Buzzi S.p.A.

Reported H1 2026 turnover was basically unchanged year over year, cement volumes were up 5.4%, ready-mix volumes were down about 4%, EBITDA fell to EUR 483 million from EUR 526 million, and EBITDA was down about 8% versus last year. The company also said the U.S. dollar reduced turnover by about EUR 50 million and net foreign exchange impact on EBITDA was EUR 9 million. Net cash position at June 30 was EUR 896 million. For full-year 2026, management reiterated EBITDA guidance of EUR 1.1 billion to EUR 1.2 billion and said CO2 cost should be about EUR 35 million to EUR 40 million for the year. CapEx was described as likely around EUR 550 million to EUR 560 million for the full year, with some room to be about EUR 600 million if needed.

Pietro Buzzi said the quarter was not as strong as the previous two years, but still “pretty sound” and supported by a stable top line, favorable pricing in many markets and a strong cash position. He emphasized that second-half trends should broadly resemble the first half, with some improvement possible in places like the U.S., Poland and Brazil, while Germany, Russia and parts of Central Europe remain weak. His tone was cautious but constructive, stressing that the business still has flexibility for CapEx, modernization and selective growth.

Management walked through the EBITDA bridge from EUR 526 million to EUR 483 million, citing negative volume, unfavorable fixed costs, EUR 9 million of FX headwind, about EUR 15 million of inventory-related impact, and a EUR 9 million scope contribution from the UAE. On cash flow, the main issue was working capital: inventories, receivables and payables reduced operating cash generation, while buybacks consumed EUR 200 million and left net cash at EUR 896 million. The CFO also noted CapEx was slightly higher than last year but broadly in line with budget, and that H1 CO2 costs were not yet recognized because free allowances covered the period; the full-year expectation remains EUR 35 million to EUR 40 million.

Analysts focused on second-half pricing versus cost pressure, EU ETS changes, M&A, Brazil growth, U.S. demand and data centers, tariffs, CapEx, cash flow and Germany. Management said European power costs should stay supportive, fuel costs are more volatile but can be partly offset by waste-derived fuels, and the EU ETS proposals look like a small step in the right direction because they give more time and some flexibility. On M&A, Buzzi said it remains open but is cautious because some U.S. multiples are very high, and it prefers also to invest in internal footprint improvements; on cash flow, management said working capital should normalize in H2. For the U.S., they said July volumes were slightly up, pricing may improve modestly by year-end, data centers represented almost 10% of U.S. volumes in H1, and the Section 301 tariff changes were not meaningful except that the new Canadian tariff could affect Northeast market dynamics.