again. So to the question, I'm quite confident that repair and refurbishment, we will see significant growth for us in 0.26. New residentials, towards the end of the year, or let's say the start of recovery. But in our numbers, we're not planning for any growth in new construction residential, but very confident about repair and refurbishment.

Our next question comes from Pujerini Gosch from Zernstein. Please come meet your line and ask your question.

Hi, thanks for taking my question. One follow up on the guidance. Please can you confirm that you have not made any future potential acquisitions in the revenue and EBITDA growth guidance for 2026? And could you give some color around the cap expense that you are going to do in 2026 and how much new capacity addition in terms of the overall portfolio does these new projects bring in?

No, hey, good morning. Thank you for the question. So the guidance of 4% to 6% revenue growth and 8% to 11% EBTA growth is organic, including the PP materials acquisition. We are very confident about these numbers. You have to see we have now this accelerating demand from our customers and our order books, which are, on a good level. And then we have a lot of self-help. So when we see the pricing this year, we have the Aspire program and we have the first impact of our new growth CapEx programs. Very excited to start to run our flagship cement plant in South Africa. which is maintenance topics and growth topics. But you can see as we come somewhere from below $600 million to $900 million this year, you see already that we are more than doubling our growth topics. And this is a good thing. We have a lot of low-hanging fruits to de-bottleneck, to expand in new markets. Is it the new plant of Malaki to enter the eastern markets, or is it neutral? excited to de-bottleneck some of our best performing cement plants to increase the volumes, but also to further improve the efficiencies.

Thank you. Our next question is from Yasin Touari from On Field Research. Please unmute your line and ask your question.

Yes, good morning. Thank you very much for taking my question. Just one question. Regarding your building envelope business, we see that QXO has acquired Beacon and is aiming to substantially increase its margin and also double its VDA. And I think one of the levers is to work on changing the relationship with roofing product suppliers, including Amize. Could you give us some color on what has happened over the past year in terms of your relationship and what has been the impact of this development so far on your commercial strategy and potentially even your overall strategy as a group?

Look, we are partnering with the distributors in roofing, and they're very good companies. The company you mentioned, there are another two big nationwide roofing distributors, and then there are many local businesses in roofing distribution. I think what is important for us is that we are not focused focusing on the distributor itself. We are focusing on the end customer. So we have the ambition to build the best roofs. So all what we do is we focus on innovation, providing the best systems, brand everything. We are offering the training for the roofing contractor. We are offering the warranty. We are offering the roofing inspection. So when you look at our business, the distributor has an important function to make sure on the construction side, but beyond that we just focus on the And I think we do about 30% of the roofing business is direct, about 70% goes to distribution. So I have nothing to report here. I know there are some distributors, I like to talk a lot about their future, but I can just tell you, we partner with all of them and we make decisions who is our partner in a certain geographic market. So I think we're in a very good spot here to further increase

thank you our next question is from arnold lehman from bank of america please unmute your line and ask your question

Thank you very much. My question is regarding your Q4 free cash flow generation. Very impressive, around $1.7 billion, I believe. Is it the normal inflow in your view, considering seasonality? Or were there any specific effects related to the merger or to accounting that we need to consider?

No, I think it's nothing special. I think we have, I mean, our cash flow conversion from EBTA is around 50%. This is what we also target for the future. So I'm very happy in this first year of MRIs. You know, we just started the company in June last year. So we're very happy that we were able to deliver. Also considering our significant increase in topic spend, very happy. us such strong capital. So you, I think, should expect from us that this will continue in the years to come.

Thank you. Our next question is from Julia Radlinger from UBS. Please unmute your line and ask your question.

Hey, thanks very much, guys. Yeah, I'm Ian Arun. Any color you can give investors in building envelope earnings in 2026? I know you're guiding to overall positive volumes commercial up a little bit um resi more flat but what about margins if resi roofing volumes are as you expect and commercial as well should we expect building envelope ebitda to be up as well in 2026 yeah i mean look when you look at our guidance that we want to grow the ebta 8 to 11 percent this year you can imagine that this is true for both segments

for building materials and for building envelope. And we have strong programs in place, also with Aspire to increase our efficiencies in building envelope as well. We have pricing in place, and our target is to increase price over cost in building envelope in 2026.

Thank you. Our next question is from Tom Sang from Barclays. Please unmute your line and ask your question.

Yeah, hi, thanks for taking your questions. Could you maybe just elaborate a little bit on you know, the volume in materials. I think you said volume will be a growth contributor for the materials business, both cement and aggregates. Is that a sort of low single digit, mid single digit number? And is that, you know, is that predominantly driven by the self-help and organic growth that you have as you ramp St. Gen? Or do you think that's more a sort of market growth number? And I guess maybe just to cite you linked to that, can you talk a little bit about how you plan to approach the St. Gen ramp up Obviously, you know, it sounds like commercial and infant demand is okay, resi a little bit weaker, but it's still a decent amount of capacity to try and bring to the market. If you can just talk about the strategy of how you'll introduce those volumes. Thank you.

I think it's important if you run NRISE and you guide the year and you give your targets to the sales force, to all the people responsible. I very much like to focus on ourselves. I don't make a big market prediction. So like the Syngenic expansion is based on our customers demanding the product. And this is how we work. And this is why we come up and we believe our volumes will increase in 2026. And this is all I can say at this point. We make this all for the customers, and we have good order books. And, again, nothing negative to report here.

Thank you. As a reminder, if you would like to ask a question, please use the raise hand button, which can be found on the black bar at the bottom of your Zoom screen. And when it's your turn, you'll receive a message to ask your question. If you are dialed in by phone, please use star nine to raise your hand and star six to unmute. Our next question is from Carlos Cabarazzi from Kepler Shiver. If you'd like to unmute your line and please ask your question.

Hi, everyone. Thank you for the presentation. I will continue my questions. Just wondering on CapEx if you could give us some color regarding the expected investments during the rest of the decade. I'm just wondering if we should expect a further acceleration from the 900 in 2026, or is it going to be kind of flat or a front-loaded performance that will normalize as we get closer to 2030? Thank you.

I'm very happy to invest in the business. So I was happy that we have the opportunity, a lot of low-hanging fruits on the CapEx side, and we're doing all the good projects. So that adds up to around 900 million CapEx spent this year. I think this is already a significant increase, especially when you focus on the growth CapEx. This means we more than doubled the growth CapEx. I think this is in a good spot. And then we will take it from here. Those projects we also introduce here. I think we have two slides on like six of the most important projects for us. And that also keeps us busy because you not only have to execute this and commission the plan or whatever the CapEx is about, you also have to commercialize the volume. So I think we are on a great track to fully support our growth and vision for 2026, and then we will see later this year what the context is for the years to come. But I think $900 million is a good number for us.

Thank you. Our next question is from Keith Hughes from Tourist. Please unmute your line and ask your question. Please press star six to open your line. We've got you. Thank you.

There we go. Thank you. Yeah, a question on pricing on the roofing markets. Can you talk about in fourth quarter what pricing was like in residential and commercial and what you're expecting in your guidance for calendar 26 on pricing?

For us in roofing, it's a bit of an ambience demand. We like to talk straightforward about price. In roofing, it's a bit different. We like to talk about priceable. Commercial roofing margins, they increased. So we had a positive price over cost in commercial roofing. And we had quite a disruption in the residential market, which I think will be fully stabilized already in the first months of this year. But nevertheless, there was quite a big disruption you saw in the fourth quarter and also maybe a bit softer price. faster really this year. So for the full year, I mentioned this before, we are targeting a positive price over cost growth in the building and real estate. Thank you.

We have no further questions at this time. I will now turn the call back over to Arun Amanani for closing remarks.

Thank you, Operator. Thank you all for joining us for our fourth quarter of the full year 25. also in the coming months. Thanks, everybody.

This concludes the MRI's Q4 2025 earnings conference call. You may now disconnect.