Holcim spin-off Amrize plans 8-11% adjusted EBITDA growth through 2028
ZURICH (Reuters) - Holcim's North American spin-off Amrize is targeting annual growth in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about 8-11% between 2025 and 2028, the building materials company said on Tuesday.
The listing of Amrize remains on track by the end of the first half of 2025, the company said in a statement ahead of its investor day in New York. The company is planning annual revenue growth of about 5-8% over the 2025-2028 period, it said.
The separation is likely to be one of the biggest deals in the global construction industry. The company targeted a $30 billion valuation when it was first announced in January 2024.
In 2024, Amrize generated $11.7 billion in revenue, equivalent to an annual growth rate of 13% since 2021, a year when the global economy rebounded strongly from the impact of the COVID-19 pandemic.
Adjusted EBITDA was $3.2 billion last year, making for annual growth of 16% since 2021.
The business, which has more than 1,000 sites across the United States and Canada and 19,000 employees, is the largest cement manufacturer in North America.
Still, the U.S. construction market is experiencing difficulties with high interest rates weighing on residential and commercial construction projects, while high inflation is reducing the impact of government infrastructure projects.
(Writing by Dave Graham, Editing by Friederike Heine)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
High Dividend, Monthly Payouts: An 8.7% Opportunity
Written by Christopher Liew, CFA at The Motley Fool Canada The oil and natural gas industry is a major source of government revenues and a vital part of Canada's economy. Based on data from the Canadian Association of Petroleum Producers, the sector accounted for 3% of the country's gross domestic product (GDP) in 2024. Moreover, oil, natural gas, and refined products account for approximately 20% of Canada's balance of trade. Energy stocks are also popular among investors due to their generous dividends and potential to generate additional returns from rising oil and gas prices. A buying opportunity today, if not a total package for income seekers, is Freehold Royalties (TSX:FRU). Besides the high 8.7% dividend yield, the payout frequency is monthly. The $2-billion royalty oil and gas company owns about 6.1 million acres of land in Canada. In the U.S., its land base is approximately 1.2 million gross drilling acres and continues to expand. As a royalty-interest owner, it benefits from industry drilling activities on the lands subject to the royalty. Freehold receives royalty income from more than 380 industry operators. It manages the assets but spends zero on well operations, maintenance, production, and land restoration to its original state. Operators pay all related costs, while Freehold focuses on business development and accretive acquisitions. Management believes that Freehold is uniquely positioned as a leader in North American energy royalties. Around 25% of key royalty payors have a market capitalization of $10 billion. Top operators or drillers include Exxon Mobil, ConocoPhillips, Canadian Natural Resources, and Tourmaline Oil. Freehold is committed to delivering income growth and durable returns through strategic expansion and targeted acquisitions. The strategy is to concentrate on high-margin and long-duration royalties. Additionally, collaborating with investment-grade operators that have long-term perspectives is advantageous. Regarding inventory life, the Canadian side is 40 years and the U.S. portion is 30 years. Future optionality includes the expansion of geologic zones, improved drilling, and the discovery of other minerals or metals. In Q1 2025, Freehold reported a 23% year-over-year increase in royalty and other revenue to $91.1 million. The 14 and 11 new leases signed in Canada and the U.S. contributed $3.9 million in revenue. Net income and cash flow from operations rose 10% and 20% to $37.3 million and $62.9 million compared to Q1 2024. Its President and CEO, David M. Spyker, said, 'Freehold's Q1-2025 production of 16,248 barrels of oil equivalent per day (boe/d) is at the highest levels in our corporate history, in step with the high-quality acquisition work completed in late 2024. Spyker added, 'The deliberate and strategic build out of our North American royalty portfolio has resulted in a balanced revenue base with Canada contributing 46% of revenue in Q1-2025 and the U.S. contributing 54%. The industry is in excellent shape to manage commodity price volatility due to the capital discipline and prudent balance sheet management approach over the past number of years.' Freehold has been paying monthly dividends (no fail) since April 1998. The current share price is $12.27, while the regular monthly dividend remains fixed at $0.09 per share for now. A $13,730 investment today transforms into $100 in monthly passive income. The post High Dividend, Monthly Payouts: An 8.7% Opportunity appeared first on The Motley Fool Canada. Before you buy stock in Freehold Royalties Ltd., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Freehold Royalties Ltd. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Freehold Royalties, and Tourmaline Oil. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
35 minutes ago
- Yahoo
Is Carnival's Big Growth Spurt Over?
Carnival's cruise business was shut down during the coronavirus pandemic. It has experienced strong growth since the world got used to living with COVID-19. Carnival expects to have another good year in 2025, but next year's comparisons might be less impressive. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL) went from a full stop to full speed ahead, and the result was, as you might expect, a dramatic improvement in its business performance. But what happens now that the cruise line is at the top of its game? Here's what's happened and why 2026 could be a much less impressive year for Carnival. Carnival operates nine branded cruise lines, including its namesake brand. It is one of the largest cruise ship owners and operators on the planet. Cruise lines have two main sources of revenue. The first is the fares passengers pay to get on the boat. The second is the spending they do while on the ship. The cruise ships Carnival operates are like floating resorts. You pay for a room, and then you pay for all the other stuff you want to do. Some food and entertainment are included in the cruise cost, but plenty of add-ons are available. That said, Carnival doesn't see a dime of income if its ships aren't running. And that's exactly what happened during the early stages of the coronavirus pandemic. Cruise ship passengers are always at some risk of catching contagious diseases, but the risks presented by COVID-19 were so extreme that governments shut down the industry. The last few years have seen impressive business performance from Carnival because of that shutdown. The chart above shows the trailing-12-month revenues and earnings per share for Carnival. It tells the story pretty clearly. Revenues fell to zero and then recovered. Earnings fell deep into the red and then recovered. In fact, the inflation coming out of the pandemic has actually helped out here because the cost of other vacations, such as trips to amusement parks, have increased to the point where cruises look like a relative bargain. At this point, Carnival's 2025 cruises are fairly well booked, so this should be another decent year. But two problems are likely to start showing up more clearly in 2026. First, the rebound from zero revenue seems to have largely played out. Further improvement will require continued strong execution. For example, revenue rose to a record level in the first quarter of 2025. But the year-over-year rise was dramatically smaller than in the first quarter of 2024. The boom years are likely over, and continuing to move the needle will be much harder from here. Second, Carnival added a significant number of new ships leading up to 2024. More ships mean more ability to increase revenue. And new ships often bring renewed interest from customers, too. Between 2025 and 2028, there won't be nearly as many new ships, so this growth lever won't be as powerful. Price increases (for both the cruise and onboard spending) will still improve the top line of the income statement, but they may keep some customers away. There is a silver lining in all of this, however. Carnival took on debt after the pandemic. Buying ships is costly, and so is paying to maintain a business that isn't generating any revenue. The pullback on new ships will allow the company to more quickly reduce its leverage. That is a good thing, and falling interest costs should help the company's bottom line. That said, Carnival's top line in 2026 could be far less exciting than it has been recently. And emotional investors may see that as a big negative, even as Carnival works to improve its balance sheet. If you own Carnival or are looking at the stock, remember that the growth coming out of the pandemic was an anomaly. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy. Is Carnival's Big Growth Spurt Over? was originally published by The Motley Fool
Yahoo
37 minutes ago
- Yahoo
Red Lobster's 36-year-old CEO started as a Goldman Sachs intern. He reveals 3 bold moves he's cooking up for the seafood chain's comeback
Red Lobster CEO Damola Adamolekun came from a private equity and finance background, breaking into the restaurant industry through a successful deal he navigated. The former P.F. Chang's CEO outlined the changes he's enacting to save the beleaguered seafood chain from bankruptcy and to make it the beloved brand it once was. Damola Adamolekun reached the pinnacle of restaurant leadership in a somewhat unconditional way. Although the Red Lobster CEO waited tables back in high school, his first big career move was landing an internship with global investment bank Goldman Sachs at age 19. At the time, Adamolekun was a student athlete at Brown University, where he studied economics and political science. He continued to work as an analyst with Goldman Sachs following graduation for a couple of years, then moved on to become a private equity associate with TPG Capital, where he worked until 2015. But Adamolekun's big break came while he was a partner at hedge fund Paulson & Co., which now operates as a family office. In 2019, Paulson purchased Asian-inspired restaurant chain P.F. Chang's in a $700 million deal. Adamolekun said during a podcast episode of The Breakfast Club that he was the one who pitched the idea to buy P.F. Chang's to the firm. 'I thought we could do a lot of new things with it. We could add delivery, we could remodel the restaurants. We could make it more interesting,' Adamolekun said. The deal was successful—until the pandemic hit, wiping out restaurant and retail businesses. The P.F. Chang's CEO even stepped down during COVID, and Adamolekun had to 'rescue the situation,' he said. And with that, Adamolekun stepped in as CEO, officially charting his path to become a revered restaurant executive. The P.F. Chang's deal 'ended up being a really good deal, but not without a lot of blood, sweat, and tears for a few years,' Adamolekun said. He masterminded a plan to remodel the chain's restaurants and revamp the menu—and is largely using the same playbook as CEO of Red Lobster. Adamolekun, 36, took over as CEO of Red Lobster in September, as the seafood chain was crawling from the ashes of bankruptcy. He has a three-pillar roadmap for reviving Red Lobster, particularly in the aftermath of its endless-shrimp debacle. One of the biggest mistakes Red Lobster made was its endless-shrimp promotion. Because guests took advantage of the bonkers deal by consuming pound after pound of shrimp, the seafood chain ended up losing millions of dollars. So, needless to say, Adamolekun is steering clear of any future bottomless-shrimp promotions in the future. Instead, he's focused on revamping the seafood chain's menu. 'There's a lot of chain restaurants, [but] there's only one that serves lobster and crab the way we do,' Adamolekun told The Breakfast Club. The seafood chain is leaning into that differentiator, and one new crab dish has become Adamolekun's favorite. Adamolekun's master plan for reinvigorating Red Lobster includes remodeling the chain's 545 restaurants. But remodeling at that scale takes time—and money. For now, Adamolekun has implemented small changes, like changing up the music diners listen to while at the restaurant. 'We fix the things we can fix quickly,' he said during the podcast. 'The music is better.' The restaurant chain has also printed market prices for lobsters on table liners, and will continue to implement 'small things you can do now.' 'But comprehensively there needs to be a remodel…and that's something that we'll do in the future, I think,' Adamolekun said. Another cost-effective way the restaurant chain is making incremental improvements is through service and hospitality changes. Service workers are expected to greet guests more quickly and be more attentive. And Red Lobster has already seen tangible improvements from service changes. The restaurant chain tracks a sentiment score, which is a net positive versus negative sentiment, Adamolekun explained, or what people are saying is good versus bad at Red Lobster. The sentiment score was only 30 when he first took over, but last month it had doubled to 60, Adamolekun said during the podcast. 'When you go to Red Lobster next, you'll see it's going to feel different,' Adamolekun told The Breakfast Club. A version of this story originally published on on February 26, 2025. This story was originally featured on
