Residential roofing demand remained soft in late 2025, weighing on Amrize’s fourth-quarter results, while commercial repair and refurbishment work continued to provide stability.

Amrize reported a difficult fourth quarter for its roofing business as residential demand remained weak. Building Envelope revenue fell 11.8% year over year to $678 million, while adjusted EBITDA declined 23.5% to $130 million. Results were further affected by an $8 million increase in warranty provisions.

On the earnings call, executives said the decline was driven largely by softer residential roofing demand and higher claims activity. “Building Envelope adjusted EBITDA was down year over year, largely due to softer residential roofing demand and an $8 million increase in warranty provisions to reflect claims activity in our residential roofing business,” said Amrize CFO Ian Johnston.

Commercial roofing provided a partial offset. The company said margins improved in the quarter, supported by resilient repair and refurbishment activity. Amrize expects that strength to continue into 2026, projecting low-single-digit volume growth in commercial roofing driven by steady demand for repair and replacement work.

Residential roofing is expected to remain under pressure. Amrize forecasts flat volumes in 2026, with improvement anticipated in the second half of the year. The company said lower interest rates could help spur a recovery in new construction, though not before late 2026.

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

Despite near-term headwinds, Amrize is expanding capacity. The company plans to commission 50% additional shingle production at its Malarkey plant in Indiana by the end of 2026, a move aimed at strengthening its position in Midwest and Eastern markets.

Outside roofing, Amrize posted stronger results in its Building Materials segment, where fourth-quarter revenue increased 3.9%, driven by a 3.6% rise in cement volumes and a 3.8% increase in aggregates pricing. Infrastructure projects and data center construction were cited as key demand drivers.

Related: Roofing Industry Q&A 2026: Amrize Building Envelope

For the full year, Amrize reported $11.8 billion in revenue and $3.0 billion in adjusted EBITDA. Chairman and CEO Jan Jenisch described 2025 as a milestone year following the company’s spin-off and expansion across North America.

“When you look at the guidance for 2026, I’m confident this will be a year of accelerating demand from our customers,” Jenisch said on the call, noting continued strength in commercial construction and infrastructure projects.

Amrize ended the year with a net leverage ratio of 1.1x and plans to increase capital expenditures to $900 million in 2026. The company also announced an agreement to acquire West Texas aggregates producer PB Materials, authorized a $1 billion share repurchase program, and proposed both a special one-time dividend and an annual dividend.

Look Ahead

For 2026, Amrize expects commercial roofing volumes to increase in the low single digits, supported by continued strength in repair and refurbishment activity and demand tied to data centers and logistics facilities. Residential roofing volumes are projected to remain flat overall, with improvement anticipated in the second half of the year as lower interest rates potentially support new construction.

“So far in the first quarter, customer demand has improved compared to Q4,” Johnston said, while cautioning that residential new construction recovery will likely be gradual. The company said broader building materials pricing gains and infrastructure activity are expected to provide additional stability heading into the year.

Amrize completed its spin-off from Swiss building materials giant Holcim in June 2025, beginning independent trading on the New York Stock Exchange and the SIX Swiss Exchange under the ticker AMRZ. At launch, the company carried an approximate $30 billion valuation and was described as the second-largest commercial roofing supplier in North America, with a portfolio spanning cement, aggregates and roofing products