Commercial construction and infrastructure activity helped offset softer residential demand in late 2025, as Amrize reported mixed fourth-quarter results in its Building Envelope segment.

Building Envelope revenue declined 11.8% year over year to $678 million, while adjusted EBITDA fell 23.5% to $130 million. The company said results were affected by weaker residential activity and an $8 million increase in warranty provisions.

On the earnings call, CFO Ian Johnston said the decline was “largely due to softer residential demand and an $8 million increase in warranty provisions to reflect claims activity in our residential business.”

Despite the residential slowdown, commercial repair and refurbishment activity remained resilient, supporting margins during the quarter. Company executives said they expect that strength to continue into 2026, projecting low-single-digit volume growth in commercial markets driven by steady repair, replacement and ongoing project activity.

“In residential, we expect flat volumes over the year, with the second half being better than the first,” said Chairman and CEO Jan Jenisch. “We continue to see pressure on residential demand from higher interest rates and affordability concerns.”

For walls and ceilings contractors, the more encouraging signals came from the company’s broader commercial and infrastructure exposure. Amrize reported fourth-quarter Building Materials revenue growth of 3.9%, driven by a 3.6% increase in cement volumes and a 3.8% rise in aggregates pricing. Executives cited strong demand from data centers, logistics facilities, manufacturing projects and public infrastructure work.

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“When you look at the guidance for 2026, I’m confident this will be a year of accelerating demand from our customers,” Jenisch said, pointing to improving commercial trends and continued infrastructure investment.

For the full year, Amrize reported $11.8 billion in revenue and $3.0 billion in adjusted EBITDA. The company ended 2025 with a net leverage ratio of 1.1x and plans to increase capital expenditures to $900 million in 2026, supporting capacity expansions and organic growth initiatives.

Amrize also announced an agreement to acquire West Texas aggregates producer PB Materials, authorized a $1 billion share repurchase program, and proposed both a special one-time dividend and an annual dividend.

2026 Outlook

Looking ahead, Amrize expects continued strength in commercial construction, particularly in projects tied to data centers, logistics and manufacturing facilities. Infrastructure modernization at the federal, state and local levels is also expected to remain a key demand driver.

Residential markets are projected to remain soft overall in 2026, with potential improvement in the second half of the year if interest rates decline. “So far in the first quarter, customer demand has improved compared to Q4,” Johnston said, though executives cautioned that any recovery in new residential construction is likely to be gradual.

Amrize completed its spin-off from Swiss building materials company Holcim in June 2025 and now trades on the New York Stock Exchange and the SIX Swiss Exchange under the ticker AMRZ.