Amrize Ltd
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
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Item 1. Financial Statements
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues | $3,675 | $3,446 | $8,976 | $8,855 |
| Cost of revenues | (2,589) | (2,404) | (6,702) | (6,562) |
| Gross profit | 1,086 | 1,042 | 2,274 | 2,293 |
| Selling, general and administrative expenses | (312) | (241) | (850) | (682) |
| Gain on disposal of long-lived assets | 4 | 43 | 9 | 49 |
| Loss on impairments | — | — | (2) | (2) |
| Operating income | 778 | 844 | 1,431 | 1,658 |
| Interest expense, net | (89) | (130) | (328) | (384) |
| Other non-operating (expense) income, net | — | (11) | 2 | (7) |
| Income before income tax expense and income from equity method investments | 689 | 703 | 1,105 | 1,267 |
| Income tax expense | (150) | (155) | (226) | (293) |
| Income from equity method investments | 4 | 4 | 5 | 7 |
| Net income | 543 | 552 | 884 | 981 |
| Net loss attributable to noncontrolling interests | 2 | 1 | 3 | 2 |
| Net income attributable to the Company | $545 | $553 | $887 | $983 |
| Earnings per share attributable to the Company: | ||||
| Basic | $0.99 | $1.00 | $1.60 | $1.78 |
| Diluted | $0.98 | $1.00 | $1.60 | $1.78 |
| Weighted-average number of shares outstanding: | ||||
| Basic | 553.1 | 553.1 | 553.1 | 553.1 |
| Diluted | 553.9 | 553.1 | 553.4 | 553.1 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Comprehensive income: | ||||
| Net income | $543 | $552 | $884 | $981 |
| Other comprehensive (loss) income, net of tax: | ||||
| Foreign currency translation | (80) | 70 | 158 | (83) |
| Net change in fair value of cash flow hedges, net of tax | — | (4) | 7 | 3 |
| Actuarial (losses) gains and prior service (costs) credits for defined benefit pension plans and other postretirement benefit plans, net of tax | 1 | (2) | (1) | (2) |
| Total other comprehensive (loss) income, net of tax | (79) | 64 | 164 | (82) |
| Total comprehensive income | $464 | $616 | $1,048 | $899 |
| Comprehensive loss attributable to noncontrolling interests | 2 | 1 | 3 | 2 |
| Comprehensive income attributable to the Company | $466 | $617 | $1,051 | $901 |
Condensed Consolidated Balance Sheets
(In millions, except share data)
| As of | As of | |
|---|---|---|
| September 30, 2025 | December 31, 2024 | |
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $826 | $1,585 |
| Accounts receivable, net | 2,046 | 1,011 |
| Due from related-party | — | 58 |
| Inventories | 1,511 | 1,452 |
| Related-party notes receivable | — | 532 |
| Prepaid expenses and other current assets | 186 | 143 |
| Total current assets | 4,569 | 4,781 |
| Property, plant and equipment, net | 7,837 | 7,534 |
| Goodwill | 8,993 | 8,917 |
| Intangible assets, net | 1,762 | 1,832 |
| Operating lease right-of-use assets, net | 617 | 547 |
| Other noncurrent assets | 257 | 194 |
| Total Assets | $24,035 | $23,805 |
| Liabilities and Equity | ||
| Current Liabilities: | ||
| Accounts payable | $1,322 | $1,285 |
| Short-term borrowings | 547 | — |
| Due to related-party | — | 89 |
| Current portion of long-term debt | 332 | 5 |
| Current portion of related-party notes payable | — | 129 |
| Operating lease liabilities | 129 | 149 |
| Other current liabilities | 822 | 893 |
| Total current liabilities | 3,152 | 2,550 |
| Long-term debt | 4,932 | 980 |
| Related-party notes payable | — | 7,518 |
| Deferred income tax liabilities | 946 | 936 |
| Noncurrent operating lease liabilities | 501 | 386 |
| Other noncurrent liabilities | 1,606 | 1,521 |
| Total Liabilities | 11,137 | 13,891 |
| Commitments and contingencies (see Note 17) | ||
| Equity: | ||
| Common stock, par value of $0.01 per share, 680,250,615 shares authorized, 566,875,513 shares issued and 553,082,069 shares outstanding as of September 30, 2025 | 6 | — |
| Additional paid-in capital | 12,734 | — |
| Retained earnings | 601 | — |
| Net parent investment | — | 10,521 |
| Treasury stock, 13,793,444 shares as of September 30, 2025 | — | — |
| Accumulated other comprehensive loss | (440) | (606) |
| Total Equity attributable to the Company | 12,901 | 9,915 |
| Noncontrolling interests | (3) | (1) |
| Total Equity | 12,898 | 9,914 |
| Total Liabilities and Equity | $24,035 | $23,805 |
Condensed Consolidated Statements of Cash Flows (Unaudited)
| For the nine months ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Cash flows from operating activities: | ||
| Net income | $884 | $981 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, depletion, accretion and amortization | 670 | 664 |
| Share-based compensation | 6 | 5 |
| Gain on disposal of long-lived assets | (9) | (18) |
| Gain on land expropriation | — | (31) |
| Deferred tax expense | 12 | — |
| Net periodic pension benefit cost | 8 | 21 |
| Other items, net | 77 | 85 |
| Changes in operating assets and liabilities, net of effects of acquisitions: | ||
| Accounts receivable, net | (1,004) | (569) |
| Due from related-party | 49 | (17) |
| Inventories | (24) | (161) |
| Accounts payable | 9 | (259) |
| Due to related-party | (82) | 40 |
| Other assets | (72) | (48) |
| Other liabilities | (102) | (88) |
| Defined benefit pension plans and other postretirement benefit plans | (18) | (50) |
| Net cash provided by operating activities | 404 | 555 |
| Cash flows from investing activities: | ||
| Purchases of property, plant and equipment | (631) | (558) |
| Acquisitions, net of cash acquired | (86) | (21) |
| Proceeds from disposals of long-lived assets | 12 | 33 |
| Proceeds from land expropriation | 20 | 32 |
| Proceeds from property and casualty insurance | 2 | — |
| Net decrease (increase) in short-term related-party notes receivable from cash pooling program | 522 | (326) |
| Other investing activities, net | (50) | (16) |
| Net cash used in investing activities | (211) | (856) |
| Cash flows from financing activities: | ||
| Transfers to Parent, net | (91) | (297) |
| Proceeds from short-term borrowings, net | 547 | — |
| Proceeds from issuance of long-term debt, net of discount | 3,395 | — |
| Payments of debt issuance costs | (24) | — |
| Net (repayments) proceeds of short-term related-party debt | (129) | (5) |
| Proceeds from debt-for-debt exchange with Parent | 922 | — |
| Proceeds from issuances of long-term related-party debt | 22 | 20 |
| Repayments of long-term related-party debt | (5,541) | (30) |
| Payments of finance lease obligations | (75) | (59) |
| Other financing activities, net | (4) | (3) |
| Net cash used in financing activities | (978) | (374) |
| Effect of exchange rate changes on cash and cash equivalents | 26 | (12) |
| Decrease in cash and cash equivalents | (759) | (687) |
| Cash and cash equivalents at the beginning of period | 1,585 | 1,107 |
| Cash and cash equivalents at the end of period | $826 | $420 |
Condensed Consolidated Statements of Equity (Unaudited)
| Common stock · Treasury stock | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Net parent investment | Accumulated other comprehensive loss | Equity attributable to noncontrolling interests | Total equity | |
| Balance as of June 30, 2025 | 567 | $6 | (14) | $— | $12,730 | $59 | $— | $(361) | $(1) | $12,433 |
| Net income (loss) | — | — | — | — | — | 545 | — | — | (2) | 543 |
| Other comprehensive loss, net of taxes | — | — | — | — | — | — | — | (79) | — | (79) |
| Share-based compensation expense and other | — | — | — | — | 4 | (3) | — | — | — | 1 |
| Balance as of September 30, 2025 | 567 | $6 | (14) | $— | $12,734 | $601 | $— | $(440) | $(3) | $12,898 |
| Common stock · Treasury stock | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Net parent investment | Accumulated other comprehensive loss | Equity attributable to noncontrolling interests | Total equity | |
| Balance as of June 30, 2024 | — | $— | — | $— | $— | $— | $9,772 | $(463) | $(1) | $9,308 |
| Net income (loss) | — | — | — | — | — | — | 553 | — | (1) | 552 |
| Other comprehensive income, net of taxes | — | — | — | — | — | — | — | 64 | — | 64 |
| Net transfers to Parent | — | — | — | — | — | — | (87) | — | — | (87) |
| Balance as of September 30, 2024 | — | $— | — | $— | $— | $— | $10,238 | $(399) | $(2) | $9,837 |
Condensed Consolidated Statements of Equity (Unaudited)
| Common stock · Treasury stock | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Net parent investment | Accumulated other comprehensive loss | Equity attributable to noncontrolling interests | Total equity | |
| Balance as of December 31, 2024 | — | $— | — | $— | $— | $— | $10,521 | $(606) | $(1) | $9,914 |
| Net income (loss) | — | — | — | — | — | 604 | 283 | — | (3) | 884 |
| Other comprehensive income, net of taxes | — | — | — | — | — | — | — | 164 | — | 164 |
| Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | (1) | — | 1 | — |
| Net transfers from Parent including Spin-off-related adjustments | — | — | — | — | — | — | 1,933 | 2 | — | 1,935 |
| Issuance of Common stock, Treasury stock and reclassification of Net parent investment | 567 | 6 | (14) | — | 12,730 | — | (12,736) | — | — | — |
| Share-based compensation expense and other | — | — | — | — | 4 | (3) | — | — | — | 1 |
| Balance as of September 30, 2025 | 567 | $6 | (14) | $— | $12,734 | $601 | $— | $(440) | $(3) | $12,898 |
| Common stock · Treasury stock | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Net parent investment | Accumulated other comprehensive loss | Equity attributable to noncontrolling interests | Total equity | |
| Balance as of December 31, 2023 | — | $— | — | $— | $— | $— | $9,520 | $(317) | $— | $9,203 |
| Net income (loss) | — | — | — | — | — | — | 983 | — | (2) | 981 |
| Other comprehensive loss, net of taxes | — | — | — | — | — | — | — | (82) | — | (82) |
| Net transfers to Parent | — | — | — | — | — | — | (265) | — | — | (265) |
| Balance as of September 30, 2024 | — | $— | — | $— | $— | $— | $10,238 | $(399) | $(2) | $9,837 |
Note 1. Organization and basis of presentation
Organization
Amrize Ltd (the “Company”) isa building solutions company focused exclusively on the North American
market, offering customers a broad range of advanced building solutions from foundation to rooftop. The Company
earns revenue from the sale of cement, aggregates, ready-mix concrete, asphalt, roofing systems and other building
solutions.
The Company is organized intotwo reportable segments — Building Materials and Building Envelope —
that are aligned with the products and services it provides and based upon the information used by thechief
operating decision maker (“CODM”) in evaluating the performance of the business and allocating resources and
capital.
Building Materials: The building materials segment offers a range of branded solutions delivering high-
quality products for a wide range of applications. These include cement and aggregates, as well as a
variety of downstream products and solutions such as ready-mix concrete, asphalt and other construction
materials.
Building Envelope: The building envelope segment offers advanced roofing and wall systems, including
single-ply membranes, insulation, shingles, sheathing, waterproofing and protective coatings, along with
adhesives, tapes and sealants that are critical to the application of roofing and wall systems.
On May 14, 2025, the holders of ordinary shares of Holcim Ltd (“Parent”) approved the Spin-off of the
Company (the “Spin-off”). On June 23, 2025 (the “Separation and Distribution Date”), Parent completed the
previously announced Spin-off through a distribution of 100% of the Company’s outstanding shares (the
“Distribution”) to holders of record of Parent’s ordinary shares, on a pro rata basis as a dividend-in-kind, as of the
close of business on June 20, 2025, which resulted in the issuance of 553,082,069 shares of common stock. This
amount is based on 566,875,513 Parent shares outstanding at the Separation and Distribution Date and 13,793,444
shares not distributed to Parent shareholders that are held by the Company as treasury stock. In connection with the
Distribution, the Company and Parent consummated a series of internal reorganization transactions resulting in the
Company becoming the holder, directly or through its subsidiaries, of the business, activities and operations of
Parent and its affiliates in the United States, Canada, Switzerland, and Jamaica, as well as certain support operations
in Colombia and certain trading operations. As a result of the Distribution, the Company became an independent
public company. The Company’s common stock is listed under the symbol “AMRZ” on the New York Stock
Exchange and the SIX Swiss Exchange.
Unless the context otherwise requires, references to “we,” “our,” “us,” and the “Company” refer to (i)
Amrize Ltd’s business prior to the Spin-off as a carve-out business of Parent and (ii) Amrize Ltd and its subsidiaries
following the Spin-off.
Basis of presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and
regulations of the United States Securities and Exchange Commission (“SEC”). While the unaudited condensed
consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management,
necessary for fair presentation of the results of the interim period, they do not include all of the disclosures provided
in annual financial statements. These unaudited condensed consolidated financial statements should be read in
conjunction with the Company’s historical combined financial statements and accompanying notes included within
the Company’s Form 10 filed with the SEC.
Prior to the Spin-off, the Company operated as a wholly-owned subsidiary of Parent and not as a standalone
company. These condensed consolidated financial statements and footnotes reflect the historical financial position,
results of operations and cash flows of the Company as historically managed within Parent for periods prior to the
completion of the Spin-off and reflect the financial position, results of operations and cash flows of the Company as
a standalone company for periods after the completion of the Spin-off. The historical condensed consolidated
financial statements and footnotes for periods prior to the completion of the Spin-off were prepared on a “carve-out”
basis in connection with the Spin-off, and were derived from the consolidated financial statements and historical
accounting records of Parent.
For periods prior to the Spin-off, the condensed consolidated balance sheet reflects all of the assets and
liabilities of Parent that are specifically identifiable or directly attributable to the Company, including Net parent
investment as a component of equity. Net parent investment represents Parent’s historical investment in the
Company and includes accumulated net income attributable to the Company and the net effect of transactions with
Parent and its subsidiaries. See Note 18 (Related party) for additional information. All intercompany balances and
transactions within the Company have been eliminated in these unaudited condensed consolidated financial
statements.
Prior to the Spin-off, the Company and Parent had intercompany activity resulting in revenues and
expenses for both parties. As described in Note 18 (Related party), certain related party transactions between the
Company and Parent have been included in these unaudited condensed consolidated financial statements. Pursuant
to the Spin-off, Parent ceased to be a related party to the Company and accordingly, no related party transactions or
balances have been reported subsequent to the Separation and Distribution Date.
Prior to the Spin-off, the unaudited condensed consolidated statements of operations included expense
allocations for certain corporate, infrastructure and other shared services provided by Parent on a centralized basis,
including but not limited to accounting and financial reporting, treasury, tax, legal, human resources, information
technology, insurance, employee benefits and other shared services that are either specifically identifiable or directly
attributable to the Company. These expenses had been allocated to the Company on the basis of direct usage when
specifically identifiable, with the remainder predominantly allocated on a pro rata basis using revenues. The
Company’s management considers this allocation to be a reasonable reflection of the utilization of services provided
or the benefit received by the Company during the periods presented. However, these expense allocations may not
be indicative of the actual expenses that would have been incurred had the Company been a standalone company
during the periods presented, and they may not reflect what the Company’s results of operations may be in the
future. See Note 18 (Related party) for additional information. Following the Spin-off, a limited number of services
that Parent provided to the Company prior to the Spin-off are continuing to be provided for a period of time under a
Transition Services Agreement. The Company is now incurring certain costs as a standalone public company,
including services provided by its own resources or through third-party service providers relating to corporate
functions, including executive leadership, accounting and financial reporting, treasury, compliance and regulatory,
human resources, information technology, marketing and communications, insurance, as well as ongoing additional
costs associated with operating as an independent, publicly-traded company.
Historically, Parent used a centralized approach to cash management and financing of operations. Prior to
the Spin-off, a majority of the Company’s subsidiaries participated in Parent’s centralized cash management and
financing function. While the Company maintained bank accounts in the name of its respective legal entities in order
to conduct day-to-day business, cash was managed centrally as part of the overall treasury function and Parent
oversaw a cash pooling program whereby cash was swept from any subsidiary accounts, including the Company’s
accounts, on a daily basis. As such, cash and cash equivalents held by Parent at the corporate level were not
specifically identifiable or directly attributable to the Company and, therefore, have not been reflected in these
unaudited condensed consolidated financial statements prior to the Spin-off. Rather, the Company’s residual cash
pooling balances as of the end of each reporting period prior to the Spin-off were recorded within Related-party
notes receivable. See Note 18 (Related party) for more information.
Further, prior to the Spin-off, Parent’s third-party debt and related interest expense was not attributed to the
Company because the Company was not considered the primary obligor of the debt, and the Company was not a
named guarantor or joint and severally liable for any of Parent’s third-party debt. Prior to the Spin-off, the Company
had related-party note agreements in place with Parent for the financing of its capital needs, which are reflected as
Related-party notes payable on thecondensed consolidated balance sheet as of December 31, 2024. As part of the
Spin-off, the Company issued senior unsecured notes and completed a bond exchange as described in Note 10
(Debt). A portion of the proceeds from the issuance of the senior unsecured notes and completion of the bond
exchange was used to repay the Company’s related-party indebtedness due to Parent. Parent also completed an
equity contribution to the Company to settle the remaining related-party indebtedness due to Parent as described in
Note 18 (Related party). Interest expense, net in the unaudited condensed consolidated statements of operations
reflects interest on borrowing and funding associated with the related-party note agreements for periods prior to the
Spin-off. Subsequent to the Spin-off, Interest expense, net in the unaudited condensed consolidated statements of
operations reflects interest expense primarily related to the newly issued senior unsecured notes, the notes obtained
in the bond exchange with Parent, the commercial paper program, and interest associated with other long-term debt.
See Note 10 (Debt) for further detail.
In connection with the Spin-off, the Company entered or adopted several agreements, including a
Separation and Distribution Agreement, Transition Services Agreement, and Tax Matters Agreement, among others,
that provide a framework for the post separation relationship between the Company and Parent. See Note 18
(Related party) for more information on these agreements.
Additionally, in relation to the Spin-off, Parent allocated$5 million of transaction costs to the Company for
thethree months ended September 30, 2024, and$11 million and$15 million for the nine months ended September
30, 2025 and 2024, respectively. These allocated transaction costs correspond to the costs incurred by the Parent that
are directly attributable to the Company, such as rebranding costs, employee-related costs (i.e. recruitment and
relocation expenses) and costs to establish certain standalone functions. These costs are recorded in Selling, general
and administrative expenses and are deemed to be settled in the period in which the costs are included in Net parent
investment on the condensed consolidated balance sheetfor periods prior to the Spin-off. The Company also directly
recorded certain non-recurring transaction costs related to the Spin-off. See Note 14 (Segment information) for detail
on total non-recurring Spin-off and separation-related costs.
Use of estimates
These unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP,
which requires management to make assumptions and estimates about future events and apply judgments that affect
the amounts of assets, liabilities, revenues and expenses reported on these unaudited condensed consolidated
financial statements and accompanying notes. The Company has continued to follow the accounting policies set
forth in the historical combined financial statements and accompanying notes included within the Company’s Form
10 filed with the SEC. Management’s assumptions, estimates and judgments are based on historical experience,
current trends and other factors that management believes to be reasonable under the circumstances.
On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to
ensure that these unaudited condensed consolidated financial statements are presented fairly and in accordance with
U.S. GAAP, and the Company revises its estimates, as appropriate, when events or changes in circumstances
indicate that revisions may be necessary. These unaudited condensed consolidated financial statements reflect, in the
opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to
fairly state, in all material respects, the financial position of the Company for the periods presented.
Significant accounting estimates reflected in these unaudited condensed consolidated financial statements
are used for, but are not limited to, accounting for the inventory excess and obsolescence reserves, revenue
recognition under the percentage of completion method, volume based rebates, contingent liabilities including
warranty, pension and other postretirement benefits, tax valuation allowances, uncertain tax positions, impairment of
goodwill and other intangible assets, asset retirement obligations, self-insurance reserves, litigation and other loss
contingencies, fair values of acquired assets and liabilities assumed under the acquisition method of accounting and
assumptions used for the allocation of general corporate expenses prior to the Spin-off. The Company also considers
the potential impacts of climate-related factors in developing the estimates and assumptions underlying the
accounting areas noted above.
Estimates and assumptions have been based on the available information and regulations in place as of
September 30, 2025. Although these assumptions and estimates are based on management’s knowledge of, and
experience with, past and current events, actual results could differ materially from these assumptions and estimates.
Fair value measurement
The carrying values of the Company’s Cash and cash equivalents and Short-term borrowings approximate
their fair values because of the short-term nature of these instruments. See Note 10 (Debt) for disclosures on the fair
value of Long-term debt.
Note 2. New accounting standards
Recently adopted accounting pronouncements
There were no material impacts from the adoption of new accounting standards for the nine months ended
September 30, 2025.
Recently issued accounting pronouncements not yet adopted
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740).
ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well
as additional information on income taxes paid. ASU 2023-09 is effective on a prospective basis for annual periods
beginning after December 15, 2024. The Company is currently evaluating the provisions of ASU 2023-09 and
expects to adopt the standard for the year ending December 31, 2025.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income -
Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Additionally, in
January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard is intended
to require more detailed disclosures about specified categories of expenses (including employee compensation,
depreciation and amortization) included in certain expense captions presented on the face of the statements of
operations. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15,
2026, and for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is
permitted. The amendments should be applied either prospectively to financial statements issued for reporting
periods after the effective date of ASU 2024-03 or retrospectively to any or all prior periods presented in the
financial statements. The Company is currently evaluating the new standard to determine the impact ASU 2024-03
may have on its financial statements and related disclosures, and expects to make additional disclosures upon
adoption.
Note 3. Revenues
The Company primarily earns revenue from the sale of Building Materials products and Building Envelope
products. Revenue is disaggregated by product line, which the Company believes best depicts how the nature,
amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
The following table disaggregates revenues by product line for each of the Company’s reportable segments:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Building Materials | ||||
| Cement | $1,374 | $1,332 | $3,292 | $3,404 |
| Aggregates and other construction materials | 1,567 | 1,398 | 3,474 | 3,305 |
| Interproduct revenues | (167) | (179) | (413) | (460) |
| Building Envelope | 901 | 895 | 2,623 | 2,606 |
| Total Revenues | $3,675 | $3,446 | $8,976 | $8,855 |
Contract assets include estimated earnings in excess of billings on uncompleted construction contracts. The
current portion of contract assets were$69 million,$30 million,$82 million and $24 million as of September 30,
2025, December 31, 2024, September 30, 2024 and December 31, 2023, respectively, and are included within
Prepaid expenses and other current assets on thecondensed consolidated balance sheets. The noncurrent portion of
contract assets were$68 million,$57 million,$32 million, and$32 million as of September 30, 2025, December 31,
2024, September 30, 2024 and December 31, 2023, respectively, and are included within Other noncurrent assets on
the condensed consolidated balance sheets.
Contract liabilities
Contract liabilities relate to payments received in advance of performance under a contract, primarily
related to extended service warranties in the Building Envelope segment. Contract liabilities are recognized as
revenue as (or when) the Company performs under the contract. Prior to the Spin-off, certain contract liability
balances were related-party in nature and are recorded in Due to related-party on the condensed consolidated balance
sheet as of December 31, 2024. The following table includes a summary of the change in contract liabilities:
| (In millions) | 2025 | 2024 |
|---|---|---|
| Balance as of January 1 | $408 | $316 |
| Revenue recognized | (66) | (37) |
| Revenue deferred | 44 | 68 |
| Balance as of September 30 | $386 | $347 |
The Company’s remaining performance obligations represent the transaction price allocated to performance
obligations that are unsatisfied or partially satisfied, consisting of deferred revenue. As of September 30, 2025, the
Company’s remaining performance obligations were$386 million. The Company expects to recognize$37 million
of the deferred revenue during the next twelve months, and the remaining$349 million thereafter.
Note 4. Acquisitions
The Company strategically acquires companies in order to increase its footprint and offer products that
diversify its existing offerings. Acquisitions of businesses are accounted for as business combinations using the
acquisition method in accordance with ASC Topic 805, Business Combinations. The results of acquired businesses
have been included in these unaudited condensed consolidated financial statements beginning on the acquisition
date.
The Company completed the following three acquisitions in the nine months ended September 30, 2025 for
total consideration of$98 million, net of cash acquired:
Northstar Concrete, a provider of ready-mix and concrete finishing solutions in Alberta, Canada (August
Langley Concrete, a provider of precast solutions and concrete pipes in British Columbia, Canada (May
Jamaica Aggregates Limited, an aggregates producer with sand and stone quarries in Jamaica, which is a
joint venture that was previously accounted for as an equity method investment (January 2025)
The operating results of these acquisitions are reported in the Building Materials segment. Pro forma
financial information reflecting the effects of the acquisition for the three and nine months ended September 30,
2025 are not presented, as none of these business combinations, individually or in the aggregate, are material to the
Company’s results of operations for the period.
The total consideration and the fair values of identifiable assets acquired and liabilities assumed, including
immaterial measurement period adjustments related to these acquisitions were as follows:
| (In millions) | Total 2025 Acquisitions |
|---|---|
| Total consideration | $98 |
| Total Assets and Liabilities Acquired | |
| Inventories, net | 23 |
| Property, plant and equipment, net | 43 |
| Intangible assets | 20 |
| Debt assumed | (3) |
| Net working capital | (2) |
| Total identifiable net assets at fair value | 81 |
| Goodwill | 17 |
| Total estimated fair value of net assets | 98 |
| Less: fair value of previously held equity method investment | (11) |
| Net consideration | $87 |
| Acquisitions of business, net of cash acquired | |
| Cash consideration | 87 |
| Less: cash and cash equivalents acquired | (1) |
| Total outflow in the statement of cash flows | $86 |
Note 5. Accounts receivable, net
Accounts receivable, net were as follows:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Trade receivables | $2,015 | $1,023 |
| Less: allowance for credit losses | (31) | (51) |
| Other current receivables, net | 62 | 39 |
| Accounts receivable, net | $2,046 | $1,011 |
The changes in the allowance for credit losses were as follows:
| (In millions) | 2025 | 2024 |
|---|---|---|
| Balance as of January 1 | $51 | $49 |
| Charge-offs | (11) | (1) |
| Provision for credit losses | 6 | 4 |
| Foreign currency translation and other | (15) | — |
| Balance as of September 30 | $31 | $52 |
Note 6. Inventories
Inventories were as follows:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Raw materials, parts, and supplies | $612 | $542 |
| Semi-finished and finished goods | 899 | 910 |
| Total Inventories | $1,511 | $1,452 |
Note 7. Property, plant and equipment, net
Property, plant and equipment, net was as follows:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Land and mineral reserves | $3,294 | $3,361 |
| Buildings and installations | 2,990 | 2,948 |
| Machines, furniture, vehicles and tools | 9,304 | 9,001 |
| Construction in progress | 607 | 439 |
| Finance lease right-of-use assets | 519 | 334 |
| Total property, plant and equipment | 16,714 | 16,083 |
| Less: accumulated depreciation, depletion and impairment | (8,877) | (8,549) |
| Property, plant and equipment, net | $7,837 | $7,534 |
Depreciation and depletion expense was$192 million and$189 million for the three months ended
September 30, 2025 and 2024, respectively, and$555 million and$542 million for the nine months ended
September 30, 2025 and 2024, respectively. Depreciation expense is recorded within Cost of revenues and Selling,
general and administrative expenses on the unaudited condensed consolidated statements of operations and depletion
expense is recorded within Cost of revenues on the unaudited condensed consolidated statements of operations.
The Company didnot record impairment chargesfor the three months ended September 30, 2025 and 2024.
Impairment charges related to assets no longer in service were$2 million for each of the nine months ended
September 30, 2025 and 2024. Asset impairments are included in Loss on impairments on the unaudited condensed
consolidated statements of operations.
The Company recorded gains on disposals of long-lived assets of$4 million and$43 million for the three
months ended September 30, 2025 and 2024, respectively, and$9 million and$49 million for the nine months ended
September 30, 2025 and 2024, respectively. The gains on disposalsfor the three and nine months ended September
30, 2024 included a gain of$31 million within the Building Materials segment related to a land expropriation
transaction.
Note 8. Goodwill and intangible assets, net
Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
| (In millions) | Building Materials | Building Envelope | Total |
|---|---|---|---|
| Balance as of December 31, 2024 | $4,891 | $4,026 | $8,917 |
| Acquisitions | 17 | — | 17 |
| Foreign currency translation adjustment and other(1) | 59 | — | 59 |
| Balance as of September 30, 2025 | $4,967 | $4,026 | $8,993 |
(1)Includes measurement period adjustments from prior year acquisitions.
No goodwill impairment triggering events were identified during thenine months ended September 30, 2025.
Intangible assets, net
Amortization of long-lived intangible assets was$36 million for each of the three months ended September
30, 2025 and 2024, and $105 million and$112 million for the nine months ended September 30, 2025 and 2024,
respectively, and is included within Cost of revenues and Selling, general and administrative expenses on the
unaudited condensed consolidated statements of operations. The Company doesnot have any indefinite-lived
intangible assets other than goodwill.
Note 9. Additional financial information
Prepaid expenses and other current assets consisted of the following:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Prepaid expenses | $106 | $93 |
| Contract assets | 69 | 30 |
| Other | 11 | 20 |
| Total Prepaid expenses and other current assets | $186 | $143 |
Other noncurrent assets consisted of the following:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Equity method investments | $50 | $56 |
| Advanced payments to suppliers(1) | 35 | 14 |
| Contract assets | 68 | 57 |
| Other | 104 | 67 |
| Total Other noncurrent assets | $257 | $194 |
(1)Advanced payments to suppliers primarily includes prepayment made to Sublime Systems.
Other current liabilities consisted of the following:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Finance lease liabilities | $105 | $65 |
| Income tax payable | 49 | 196 |
| Employee-related liabilities other than pension | 188 | 204 |
| Short-term provisions | 75 | 57 |
| Contract liabilities | 37 | 67 |
| Asset retirement obligations | 34 | 27 |
| Pension liabilities | 23 | 23 |
| Accrued purchases of property, plant and equipment | 47 | 72 |
| Self-insurance reserves | 30 | 27 |
| Accrued interest | 92 | 13 |
| Other(1) | 142 | 142 |
| Total Other current liabilities | $822 | $893 |
(1)Other current liabilities primarily consist of property taxes, sales taxes and accrued expenses.
Other noncurrent liabilities consisted of the following:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Liabilities for unrecognized tax benefits | $173 | $167 |
| Finance lease liabilities | 342 | 312 |
| Asset retirement obligations | 235 | 242 |
| Pension liabilities | 235 | 235 |
| Contract liabilities | 349 | 341 |
| Environmental remediation liabilities | 58 | 54 |
| Self-insurance reserves | 99 | 62 |
| Other(1) | 115 | 108 |
| Total Other noncurrent liabilities | $1,606 | $1,521 |
(1)Other noncurrent liabilities primarily consist of standard warranty reserves, employee-related liabilities other than pensions and end of lease
costs.
Note 10. Debt
Long-term debt consisted of the following:
| Effective interest rate as of September 30, | Balance as of September 30, | Balance as of December 31, | |
|---|---|---|---|
| (In millions) | 2025 | 2025 | 2024 |
| 3.500% Unsecured Notes due 2026 | 3.59% | $326 | $400 |
| 4.750% Unsecured Notes due 2046 | 5.02% | 554 | 590 |
| 4.600% Unsecured Notes due 2027 | 4.65% | 700 | — |
| 4.700% Unsecured Notes due 2028 | 4.76% | 700 | — |
| 4.950% Unsecured Notes due 2030 | 5.01% | 1,000 | — |
| 5.400% Unsecured Notes due 2035 | 5.47% | 1,000 | — |
| 7.125% Unsecured Notes due 2036 | 7.25% | 445 | — |
| 6.875% Unsecured Notes due 2039 | 6.99% | 191 | — |
| 6.500% Unsecured Notes due 2043 | 6.61% | 239 | — |
| 4.200% Unsecured Notes due 2033 | 4.24% | 50 | — |
| 7.650% Private Placement due 2031 | 7.80% | 50 | — |
| Other | 7 | 8 | |
| Total principal | 5,262 | 998 | |
| Unamortized discounts, premiums and debt issuance costs | 2 | (13) | |
| Total long-term debt | 5,264 | 985 | |
| Less: current portion of long-term debt | (332) | (5) | |
| Long-term debt | $4,932 | $980 |
Debt is reported on the condensed consolidated balance sheets at par value adjusted for unamortized
discount or premium and unamortized issuance costs. The fair value of the Company’s long-term debt as of
September 30, 2025 was$5,044 million, which is comprised of the fair value of unsecured notes of$4,987 million
and other long-term debt of$57 million. The fair value of the unsecured notes is based on listed market prices and
was categorized as Level 1 in the fair value hierarchy. The fair value of the Company’s other long-term debt
approximates carrying value. The fair value of the Company’s long-term debt was as follows:
| (In millions) | As of September 30, 2025 |
|---|---|
| Carrying amount | $4,932 |
| Fair value | $5,044 |
The Company recognized interest expense related to third-party debt of$79 million and$11 million for the
three months ended September 30, 2025 and 2024, respectively, and$144 million and$32 million for the nine
months ended September 30, 2025 and 2024, respectively. Debt issuance costs amortized to Interest expense, net on
the unaudited condensed consolidated statements of operations were immaterialfor the three and nine months ended
September 30, 2025 and 2024. Third-party interest income was$6 million and$2 million for the three months ended
September 30, 2025 and 2024, respectively, and$30 million and$12 million for the nine months ended September
30, 2025 and 2024, respectively. Refer to Note 18 (Related party) for interest income on amounts contributed to the
cash pooling program prior to the Spin-off.
Bond exchange
On May 19, 2025, Amrize Finance US LLC (“FinanceCo”), a wholly owned subsidiary of the Company,
launched debt-for-debt exchange offers pursuant to which it offered to exchange, on a par-for-par basis, (i)3.500%
guaranteed notes due 2026 issued by FinanceCo, with an aggregate outstanding principal amount of$400 million,
(ii)4.750% guaranteed notes due 2046 issued by FinanceCo, with an aggregate outstanding principal amount of
$590 million, (iii)7.125% notes due 2036 issued by a subsidiary of Parent, with an aggregate outstanding principal
amount of$483 million, (iv)4.200% notes due 2033 issued by a subsidiary of Parent, with an aggregate outstanding
principal amount of$50 million, (v)6.875% guaranteed notes due 2039 issued by a subsidiary of Parent, with an
aggregate outstanding principal amount of$250 million and (vi)6.500% notes due 2043 issued by a subsidiary of
Parent, with an aggregate outstanding principal amount of$250 million (collectively, the “Original Exchange
Notes”) for new senior debt securities (the “New Exchange Notes”) of a corresponding series with the same interest
rate, interest payment dates, maturity date and optional redemption features. The New Exchange Notes are
guaranteed by the Company. The debt-for-debt exchange offers were completed on June 18, 2025 with holders of
the subject debt securities tendering$880 million of Original Exchange Notes issued by FinanceCo and$925 million
of Original Exchange Notes issued by a subsidiary of Parent, resulting in the issuance of$1,805 million of New
Exchange Notes. For accounting purposes, the debt-for-debt exchange offers were treated as debt modifications
resulting in a portion of the unamortized debt discount and premiums of the Original Exchange Notes being
attributed to the New Exchange Notes at Parent’s carryover basis on the settlement date of the exchange offers.
FinanceCo and the Company also assumed the rights and obligations (as the new issuer and guarantor,
respectively) of$50 million of bonds due in 2031, originally issued by a subsidiary of Parent in a private placement
transaction.
Senior unsecured notes
On April 7, 2025, FinanceCo completed a$3.4 billion bond offering pursuant to an indenture agreement in
four tranches consisting of the following:$700 million 2-year senior notes priced at a fixed coupon of 4.600%
maturing in 2027,$700 million 3-year senior notes priced at a fixed coupon of 4.700% maturing in 2028,$1.0
billion 5-year senior notes priced at a fixed coupon of 4.950% maturing in 2030 and$1.0 billion 10-year senior
notes priced at a fixed coupon of 5.400% maturing in 2035 (collectively, the “Notes”). The net proceeds to the
Company from the Notes offering was$3,381 million after deductions for fees of$6 million anddiscounts and
related debt issuance costs of$13 million. The Notes were initially fully and unconditionally guaranteed on a senior
unsecured basis by Parent until completion of the Spin-off. Following the completion of the transfer of shares of
Amrize North America Inc. (including all the shares of its direct and indirect subsidiaries and, thereby, the shares of
FinanceCo) by Parent to the Company on May 15, 2025, the Notes are fully and unconditionally guaranteed on a
senior unsecured basis by the Company. Therefore, for a limited period, both the Company and Parent guaranteed
the Notes before Parent’s guarantee was automatically terminated and released upon the completion of the Spin-off.
The Company used the proceeds from the offering of the Notes to repay certain related-party notes with Parent.
Unsecured notes
On September 22, 2016, FinanceCo issued unsecured notes intwo series, each of which was guaranteed by
Parent prior to the Spin-off. The first series has a principal amount of$400 million with interest of 3.500% and a
maturity date of September 22, 2026. The second series has a remaining principal amount of$590 million with
interest of 4.750% and a maturity date of September 22, 2046. As described above, on June 18, 2025 holders of the
notes subject to the debt-for-debt exchange tendered$880 million of unsecured notes.
Bank credit
On May 15, 2025, the Company established a commercial paper program for the issuance of short-term
promissory notes with a maximum aggregate principal amount of$2.0 billion outstanding at any time (“Commercial
Paper Program”). The Commercial Paper Program provides for private placements in the United States under
Section 4(a)(2) of the Securities Act. The short-term promissory notes issued under the Commercial Paper Program
will be unsecured notes ranking at least pari passu with all of our other senior unsecured indebtedness. These short-
term promissory notes are anticipated to be offered at par less a discount representing an interest factor or, if interest
bearing, at par. The Commercial Paper Program contains representations and warranties, covenants and events of
default that are customary for this type of financing. On June 10, 2025, the Company began issuing short-term
promissory notes under the Commercial Paper Program. As of September 30, 2025, the Company has $547 million
notes outstanding, with a weighted average interest rate of 4.449%, included within Short-term borrowings on the
condensed consolidated balance sheets.
On March 24, 2025, the Company entered into a 5-year committed, senior unsecured revolving credit
facility that may be used for general corporate purposes (the “Revolving Credit Facility”) with commitments of$2
billion. Interest is payable on the loans under the Revolving Credit Facility at a rate per annum equal to: (i) for
revolving loans in U.S. dollars, either (A) a base rate defined as a rate per annum equal to the greatest of (x) the
prime rate then in effect, (y) the greater of the federal funds rate and the overnight bank funding rate then in effect,
in each case, as determined by the Federal Reserve Bank, plus 0.500% per annum, and (z) term SOFR rate
determined on the basis of a one-month interest period, plus 1.000% (thegreatest of (x), (y) and (z), the“Base
Rate”) or (B) the forward-looking SOFR term rate published by CME Group Benchmark Administration Limited
subject to a floor ofzero (“Term SOFR”) and (ii) for revolving loans in Canadian dollars, the forward-looking
CORRA term rate published by Candeal Benchmark Administration Services Inc., TSX Inc. or a successor
administrator, subject to a floor ofzero, plus, in each case(i) or (ii), an applicable margin based on the Company’s
credit rating. There wereno outstanding balances as of September 30, 2025.
On March 24, 2025, the Company entered into a bridge credit agreement providing for a 364-day
committed, senior unsecured bridge loan (the “Bridge Loan”) with commitments of$5.1 billion. On April 8, 2025,
the Company provided notice of the Notes offering to the administrative agent of the Bridge Loan, thereby reducing
commitments available under the Bridge Loan to$1.7 billion due to the fact that the Company received net cash
proceeds of$3.4 billion from the Notes offering. The Bridge Loan commitments were terminated upon completion
of the Spin-off as the Spin-off was consummated without a borrowing under the Bridge Loan facility.
The Company has$60 million available in short-term lines of credit expiring December 31, 2025, payable
on demand. During thenine months ended September 30, 2025 and the year ended December 31, 2024, the
Company drew down from these credit lines, all of which were repaid within two business days. There wereno
outstanding balances as of September 30, 2025 and December 31, 2024.
The Company has 40 million Canadian dollars available in short-term lines of credit, payable on demand.
There wereno outstanding balances against these lines of credit as of September 30, 2025 and December 31, 2024.
As of September 30, 2025 and December 31, 2024, the Company had unutilized non-trade standby letters
of credit of$134 million and$213 million, respectively.
The Company also had intercompany debt arrangements with Parent prior to the Spin-off. See Note 18
(Related party) for additional detail.
Covenants
Certain debt instruments contain restrictive covenants, including a financial covenant that requires the
Company to maintain a net leverage ratio of no more than 3.75 to 1, tested at the end of each fiscal quarter. As of
September 30, 2025, the Company was in compliance with the financial covenants of its debt agreements.
Note 11. Leases
The Company has significant operating and finance leases, including buildings and installations, land,
machinery and equipment, furniture and fixtures, land fleet equipment, and rail fleet equipment located within the
United States and Canada.
Balance sheet information related to leases was as follows:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Operating lease right-of-use assets, net | $617 | $547 |
| Finance lease right-of-use assets, net | 401 | 312 |
| Total lease assets, net | $1,018 | $859 |
| Current portion of operating lease liabilities | 129 | 149 |
| Current portion of finance lease liabilities | 105 | 65 |
| Noncurrent portion of operating lease liabilities | 501 | 386 |
| Noncurrent portion of finance lease liabilities | 342 | 312 |
| Total lease liabilities | $1,077 | $912 |
Finance lease right-of-use assets, net are included as a component of Property, plant and equipment, net on
thecondensed consolidated balance sheets. The current portion of finance lease liabilities are included within Other
current liabilities, and the noncurrent portion of finance lease liabilities are included within Other noncurrent
liabilities on thecondensed consolidated balance sheets.
The following table summarizes the components of lease expense recorded in theunaudited condensed
consolidated statements of operations:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Operating lease expense | $48 | $41 | $134 | $118 |
| Finance lease expense | ||||
| Amortization of leased assets | 25 | 22 | 73 | 62 |
| Interest on lease liabilities | 4 | 4 | 13 | 11 |
| Short term lease cost | 15 | 14 | 42 | 44 |
| Variable lease cost | 2 | 1 | 3 | 3 |
| Total lease expense | $94 | $82 | $265 | $238 |
Note 12. Asset retirement obligations
Asset retirement obligation costs related to accretion of the Company’s liabilities and depreciation of the
related assets were as follows:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Accretion | $3 | $3 | $10 | $10 |
| Depreciation | 6 | 5 | 17 | 14 |
| Total costs | $9 | $8 | $27 | $24 |
As of September 30, 2025 and December 31, 2024, the current portion of the Company’s liability for asset
retirement obligations, which is included within Other current liabilities on the condensed consolidated balance
sheets, was$34 million and$27 million, respectively, and the noncurrent portion of the Company’s liability for asset
retirement obligations, which is included in Other noncurrent liabilities on thecondensed consolidated balance
sheets, was$235 million and$242 million, respectively. The following is a reconciliation of asset retirement
obligations:
| (In millions) | 2025 |
|---|---|
| Balance as of January 1 | $269 |
| Accretion expense | 10 |
| Liabilities incurred and acquired | 2 |
| Liabilities settled | (13) |
| Foreign currency translation adjustment | 1 |
| Balance as of September 30 | $269 |
Note 13. Income taxes
Income tax provision
Prior to the Spin-off, income tax expense and income tax balances were calculated using the separate tax
return method. The separate tax return method applies the accounting guidance for income taxes to the stand-alone
financial statements as if the Company were a separate taxpayer and a stand-alone enterprise. U.S. and Canadian
operations, which represent the majority of the Company’s operations, were not included in Parent’s tax filings prior
to the Spin-off, and there has been no substantive change in the tax filing profile for those jurisdictions. The
Company’s Swiss operations were included in Parent’s Swiss legal structure and tax filings prior to the Spin-off.
Post Spin-off, the income tax provisions are calculated based on the Company’s operating footprint, as well
as tax return elections and assertions. Given that prior to the Spin-off the Company’s U.S. and Canadian operations
were not included in Parent’s tax filings, U.S. and Canadian tax returns will be filed on a full-year basis in 2025.
Swiss operations, which were included in Parent’s tax filings prior to the Spin-off, will be reflected in separate Swiss
tax returns filed by the Company beginning on the date of the Spin-off. Tax liabilities as of September 30, 2025 are
reported within thecondensed consolidated balance sheet based upon estimated amounts due to tax authorities for
which the Company is the primary obligor.
The Company’s tax provision for the interim period is calculated using an estimated annual effective tax
rate based on the expected full-year results which is applied to ordinary year-to-date income. The tax provision is
adjusted for discrete items that occur in the period to arrive at the total tax expense.
The calculation of the Company’s income tax expense is set forth below:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions, except for percentage data) | 2025 | 2024 | 2025 | 2024 |
| Total tax expense | $150 | $155 | $226 | $293 |
| Effective income tax rate | 21.8% | 22.0% | 20.5% | 23.1% |
The Company’s estimated annual effective tax rate is based on full-year expectations of pretax earnings,
statutory tax rates and permanent differences between book and tax accounting.
Effective January 1, 2024, the Company is subject to the 15% minimum tax rate provisions of the
Organization for Economic Co-operation and Development Pillar Two framework enacted into law in both
Switzerland and Canada, jurisdictions in which the Company operates. Estimated Pillar Two taxes of$2 million and
$3 million have been included in the calculation of the Company’s effective tax ratefor the three months ended
September 30, 2025 and 2024, respectively, and$6 million and$8 million have been included in the calculation of
the Company’s effective tax ratefor the nine months ended September 30, 2025 and 2024, respectively.
The change in the effective tax rate compared to the U.S. federal statutory tax rate of 21% for the three and
nine months ended September 30, 2025 and 2024 was primarily attributable to the jurisdictional mix of pre-tax
income, changes in uncertain tax positions, Pillar Two tax and prior year accrual adjustments.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law, which reinstates several
favorable tax provisions effective in 2025. The tax effects of the OBBBA have been recognized in the period of
enactment and did not have a material impact on our effective tax rate forthe period ended September 30, 2025.
Note 14. Segment information
The Company is organized intotwo reportable segments — Building Materials and Building Envelope —
that are aligned with the products and services it provides and based upon the information used by the CODM in
evaluating the performance of the business and allocating resources and capital. The Building Materials segment
offers a range of branded solutions delivering high-quality products for a wide range of applications. These include
cement and aggregates, as well as a variety of downstream products and solutions such as ready-mix concrete,
asphalt and other construction materials. The Building Envelope segment offers advanced roofing and wall systems,
including single-ply membranes, insulation, shingles, sheathing, waterproofing and protective coatings, along with
adhesives, tapes and sealants that are critical to the application of roofing and wall systems.
The Company determines its operating segments based on the discrete financial information that is
regularly evaluated by its CODM in deciding how to allocate resources and in assessing performance. In connection
with the Spin-off, the CODM was determined to be the Company’s CEO as he is responsible for allocating resources
and assessing performance. The discrete financial information regularly evaluated by the CODM and operating
segment conclusions are consistent prior to and following the completion of the Spin-off. For both segments, the
CODM uses Segment Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) in the
financial planning and resource allocation process. The CODM considers Segment Adjusted EBITDA on a monthly
basis to evaluate the performance of each segment and make decisions about allocating resources to each segment.
Segment Adjusted EBITDA excludes the impact of Depreciation, depletion, accretion and amortization, Loss on
impairments, unallocated corporate costs, acquisition and integration costs, certain litigation related costs, Spin-off
and separation-related costs, restructuring and other costs and Other non-operating (expense) income, net. The
accounting policies applicable to each segment are consistent with those used on these unaudited condensed
consolidated financial statements.
The key performance indicators for the Company’s reportable segments are presented in the following
table. Certain totals presented below may not agree with the line items on the unaudited condensed consolidated
statements of operations primarily due to (a) depreciation, depletion, accretion and amortization and (b) unallocated
corporate costs.
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Revenues: | ||||
| Building Materials | $2,774 | $2,551 | $6,353 | $6,249 |
| Building Envelope | 901 | 895 | 2,623 | 2,606 |
| Total Revenues | $3,675 | $3,446 | $8,976 | $8,855 |
| Cost of revenues: | ||||
| Building Materials | $1,791 | $1,551 | $4,334 | $4,142 |
| Building Envelope | 596 | 616 | 1,742 | 1,754 |
| Total cost of revenues | $2,387 | $2,167 | $6,076 | $5,896 |
| Other segment expenses(1): | ||||
| Building Materials | $81 | $58 | $239 | $221 |
| Building Envelope | 88 | 80 | 279 | 252 |
| Total other segment expenses | $169 | $138 | $518 | $473 |
| Segment Adjusted EBITDA: | ||||
| Building Materials | $902 | $942 | $1,780 | $1,886 |
| Building Envelope | 217 | 199 | 602 | 600 |
| Total Segment Adjusted EBITDA | $1,119 | $1,141 | $2,382 | $2,486 |
| Reconciling items: | ||||
| Depreciation, depletion, accretion and amortization | (231) | (228) | (670) | (664) |
| Loss on impairments | — | — | (2) | (2) |
| Unallocated corporate costs | (52) | (38) | (154) | (96) |
| Acquisition and integration costs(2) | (4) | (18) | (33) | (33) |
| Litigation related costs | (40) | (2) | (44) | (3) |
| Spin-off and separation-related costs(3) | (10) | (8) | (35) | (19) |
| Restructuring and other costs | (4) | (3) | (13) | (11) |
| Interest income | 5 | 7 | 41 | 22 |
| Interest expense | (94) | (137) | (369) | (406) |
| Other non-operating (expense) income, net | — | (11) | 2 | (7) |
| Total reconciling items | $(430) | $(438) | $(1,277) | $(1,219) |
| Income before income tax expense and income from equity method investments: | $689 | $703 | $1,105 | $1,267 |
(1)Other segment expenses consist of selling, general and administrative expenses and gains on disposals of long-lived assets.
(2)Acquisition and integration costs primarily include certain warranty charges related to a pre-acquisition manufacturing issue.
(3)Spin-off and separation-related costs notably include rebranding costs.
The Company’s capital expenditures by segment were as follows:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Capital expenditures(1): | ||||
| Building Materials | $147 | $197 | $533 | $501 |
| Building Envelope | 38 | 24 | 98 | 57 |
| Total capital expenditures | $185 | $221 | $631 | $558 |
(1)Capital expendituresfor the three and nine months ended September 30, 2025 and 2024 exclude noncash transactions for capital
expenditure-related accounts payable.
The Company’s assets by segment were as follows:
| As of | As of | |
|---|---|---|
| (In millions) | September 30, 2025 | December 31, 2024 |
| Segment assets(1): | ||
| Building Materials | $15,502 | $14,306 |
| Building Envelope | 7,264 | 6,987 |
| Total segment assets | 22,766 | 21,293 |
| Other assets | 1,269 | 2,512 |
| Total assets | $24,035 | $23,805 |
(1)Segment assets are comprised of Accounts receivable, net, Inventories, Property, plant and equipment, net, Goodwill, Intangible assets, net
and Operating lease right-of-use assets, net.
Note 15. Pension and other postretirement benefits
The Company sponsors defined benefit pension plans, other postretirement benefit plans and defined
contribution plans in which only employees, retirees and former employees of the Company participate. The
Company’s employees also participate in certain union-sponsored multiemployer pension plans to which the
Company contributes along with other employers. The majority of the defined benefit pension plans are closed to
new entrants and frozen to future accruals. The Company presents the service cost component of Net periodic
pension benefit cost within Cost of revenues and Selling, general and administrative expenses on the unaudited
condensed consolidated statements of operations. The other components of Net periodic pension benefit cost are
reported within Other non-operating income, net on the unaudited condensed consolidated statements of operations.
In connection with the completion of the Spin-off, effective June 1, 2025 and June 20, 2025, Parent
transferred to the Company certain Swiss employees who historically operated within specific corporate functions of
Parent. The impact was a transfer of total pension plan assets of$55 million and total pension plan obligations of
$53 million associated with these Swiss employees. The incremental costs related to the pension plan transfer were
immaterial to these unaudited condensed consolidated financial statements. These employees were covered under
the Holcim Pension Fund (“HPF”) and Holcim Supplementary Pension Fund (“HSPF”), which are pension plans
sponsored by Parent. The funded status associated with these employees under the HPF and HSPF was not reflected
on the combined balance sheet as of December 31, 2024. Following the completion of the Spin-off, the accumulated
asset balances associated with these employees will remain in the HPF and HSPF under an affiliation agreement.
However, under Swiss law, any employees transferred must transfer their accumulated asset balances to their new
employer, and the new employer becomes responsible for the pension obligations associated with the accumulated
asset balances. The incremental net pension plan assets are reported within Other noncurrent assets on thecondensed
consolidated balance sheet as of September 30, 2025.
Defined benefit pension plans
The following table summarizes, with respect to defined benefit pension plans, the components of Net
periodic pension benefit cost:
| For the three months ended September 30, | ||||
|---|---|---|---|---|
| Defined Benefit Pension Plans | ||||
| U.S. | Non-U.S. | |||
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Components of Net periodic pension benefit | ||||
| Service cost | $— | $— | $2 | $— |
| Interest cost | 1 | 1 | 3 | 9 |
| Expected return on assets | — | — | (3) | (8) |
| Amortization of actuarial gain | (1) | — | — | — |
| Settlement loss | — | — | — | 12 |
| Net periodic pension benefit cost | $— | $1 | $2 | $13 |
| For the nine months ended September 30, | ||||
|---|---|---|---|---|
| Defined Benefit Pension Plans | ||||
| U.S. | Non-U.S. | |||
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Components of Net periodic pension benefit | ||||
| Service cost | $— | $— | $3 | $2 |
| Interest cost | 3 | 3 | 8 | 25 |
| Expected return on assets | — | — | (8) | (24) |
| Amortization of actuarial gain | (1) | — | — | — |
| Settlement loss | — | — | — | 12 |
| Net periodic pension benefit cost | $2 | $3 | $3 | $15 |
Other postretirement benefit plans
The following table summarizes, with respect to other postretirement benefit plans, the components of Net
periodic pension benefit cost:
| For the three months ended September 30, | ||||
|---|---|---|---|---|
| Other Postretirement Benefit Plans | ||||
| U.S. | Non-U.S. | |||
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Components of Net periodic pension benefit | ||||
| Service cost | $— | $— | $1 | $1 |
| Interest cost | — | 1 | — | 1 |
| Amortization of actuarial gain | — | (1) | — | (1) |
| Net periodic pension benefit cost | $— | $— | $1 | $1 |
| For the nine months ended September 30, | ||||
|---|---|---|---|---|
| Other Postretirement Benefit Plans | ||||
| U.S. | Non-U.S. | |||
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Components of Net periodic pension benefit | ||||
| Service cost | $— | $— | $1 | $1 |
| Interest cost | 2 | 2 | 2 | 3 |
| Amortization of actuarial gain | (2) | (2) | — | (1) |
| Net periodic pension benefit cost | $— | $— | $3 | $3 |
Defined contribution plans
In addition to the defined benefit pension plans and other postretirement benefit plans, the Company
sponsors various defined contribution plans for U.S. and Canadian employees. Expense recognized with the defined
contribution plans totaled$21 million and$20 million for the three months ended September 30, 2025 and 2024,
respectively, and$69 million and$63 million for the nine months ended September 30, 2025 and 2024, respectively,
and is included within Cost of revenues and Selling, general and administrative expenses on the unaudited
condensed consolidated statements of operations.
Union-sponsored multiemployer pension plans
The Company participates in and contributes to various union-sponsored multiemployer pension plans for
U.S. and Canadian employees. The risks of participating in multiemployer pension plans differ from single employer
plans as follows:
Assets contributed to a multiemployer pension plan by one employer may be used to provide benefits to
employees of other participating employers;
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be
borne by the remaining participating employers; and
If the Company chooses to stop participating in one or more of the multiemployer pension plans to which it
contributes, the Company may be required to pay those plans an amount based on the underfunded status of
the plan, referred to as a withdrawal liability.
None of the union-sponsored multiemployer pension plans in which the Company participates are
individually significant. Total contributions to union-sponsored multiemployer pension plans were$10 million and
$9 million for the three months ended September 30, 2025 and 2024, respectively, and$27 million and$26 million
for the nine months ended September 30, 2025 and 2024, respectively.
Note 16. Accumulated other comprehensive loss
The changes in the balances for each component of Accumulated other comprehensive loss, net of tax, were
as follows:
| (In millions) | Foreign Currency Translation Adjustment | Cash Flow Hedges | Defined Benefit Pension and Other Postretirement Benefit Plans | Total |
|---|---|---|---|---|
| Balance as of June 30, 2025 | $(396) | $— | $35 | $(361) |
| Other comprehensive (loss) income before reclassifications | (80) | 1 | 1 | (78) |
| Amounts reclassified from Accumulated other comprehensive loss to Net income | — | (1) | — | (1) |
| Net current-period Other comprehensive (loss) income | (80) | — | 1 | (79) |
| Other comprehensive loss attributable to noncontrolling interests | — | — | — | — |
| Balance as of September 30, 2025 | $(476) | $— | $36 | $(440) |
| Balance as of June 30, 2024 | $(443) | $(9) | $(11) | $(463) |
| Other comprehensive income (loss) before reclassifications | 70 | 4 | (10) | 64 |
| Amounts reclassified from Accumulated other comprehensive loss to Net income | — | (8) | 8 | — |
| Net current-period Other comprehensive income (loss) | 70 | (4) | (2) | 64 |
| Balance as of September 30, 2024 | $(373) | $(13) | $(13) | $(399) |
| (In millions) | Foreign Currency Translation Adjustment | Cash Flow Hedges | Defined Benefit Pension and Other Postretirement Benefit Plans | Total |
|---|---|---|---|---|
| Balance as of December 31, 2024 | $(634) | $(7) | $35 | $(606) |
| Other comprehensive income (loss) before reclassifications | 158 | 11 | 1 | 170 |
| Amounts reclassified from Accumulated other comprehensive loss to Net income | — | (4) | (2) | (6) |
| Net current-period Other comprehensive income (loss) | 158 | 7 | (1) | 164 |
| Unrecognized gain transferred from Parent pension | — | — | 2 | 2 |
| Balance as of September 30, 2025 | $(476) | $— | $36 | $(440) |
| Balance as of December 31, 2023 | $(290) | $(16) | $(11) | $(317) |
| Other comprehensive (loss) income before reclassifications | (83) | 5 | (9) | (87) |
| Amounts reclassified from Accumulated other comprehensive loss to Net income | — | (2) | 7 | 5 |
| Net current-period Other comprehensive (loss) income | (83) | 3 | (2) | (82) |
| Balance as of September 30, 2024 | $(373) | $(13) | $(13) | $(399) |
The following amounts were reclassified from Accumulated other comprehensive loss to Net income:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2025 | 2024 | 2025 | 2024 |
| Net change in fair value of effective portion of cash flow hedges | ||||
| Cost of revenues | $(2) | $(7) | $(6) | $(1) |
| Income tax expense (benefit) | 1 | (1) | 2 | (1) |
| Total | $(1) | $(8) | $(4) | $(2) |
| Actuarial losses and prior service costs for defined benefit pension plans and other postretirement benefit plans | ||||
| Other non-operating income, net | $(1) | $10 | $(3) | $9 |
| Income tax expense (benefit) | 1 | (2) | 1 | (2) |
| Total | $— | $8 | $(2) | $7 |
| Total amounts reclassified from Accumulated other comprehensive income (loss) to Net income | $(1) | $— | $(6) | $5 |
The Company releases tax effects from Accumulated other comprehensive loss when the underlying items
affect earnings.
Note 17. Commitments and contingencies
Commitments
In the ordinary course of business, the Company enters into purchase commitments for goods and services
including various products and capital expenditures for property, plant and equipment. The Company had purchase
commitments for capital expenditures of$222 million and other contractual commitments for products and
intangibles of$683 million as of September 30, 2025.
Contingencies
In the ordinary course of conducting its business activities, the Company is involved in judicial,
administrative and regulatory investigations and proceedings, as well as lawsuits and claims of various natures,
involving both private parties and governmental authorities, relating to product liability, general and commercial
liability, competition, environmental, employment, health and safety and other matters. These claims and
proceedings include insured, self-insured, and uninsured matters that are brought on an individual, collective,
representative and class-action basis.
The Company records a liability for contingencies when the occurrence of a loss is probable and the
amount can be reasonably estimated, and records legal fees as incurred. If a range of amounts can be reasonably
estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range
is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is
probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably
possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which
are material, the Company discloses the nature of the contingency and, where an estimate can reasonably be made,
an estimate of the possible loss. Accruals are based on the best information available, but in certain situations,
management is unable to estimate an amount or range of a reasonably possible loss, including, but not limited to,
when: (1) the damages are indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are
involved, or (4) the matter involves novel or unsettled legal theories.
The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with
these unresolved legal actions is not material. In some cases, the Company cannot reasonably estimate a range of
loss because there is insufficient information regarding the matter. Although it is not possible to predict with
certainty the outcome of these unresolved legal actions, the Company believes that these actions will not
individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial
position or liquidity. In the third quarter of 2025, the Company accrued nonrecurring legal costs of approximately
$40 million, consisting primarily of litigation and settlement costs that were mainly paid in the fourth quarter of
Warranties
The Company provides standard warranties on many of its products within the Building Envelope segment.
The liability for standard warranty programs is included in Other current liabilities and Other noncurrent liabilities.
The change in the standard warranty liabilityfor the nine months ended September 30, 2025 and 2024 is as follows:
| (In millions) | 2025 | 2024 |
|---|---|---|
| Balance as of January 1 | $60 | $18 |
| Increase for warranties issued | 12 | 10 |
| Increase for pre-existing warranties | 23 | 52 |
| Decrease for payments | (26) | (22) |
| Balance as of September 30 | $69 | $58 |
The Company increased the standard pre-existing warranty accrual for the Building Envelope segment by
$4 million and$40 million for the three months ended September 30, 2025 and 2024, respectively, and$23 million
and$52 million for the nine months ended September 30, 2025 and 2024, respectively, which was recorded in Cost
of revenues on theunaudited condensed consolidated statements of operations, notably attributed to a pre-
acquisition manufacturing issue. The increase in the pre-existing accrual associated with the Company’s standard
warranty program was influenced by important factors such as the long-tail line of coverage, persistent claims
experience, and relatively immature claims history.
Environmental matters
The Company’s operations are subject to and affected by federal, state, provincial and local laws and
regulations relating to, among other things, environmental matters (including climate change and greenhouse gas
emissions), health and safety matters (including related to the use of hazardous materials) and other regulatory
matters. Environmental operating permits, which are subject to modification, renewal and revocation, may be
required for the Company’s operations. The Company monitors and reviews its operations, procedures and policies
for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is
inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses, and
there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on
the Company’s financial condition, results of operations or liquidity.
The Company accrued environmental remediation obligations of$65 million and$64 million for cleanup,
restoration and ongoing maintenance and monitoring requirements as of September 30, 2025 and December 31,
2024, respectively, which are included in Other current liabilities and Other noncurrent liabilities on thecondensed
consolidated balance sheets.
Off balance sheet arrangements
Periodically, the Company enters into off balance sheet commitments, including surety bonds and letters of
credit, to fulfill certain obligations related to specific projects, insurance and site restoration. As of September 30,
2025 and December 31, 2024, the Company had outstanding commitments amounting to$788 million and$809
million, respectively. Historically, no material claims have been made against these financial instruments. The
Company did not have any other off balance sheet arrangements as of September 30, 2025 and December 31, 2024.
Self-insurance reserves
The Company’s wholly-owned captive insurance company, Mountain Prairie Insurance Company
(“MPIC”), which is subject to applicable insurance rules and regulations, is the primary insurer for the Company’s
exposure related to workers’ compensation, general liability, property, product liability and automobile liability.
Additionally, the Company maintains a self-insurance reserve for health insurance programs offered to eligible
employees. The Company purchases excess coverage from unrelated insurance carriers and obtains third-party
coverage for other forms of insurance.
MPIC establishes a reserve for estimated losses on reported claims and those incurred but not yet reported
utilizing actuarial projections and historical trends. The reserves are classified within Other current liabilities or
Other noncurrent liabilities on thecondensed consolidated balance sheets based on projections of when the
estimated loss will be paid. The estimates that are utilized to record potential losses on claims are inherently
subjective, and actual claims could differ from amounts recorded, which could result in an increase or decrease of
expense in future periods.
Self-insurance reserves, excluding certain amounts recorded in Accounts payable, were$129 million and
$89 million as of September 30, 2025 and December 31, 2024, respectively.
Note 18. Related party
Pursuant to the Spin-off, Parent ceased to be a related party to the Company and accordingly, no related
party transactions or balances have been reported subsequent to the Separation and Distribution Date. In connection
with the Spin-off, the Company entered into a number of agreements with Parent to govern the Spin-off and provide
a frameworkfor the relationship between the parties going forward, including, but not limited to the following:
Separation and Distribution Agreement- sets forth the principal actions to be taken in connection with the
Spin-off, including the transfer of assets and assumption of liabilities, and establishes certain rights and
obligations between the Company and Parent following the Spin-off, including procedures with respect to
claims subject to indemnification and related matters.
Transition Services Agreement- governs all matters relating to the provision of services between the
Company and Parent on a transitional basis. The services the Company receives primarily include support
for information technology-related functions. The transition services generally commenced on the date of
Spin-off and are expected to be completed over a period ofone year, but no longer thantwo years after the
Spin-off.
Tax Matters Agreement- governs the respective rights, responsibilities, and obligations between the
Company and Parent with respect to all tax matters, in addition to certain restrictions which generally
prohibit the Company from taking or failing to take any action for periods of varying length, fromtwo
years to as long asfive years, following the Spin-off that would prevent the Spin-off from qualifying as tax-
free for U.S. federal income tax purposes, including limitations on the Company’s ability to pursue certain
strategic transactions. The allocation of liabilities for payroll taxes and reporting and other employee tax
matters is covered by the Employee Matters Agreement and the allocation of liabilities for all other taxes is
covered by the Tax Matters Agreement.
The financial statement impact of these agreements was immaterial as of September 30, 2025 and for the
three and nine months ended September 30, 2025.
The following discussion summarizes activity between the Company and Parent that occurred prior to the
completion of the Spin-off.
Related-party transactions
The Company and Parent have historically had intercompany activity, resulting in revenues and expenses
for both parties prior to the Spin-off. Transactions between the Company and other businesses of Parent were
considered related-party transactions. Revenues for products and services provided to Parent by the Company were
$12 million for the three months ended September 30, 2024, and$33 million and$58 million for the nine months
ended September 30, 2025 and 2024, respectively. The costs incurred by the Company related to products and
services purchased from Parent were$54 million for the three months ended September 30, 2024, and$69 million
and$167 million for the nine months ended September 30, 2025 and 2024, respectively, and are contained within
Cost of revenues on the unaudited condensed consolidated statements of operations. The Company also generated
revenues from its equity method investees of$5 million and$6 million for the three months ended September 30,
2025 and 2024, respectively, and$11 million and$12 million for the nine months ended September 30, 2025 and
2024, respectively.
Certain related-party transactions between the Company and Parent have been included in these unaudited
condensed consolidated financial statements prior to the Spin-off. Trade receivables and payables, as well as non-
trade receivables and payables, between the Company and Parent are cash settled and are presented within Accounts
receivable and Accounts payable on thecondensed consolidated balance sheets. These amounts were previously
presented as Due from related-party and Due to related-party, respectively. The net effect of the settlement of these
intercompany transactions is reflected within Cash flows from operating activities on the unaudited condensed
consolidated statements of cash flows. As of December 31, 2024, trade receivables from Parent were$21 million,
non-trade receivables from Parent were$37 million, trade payables due to Parent were$8 million and non-trade
payables due to Parent were$3 million.
Allocation of corporate expenses
The unaudited condensed consolidated statements of operations include expense allocations for certain
corporate, infrastructure and other shared services that were provided by Parent on a centralized basis, including but
not limited to accounting and financial reporting, treasury, tax, legal, human resources, information technology,
insurance, employee benefits and other shared services that are either specifically identifiable or directly attributable
to the Company, prior to the Spin-off. These expenses had been allocated to the Company on the basis of direct
usage when specifically identifiable, with the remainder predominantly allocated on a pro rata basis using revenues.
The Company’s management considers this allocation to be a reasonable reflection of the utilization of services
provided or the benefit received by the Company during the periods presented prior to the Spin-off. However, these
expense allocations may not be indicative of the actual expenses that would have been incurred had the Company
been a standalone company during the periods presented, and they may not reflect what the Company’s results of
operations may be in the future.
All such amounts have been deemed to have been incurred and settled by the Company in the period in
which the costs were recorded and are included within Net parent investment on the condensed consolidated balance
sheet prior to the Spin-off.
Allocations for management costs and corporate support services provided to the Company prior to the
Spin-off were as follows:
| For the three months ended September 30, · For the nine months ended September 30, | |||
|---|---|---|---|
| (In millions) | 2024 | 2025 | 2024 |
| Cost of revenues | $6 | $16 | $21 |
| Selling, general and administrative expenses | 29 | 44 | 73 |
| Total | $35 | $60 | $94 |
Cash management and financing
Prior to the Spin-off, a majority of the Company’s subsidiaries participated in Parent’s centralized cash
management and financing function. While the Company maintained bank accounts in the name of its respective
legal entities in order to conduct day-to-day business, cash was managed centrally as part of the overall treasury
function and Parent oversaw a cash pooling program whereby cash was swept from any subsidiary accounts,
including the Company’s accounts, on a daily basis. This mechanism optimized cash management and was used to
ensure all of Parent’s businesses had the working capital needed to run their day-to-day activities.
Depending on the Company’s contributions and withdrawals to and from the cash pool, it was either in a
net lending or borrowing position. No maturity dates nor payment schedules were outlined in the agreements
governing the cash pooling program and there was no periodic cash settlement as part of the cash pooling program.
As of December 31, 2024, the Company had outstanding receivables related to amounts provided to Parent’s
centralized cash management and financing function of$532 million, which is included in Related-party notes
receivable on thecondensed consolidated balance sheet. The balance was settled prior to the Spin-off. The Company
paid interest expense of less than$1 million for the three months ended September 30, 2024, and less than$1
million and$1 million for the nine months ended September 30, 2025 and 2024, respectively, on borrowings from
Parent’s centralized cash management and financing function. The Company received interest income of$4 million
for thethree months ended September 30, 2024, and$12 million and$9 million for the nine months ended
September 30, 2025 and 2024, respectively, on amounts contributed to the cash pooling program.
Related-party notes payable
The Company had short-term and long-term borrowing arrangements with Parent prior to the Spin-off.
These borrowings have been included in both current and noncurrent liabilities within Related-party notes payable
on the condensed consolidated balance sheet.
The borrowing arrangements with Parent were primarily for working capital needs and for financing certain
acquisitions and had an aggregate principal balance of$7,645 million and$7,647 million as of June 22, 2025 and
December 31, 2024, respectively. Prior to the Spin-off, the Company settled$5,646 million of related-party notes
payable, with the remaining$1,999 million contributed by Parent to the Company as equity. The Company
recognized interest expense from related-party notes payable of$115 million for thethree months ended September
30, 2024, and$183 million and$342 million for the nine months ended September 30, 2025 and 2024, respectively.
As of December 31, 2024, interest payable to Parent was$78 million related to related-party notes payable.
Net parent investment
As a result of the Spin-off, Net parent investment in thecondensed consolidated balance sheets was fully
settled on the Separation and Distribution Date.
Prior to the Spin-off, Net parent investment in thecondensed consolidated balance sheets and unaudited
condensed consolidated statements of equity represented Parent’s historical investment in the Company, the net
effect of transactions with Parent and allocations from Parent, and the Company’s accumulated earnings. Net
transfers to Parent are included within Net parent investment. During thethree months ended September 30, 2025,
certain Spin-off-related adjustments were recorded to reflect transfers from Parent and settlement of Spin-off
transactions with Parent, which resulted in a net increase to total equity of$2,027 million. These items substantially
consisted of the completion of the bond exchange as described in Note 10 (Debt) and the settlement of intercompany
debt as described above. The components of Net transfers to Parent on the unaudited condensed consolidated
statements of cash flows and the reconciliation to the corresponding amounts presented within the unaudited
condensed consolidated statements of equity, which includes certain non-cash elements, were as follows:
| For the nine months ended September 30, | ||
|---|---|---|
| (In millions) | 2025 | 2024 |
| Net transfers to Parent as reflected on the unaudited condensed consolidated statements of cash flows (1) | $(91) | $(297) |
| Equity contribution from Parent related to the settlement of Related-party notes payable | 1,999 | — |
| Other non-cash activities with Parent, net(2) | 25 | 32 |
| Net transfers (to) from Parent as reflected on the unaudited condensed consolidated statements of equity | $1,933 | $(265) |
(1)Net transfers to Parent as reflected on the unaudited condensed consolidated statements of cash flows includes general financing activities
and allocation of Parent’s corporate expenses.
(2)Other non-cash activities with Parent, net primarily consist of the net contribution from Parent from the completion of the bond exchange as
described in Note 10 (Debt) for thenine months ended September 30, 2025 and income taxes paid by Parent for thenine months ended
September 30, 2024.
Note 19. Supplemental cash flow information
Cash expenditures were as follows:
| For the nine months ended September 30, | ||
|---|---|---|
| (In millions) | 2025 | 2024 |
| Interest paid | $314 | $338 |
| Income taxes paid | 350 | 295 |
| Operating cash flows used for operating leases | (126) | (118) |
| Operating cash flows used for finance leases | (13) | (11) |
| Financing cash flows used for finance leases | (75) | (59) |
Non-cash investing and financing transactions were as follows:
| For the nine months ended September 30, | ||
|---|---|---|
| (In millions) | 2025 | 2024 |
| Accrued purchases of property, plant and equipment | $47 | $33 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 124 | 204 |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 180 | 109 |
| Equity contribution from Parent related to the settlement of Related-party notes payable | 1,999 | — |
| Debt assumed in connection with a business combination | 2 | — |
Note 20. Earnings per share and shareholders’ equity
Basic earnings per share is computed by dividing net income attributable to the Company by the weighted-
average number of shares outstanding during the applicable period. Diluted earnings per share is computed by
dividing net income attributable to the Company by the total of the weighted-average number of shares outstanding
during the applicable period, plus the effect of dilutive securities. The computation of diluted earnings per share
excludes the effect of the potential exercise of share-based awards, when the effect of the potential exercise would
be antidilutive.
On the Separation and Distribution Date, the Company distributed 553,082,069 shares to Parent
shareholders in connection with the Spin-off. This amount is based on 566,875,513 Parent shares outstanding at the
Separation and Distribution Date. The 13,793,444 shares not distributed to Parent shareholders are held by the
Company as treasury stock. The treasury stock was contributed for no consideration and is recorded on the balance
sheet with no cost basis. The calculation for basic and diluted earnings per share for any period presented prior to the
Spin-off were based on the number of shares outstanding on the Separation and Distribution Date and have been
retrospectively presented. For periods prior to the Spin-off, it is assumed that there are no dilutive equity instruments
as there were no Company share-based awards outstanding at the time.
The calculation of basic and diluted earnings per sharefor the three and nine months ended September 30,
2025 and 2024 was as follows:
| For the three months ended September 30, | For the nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions, except per share data) | 2025 | 2024 | 2025 | 2024 |
| Numerator: | ||||
| Net income | $543 | $552 | $884 | $981 |
| Net loss attributable to noncontrolling interest | 2 | 1 | 3 | 2 |
| Net income attributable to the Company | $545 | $553 | $887 | $983 |
| Denominator: | ||||
| Basic weighted-average number of shares outstanding | 553.1 | 553.1 | 553.1 | 553.1 |
| Dilutive effect of share-based awards | 0.8 | — | 0.3 | — |
| Diluted weighted-average number of shares outstanding | 553.9 | 553.1 | 553.4 | 553.1 |
| Earnings per share | ||||
| Basic | $0.99 | $1.00 | $1.60 | $1.78 |
| Diluted | $0.98 | $1.00 | $1.60 | $1.78 |
Note 21. Share-based compensation
Prior to the Spin-off, key employees of the Company participated in Parent’s share-based compensation
plans. All awards granted under these plans were based on Parent’s ordinary shares. Prior to the Spin-off, share-
based compensation expense was allocated to the Company based upon the portion of the Parent’s share-based
compensation plans in which the Company employees participated.
At the time of the Spin-off, each outstanding Parent performance stock option, performance share unit, and
restricted share unit held by a Company employee were converted into Company awards using a formula designed
to preserve the intrinsic value of the awards immediately prior to and subsequent to the Spin-off. The converted
awards will continue to vest over the original vesting period, which is generally three years from the grant date for
performance share units and restricted share units, andfive years from the grant date for performance stock options.
The incremental compensation expense related to the conversion of the share-based awards was immaterial to the
financial statements.
Effective June 23, 2025, the Company established the Amrize Ltd 2025 Omnibus Incentive Plan (“2025
Plan”). A total of 25,500,000 shares are authorized for issuance under the 2025 Plan. The 2025 Plan provides for the
grant of share options (including Incentive Stock Options and nonqualified stock options), Restricted Stock Units
(“RSUs”), Performance Share Units (“PSUs”), andother share-based awards.
During the third quarter of 2025, the Company granted RSUs representing 82,261 ordinary shares of the
Company. Each RSU entitles the recipient to receiveone share of common stock upon vesting. These RSUs cliff
vest on specified dates. During the third quarter of 2025, the Company granted PSUs representing 656,544 ordinary
shares of the Company at target performance levels. These PSUs cliff vest in March 2028. The number of ordinary
shares of PSUs to be received upon vesting will be determined based on the relative achievement ofperformance
metrics. PSUs are based on internal financial performance metrics or total shareholder return relative to a peer
group.
The fair value of RSUs and PSUs based on internal financial performance metrics is determined using the
closing price of the Company’s Common Stock at grant date. For PSUs that include a market condition, the
Company measures the fair value using a Monte Carlo simulation.
Compensation expense is recognized over the vesting period for time-based awards. For PSUs based on
total shareholder return, compensation expense is recognized whether or not the market condition is attained, as long
as the service condition is met. For PSUs based on internal financial performance metrics, compensation expense is
recognized over the service period only if it is probable that the performance condition will be achieved. The
Company reassesses the probability of vesting at each reporting period and adjusts the compensation expense based
on its probability assessment. We have elected to recognize forfeitures as an adjustment to compensation expense in
the same period as the forfeitures occur. Expense is recorded in Cost of revenues and Selling, general and
administrative expenses, as incurred.
Total share-based compensation expense for the three and nine months ended September 30, 2025 and 2024
and the respective incometax benefit recognized was immaterial to these unaudited condensed consolidated
financial statements.
Note 22. Subsequent events
The Company has evaluated subsequent events occurring through to the date the unaudited condensed
consolidated financial statements were issued. Based upon this review, the Company did not identify any subsequent
events that would have required adjustment or disclosure in the unaudited condensed consolidated financial
statements except as disclosed in the notes elsewhere.
Item 2. Management’s Discussion and Analysis of Financial Condition and
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.