Amrize Ltd Ordinary Shares

Hello, and welcome to the Amrise Q1 2026 earnings conference call. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll 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 Amarnani, Vice President of Investor Relations.

Thank you and good morning. Welcome to Amarize's first quarter 2026 earnings conference call. We released our first quarter 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 Baris Oran, our CFO. Jan will open today's call with highlights from the first quarter. Baris will then review our financial performance 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 U.S. GAAP in our earnings release and slide presentation. As a reminder, today's call is being webcast live and recorded. A transcript and any recording of this conference call will be posted to our website. Any statements made about future results and performance, plans, expectations, and objectives are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those presented during the call due to various factors, including but not limited to those discussed in our 2025 Form 10-K and in other reports filed with the SEC. The company undertakes no obligation to publicly update or revise any forward-looking statements. With that, I'll now turn the call over to Jan.

Thank you, Arun, and thank you all for joining us today. We had a strong start to the year. While this is a seasonally small quarter for MRIs, we are encouraged by our progress and the acceleration of customer demand driven by our building materials segment. For the first quarter, MRIs delivered revenue growth of 4.7%. We had an excellent start in Q1 for building materials. With growing new project starts and multi-year supply agreements for mega projects, we achieved double digit volume growth in both cement and aggregates and increased revenues by 12.9% to $1.5 billion. We also grew building materials adjusted EBITDA by 42% and expanded margin by 230 basis points. This was driven by accelerating growth in volumes, continued aggregates pricing, operational efficiency, and gains from our Aspire program. With aggregates in U.S. cement price increases put in place in April and strong volumes continuing, our building materials business is well positioned for 2026. In our building envelope segment, revenue was affected by softer roofing demand and pricing. Adjusted EBITDA was impacted by lower volumes, price cost, and temporary plant disruption. Commercial roofing repair and refurbishment remained resilient while new construction remained soft in the first quarter. We expect the strong commercial new starts we are seeing within building materials to convert to new roofing demand as those projects progress through construction. We implemented price increases beginning in April and we expect price costs to improve as we move through the year. At the total company level, we grew revenues by 4.7% to $2.2 billion with $192 million in adjusted EBITDA. We operated on a standalone basis in the first quarter of 2026 compared to a carve-out basis in the first quarter of 2025. Excluding the unallocated corporate costs, our total adjusted EBITDA was up 1.6% in the first quarter of 2026. For future growth, we are investing in our operations and executing value-accretive M&A. We invested $272 million in capital expenditures and are on track to invest $900 million in 2026 to expand production, increase operational efficiency, and best serve customers in the most attractive markets. We also completed the acquisition of PB Materials on February 18. This was a great acquisition and PB Materials already started to positively contribute to our results in the first quarter. Delivering shareholder return, our board has declared MRI's first quarterly dividend of 11 cents per share and we plan to begin our share repurchase program after Q1 earnings results. Overall, we are off to a good start to the year and are well positioned to deliver on our 2026 guidance. Looking to the market environment, we are seeing accelerating customer demand in commercial construction, which makes up half of our business. Strong data center demand and energy projects are accelerating growth. We also saw an increase in new project starts in the quarter and were able to secure multi-year supply agreements supporting several megaprojects. Within infrastructure, we expect steady spending on the federal, state, and local level with ongoing modernization of North America's aging infrastructure. We see increasingly domestic-focused agendas in both the United States and Canada. Each country is prioritizing national investments to build strong futures, and AMRISE is positioned exceptionally well for this. Within residential, new construction and repair and refurbishment demand remained soft in the first quarter. We expect that seasonal trends will support weather-related demand in the second half of the year with new construction recovery expected in 2027. Overall, we are seeing growth trends from infrastructure modernization and onshoring of manufacturing to data center expansion and the digital economy taking shape on the ground. And these projects have significant size and scale for MRes. Let me share some of our project highlights as we see increased new starts and mega projects. In Colorado, we are a key supplier of building materials for the highest dam race in the US, which will triple capacity to reliably serve water supply to Denver. In New York City, MRIs is delivering significant volumes of building materials to a major river ground stabilization program. We are a key supplier to projects supporting the digital economy, including an Amazon distribution facility in New York and multiple data centers, including two large new builds in Texas. Our elevated roofing system, which is ideally suited to support data center projects, is also serving other mega projects like Northwestern University's new Ryan Field, one of the nation's most significant new stadium builds. These are just some examples of our projects, and new ones are kicking off every month. While we support our customers, we are also driving synergies and operational excellence with our Aspire program. We continue to make good progress in the first quarter. We have now onboarded over 650 new logistics and service providers, optimizing our third-party spend. With our Aspire program, we are on track to achieve 70 basis points of margin expansion in 2026 and $250 million in synergies through 2028. Let's look at our capital allocation. We are executing on our capital allocation strategy for growth and shareholder return. We invested $272 million in capital expenditures in the first quarter and are on track to invest $900 million in 2026. We are progressing well on our key organic growth projects. This includes our flagship cement plant expansions in attractive markets from Texas to Calgary, investments to expand our quarries, and the build of our new Malarkey shingle plants in Indiana. A key highlight of the first quarter was the close of the acquisition of BB Materials, the aggregates leader in high-growth West Texas. This acquisition strengthens our aggregates business, adding 50 years of aggregate reserves and 26 operational sites throughout West Texas. With just six weeks as part of AMRISE in the first quarter, PP Materials has started to contribute to our revenues and we see significant growth and synergy opportunities ahead. We expect the acquisition of PV materials to be EPS and cash accretive in 2026. Following this acquisition, we have a strong pipeline of aggregates-led M&A opportunities to grow our footprint in the most attractive markets. We are delivering on our priority to return cash to our shareholders. The special one-time dividend for 2025 of 44 cents per share will be paid on May 4th to shareholders. In addition, the MRI's board has declared the first quarterly dividend of 11 cents per share to be paid on May 20th. Both dividends will be paid out of capital contribution reserves and are not subject to Swiss withholding tax. The previously announced $1 billion share repurchase program with a 12-month authorization is planned to begin after Q1 earnings results. We continue to focus on delivering for our customers, investing for growth, and returning cash to our shareholders. Before discussing our 2026 guidance, I will turn over to Baris, who will review our quarterly financial results in more detail.