Buzzi Unicem S.p.A.

Buzzi said first-half turnover stabilized at roughly last year’s level. Cement volumes were reported 5.4% above last year, while ready-mix volumes were about 4% below. EBITDA declined to EUR 483 million from EUR 526 million year over year, with management citing scope, currency, weaker volumes, and higher fixed costs. Net cash position was EUR 896 million at the end of June, after EUR 200 million of share buybacks were completed by July 17. Full-year EBITDA guidance was set at EUR 1.1 billion to EUR 1.2 billion. CO2 cost for the full year was kept at about EUR 35 million to EUR 40 million. CapEx was said to be likely around EUR 550 million to EUR 560 million for the year, with some possibility of EUR 600 million but not much beyond that. Management said H2 trends should be broadly consistent with H1, slightly better in some areas, but not a major turnaround.

Pietro Buzzi struck a cautiously upbeat tone, saying the first half was “not as good as the previous 2 years” but still “pretty sound” and supported by solid cash generation and flexibility. He emphasized that the business is being helped by favorable pricing in several markets, especially Italy and Brazil, and that the group is positioned to navigate uneven demand by geography. He also said the company is more focused on improving its industrial footprint and internal execution than chasing expensive M&A.

The financial message was that margins weakened, but the drivers were identifiable and partly temporary. Management walked through the EBITDA bridge from EUR 526 million to EUR 483 million, highlighting a negative volume effect, favorable price mix, EUR 9 million of FX impact, and around EUR 15 million of other unfavorable items including inventory adjustment; CO2 cost was not yet visible in H1, but the full-year expectation remains EUR 35 million to EUR 40 million. Cash flow was pressured by working capital, especially inventory, receivables, and payables, but the company ended June with EUR 896 million of net cash after EUR 200 million of buybacks, and management expects H2 working capital to reverse some of the H1 drag.

Analysts focused on whether price/cost pressure could worsen in H2, the implications of EU ETS changes, M&A appetite, Brazil growth, U.S. data centers, tariffs, CapEx, hedging, and cash flow. Management said European power costs should remain supported by subsidy-style programs, while fuel remains volatile and must be offset through more waste-derived fuels; they viewed the EU ETS proposal as a small step in the right direction but too early to judge in detail. On M&A, management said they are open but cautious, given high U.S. multiples, and prefer also to invest in vertical integration and plant modernization. They also said U.S. prices may improve slightly by year-end, July volumes were slightly up, tariff changes were not materially impactful, and cash generation should improve in H2 as working capital normalizes.