Background and Relevance of Holcim
Holcim, a leading Swiss cement manufacturer, has successfully completed the spin-off of its North American business, Amrize. Starting Monday, June 21, 2023, Amrize shares will trade under the ticker symbol ‘AMRZ’ on the SIX Swiss Exchange and the New York Stock Exchange.
The Spin-off Process
Holcim executed the separation through a stock dividend distribution, issuing one Amrize share for each Holcim share outstanding at the close of trading on June 20, 2023.
Benefits for Holcim and Amrize
As independent, publicly-traded companies, Holcim and Amrize are expected to benefit from more precise strategic and operational focuses, with dedicated executive teams capitalizing on unique opportunities in their respective markets. Holcim aims to leverage powerful long-term trends shaping the future of construction, creating significant growth opportunities and superior value for people, customers, and shareholders.
Amrize’s Opportunities in the North American Construction Market
Jan Jenisch, President and CEO of Amrize, stated that as an independent, publicly-traded company, Amrize will capitalize on the attractive North American construction market driven by long-term trends such as infrastructure modernization, manufacturing decentralization, data center expansion, and the opportunity to address the housing affordability gap.
“We are perfectly positioned to be the preferred partner for professional North American builders and generate value for all stakeholders,” Jenisch assured.
Amrize’s Financial Performance
In 2024, Amrize generated $11.7 billion in revenue with a compound annual growth rate (CAGR) of 13% since 2021. The company achieved $3.2 billion in adjusted EBITDA, a CAGR of 16% since 2021, and maintained an overall adjusted EBITDA margin of 27%.
- $1.7 billion in free cash flow was generated in 2024.
Amrize’s Operations and Workforce
With over 1,000 plants and 19,000 employees, Amrize serves clients across all U.S. states and Canadian provinces.
Key Questions and Answers
- What is Holcim? Holcim is a Swiss cement manufacturer and global leader in the building materials industry.
- Why did Holcim spin off Amrize? The separation allows both companies to focus on their respective markets and capitalize on unique opportunities, enhancing strategic and operational precision.
- What are the growth prospects for Amrize? Amrize aims to leverage long-term construction trends, such as infrastructure modernization and data center expansion, to drive growth and create value for stakeholders.
- How does Amrize’s financial performance look? In 2024, Amrize generated substantial revenue and adjusted EBITDA with strong margins, along with significant free cash flow.
