Amrize: Structural Demand Tailwinds And A Clear Path To Higher Margins
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Sander Heio163 FollowersFollow5ShareSavePlay(13min)CommentsSummaryAmrize is a pure play on North American construction, with exposure to infrastructure, energy, data centers, and housing, offering focused demand without global FX or geopolitical risk.While recent performance has been muted by higher costs and a temporary cement outage, gross margins have steadily improved, highlighting pricing power and long-term efficiency gains.Building Envelope is delivering strong margin expansion, while Building Materials is positioned to recover as cement costs normalize and new, efficient capacity comes online.Rising capex reflects a strategic shift toward high-return projects, adding cement capacity, extending aggregate reserves, and supporting future demand from AI and energy projects.With ASPIRE targeting $250m in synergies, ~11% EPS growth expected through 2030, and valuation below upside scenarios, Amrize offers an attractive risk-reward setup. Justin Paget/DigitalVision via Getty Images Introduction Since Amrize AG (AMRZ) listed back in June, their performance has been rather flat, only up 8% since inception. Amrize is a North American construction pure-play, which makes Amrize especially interesting. Amrize has exposure to infrastructure, energy, and data centers. InThis article was written bySander Heio163 FollowersFollowHi, my name is Sander Pettersen Heio, and I’m based in Norway. My investment focus spans small-cap to mid-cap companies and foreign equities, with a particular emphasis on the Nordic market. I analyze businesses across diverse industries, identifying both established players and emerging growth leaders. Beyond Nordic stocks, I also cover U.S. growth companies, delivering in-depth research on firms with strong potential for long-term expansion.Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMRZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsHow have Amrize AG's gross margins trended and what does this imply?Gross margins improved from 22.4% in 2021 to 25.8% TTM, suggesting effective cost reduction and pricing strategies despite challenging markets.What is the recent trajectory of Amrize AG's revenue and net income?Revenue grew a modest 1.4% in the last nine months, but net income declined significantly, highlighting ongoing profitability challenges.How has Amrize AG's capital expenditure evolved relative to sales?Capex as a percentage of sales increased from 4.8% in 2021 to 6.0% TTM, signaling continued investment amid margin and growth pressures.Recommended For You