Cement volumes clearly up (+23.0%), thanks to the inclusion of Brazil in the scope of consolidation; slight growth in the ready-mix concrete business (+3.9%)

Rather stable trend in deliveries on a like-for-like basis: shipments slowed down in the United States, but remained solid in Eastern Europe and showed signs of recovery in Central Europe

Consolidated net sales at €972.2 million, up 8.7% on 2024 (+0.3% like for like)

 

Consolidated figures		2025	2024	25/24
Cement sales	t/000	6,378	5,187	+23.0%
Ready-mix concrete sales	m3/000	2,181	2,100	+3.9%
Net sales	€/m	972	894	+8.7%
		Mar 25	Dec 24	Change
Positive net financial position	€/m	755	755	0

 

The Board of Directors of Buzzi SpA has met today to briefly examine the economic performance during the first three months of 2025 as well as the net financial position at the end of the first quarter.

In the first quarter of 2025, the group recorded a significant increase in sales volumes compared to the previous year, mainly due to the contribution of Brazilian operations, despite the deconsolidation of Ukraine. Excluding the aforementioned changes in scope, cement deliveries remained broadly stable, reflecting highly diverse trends across the various reference markets. Adverse weather conditions and a subdued demand development, as a matter of fact, negatively impacted activity in the United States, while in Central Europe sales resumed growth compared to the particularly weak levels of the previous year. The disposal of the Fanna plant led to a reduction in volumes in Italy, whereas Eastern Europe experienced favorable delivery trends across all countries where the group operates.
Looking at the consolidated results, in the first three months of the year, sales volumes increased by 23.0% in the cement sector and to a lesser extent in the ready-mix concrete segment (+3.9%).
Selling price variances, however, made a marginal contribution to the improvement of net sales for the quarter.
During the winter months, the global economy showed signs of deceleration, with a particularly marked slowdown in the United States, where business and consumer decisions were influenced by the growing climate of uncertainty. In April, the US administration announced the introduction of new tariffs, signaling a significant shift in trade strategies, with negative impacts on the outlook for international trade, increased volatility in financial markets and a weakening of the dollar against major currencies. In this context, following the increase recorded in February, oil and gas prices declined, reflecting expectations of lower global demand. The International Monetary Fund recently revised its global GDP growth forecast downward, targeting a rate of 2.8% for 2025, which remains highly vulnerable to the future of international relations.
In the United States, the consumer-driven momentum that supported growth throughout 2024 weakened at the beginning of the year. The manufacturing sector showed rather subdued performance, while short-term indicators in the services sector, although still above the expansion threshold, indicated a gradual deterioration. This trend is likely due to expectations of possible cuts in public spending, as well as inflationary risks stemming from trade tensions. Prior to the implementation of protectionist measures, in March, the inflation rate had fallen to 2.4%, thanks largely to contributions from the services sector, energy and a slowdown in the housing market. The most recent forecasts project GDP growth of 1.8% for 2025.
In the Eurozone, high-frequency indicators suggest still limited economic activity in the first quarter. The services sector continued to expand, manufacturing showed signs of recovery, while investment remained weak. The construction industry also experienced modest growth, supported by a slight improvement in the real estate market tied to the gradual easing of monetary policy. Inflation remained slightly above 2% and GDP growth for 2025 is projected at 0.8%.
In Italy, preliminary data estimate a slight GDP increase, driven by renewed growth in both services and manufacturing, as well as a stronger trend in construction, particularly with regard to non-residential investments. Exports rose in the early months of the year, likely in anticipation of tariff measures. Employment also strengthened, while the volatility in energy prices led to a slight rise in inflation in March (+2.1%). GDP in 2025 is expected to increase moderately (+0.4%).
Among emerging countries, Brazil’s economic activity and labor market remained solid, although leading indicators suggest a gradual slowdown in the development of the services sector, industry and employment. In contrast, early-year data from Mexico indicate a further weakening of the economy, with declining industrial activity in construction and mining, stagnant domestic demand and sluggish growth in manufacturing.
With regard to monetary policy decisions, during the winter months, the European Central Bank implemented three further consecutive interest rate cuts. Conversely, the US Federal Reserve paused its monetary easing, keeping rates unchanged during the quarter. In Brazil, on the contrary, the last two meetings resulted in hikes in the benchmark interest rate, whereas in Mexico, the central bank maintained an expansionary stance, lowering rates twice in January and March.

In this context, cement and clinker sales of the group, in the first quarter of 2025, reached 6.4 million tons, clearly expanding (+23.0%) compared to the previous year. Ready-mix concrete sales also closed on the rise, at 2.2 million cubic meters (+3.9%).
Consolidated net sales stood at €972.2 million, up 8.7% compared to €894.4 million in 2024, benefiting both from changes in the scope of consolidation (€62.4 million) and the favorable foreign exchange rate effect (€12.4 million). At constant exchange rates net sales would have been substantially stable (+0.3%). Net sales breakdown by geographical area is as follows.

million euro	2025	2024	∆ %	∆ % lfl
Italy	192.1	190.9	+0.7	+0.7
United States of America	355.2	367.2	-3.3	-6.3
Germany	169.9	1703	-0.2	-0.2
Luxembourg and Netherlands	45.3	41.1	+10.1	+14.8
Czech Republic and Slovakia	38.1	36.3	+4.8	+4.8
Poland	41.2	28.2	+46.0	+41.6
Brazil	80.8	0.0	n.s.	n.s.
Ukraine	0.0	16.7	n.s.	n.s.
Russia	59.7	52.1	+14.6	+14.3
Eliminations	(10.1)	(8.5)
	972.2	894.4	+8.7	+0.3
Mexico (100%)	225.7	267.7	-15.7	-1.8

 

The positive net financial position at the end of the quarter amounts to €755.3 million, versus €755.2 million at 2024 year-end. During the period under review the company incurred capital expenditures of €223.3 million (€106.2 million in 2024), increasing mainly due to equity investments, which include the purchase of the remaining minority stake in Nacional Cimentos Paraíba in Brazil, the acquisition of 37.6% of the share capital of Gulf Cement Company in the United Arab Emirates, as well as the subscription of a capital increase to acquire a 25% stake in Alpacem Zement Austria. It is worth noting, however, that the consideration for the Brazilian transaction was already included in the net financial position of the end of 2024 and that the investment in Austria is part of the broader strategic partnership agreement in the Alpe-Adria region, which also included the sale by Buzzi of the Fanna plant to Alpacem Cementi Italia.

Italy
Our hydraulic binders and clinker sales declined during the quarter due to the disposal of the Fanna plant and the resulting reduction in the scope of operations in the country. Net of this effect, however, demand showed resilient dynamics, with sales volumes posting a moderate increase in both cement and ready-mix concrete. Unit selling prices also recorded a slight strengthening at the beginning of the year. Overall, net sales amounted to €192.1 million, in line with the result achieved in the first quarter of last year (€190.9 million, +0.7%).

United States of America
In the early months of the year, adverse weather conditions hindered activity across most of the country, resulting in a marked decline in our cement sales for the quarter compared to the previous year, despite a slight recovery in March in the River region and the Southeastern states. In contrast, the ready-mix concrete sector experienced a more dynamic rebound toward the end of the quarter, leading to a slight year-over-year increase in sales volumes. Average prices in local currency remained largely unchanged. Thus, overall net sales came in at €355.2 million, down 3.3% compared to €367.2 million achieved in the same period of 2024, despite the strengthening of the dollar (+3.1%): as a matter of fact, at constant exchange rates net sales would have been down 6.3%.

Central Europe
In Germany, our sales volumes began to recover from the particularly low levels recorded in the previous year, both in cement and, to a lesser extent, in ready-mix concrete. Average selling prices remained relatively stable at the start to the year; however, due to a carry-over effect, they had an unfavorable impact on the quarterly net sales. Thus, the turnover reached €169.9 million, in line with last year (-0.2%, compared to €170.3 million in the first quarter 2024).

In Luxembourg and the Netherlands, our cement deliveries also resumed growth during the winter months after the significant decline recorded in the previous year, further supported by strengthened activity in neighboring countries. Ready-mix concrete volumes, on the other hand, showed less volatility, still reflecting the change in the scope of consolidation following the divestment of operations in France. Despite a year-on-year decline in selling prices, mainly due to a carry-over effect, the delivery dynamics enabled the quarter to close with net sales at €45.3 million, up 10.1% compared to 2024 (€41.1 million).

Eastern Europe
In the Czech Republic, cement volumes showed a moderately positive trend during the quarter, accompanied by a modest year-on-year increase in average prices. The growth was even more evident in ready-mix concrete sales, including in Slovakia. As a result, net sales amounted to €38.1 million, up 4.8% compared to the previous year (€36.3 million), even at constant exchange rates, thanks to the limited volatility of the local currency during the reporting period.

In Poland, our cement deliveries recorded a significant increase during the winter period, driven by strong domestic demand, the comparison with a particularly weak start to 2024 and the subsequent rebalancing of the commercial strategy in the country. This dynamic led to a year-on-year decline in average selling prices in local currency due to a carry-over effect, despite a moderate strengthening compared to the end-of-2024 levels. In the ready-mix concrete sector, volumes also showed a positive trend during the quarter. Therefore, net sales increased from €28.2 to €41.2 million (+46.0%), including the benefit from the appreciation of the Polish zloty (+3.0%). At constant exchange rates, as a matter of fact, the turnover would have been up 41.6%.

In Russia, the local management presiding over the business states a favorable trend in sales volumes in the first three months of the year, with average prices in local currency showing a still significant year-on-year increase. Therefore, net sales stood at €59.7 million, up 14.6% versus €52.1 million achieved in 2024. The fluctuations of the ruble (+0.3%) had a limited impact on the quarterly turnover.

As a result of the sale of our assets in Ukraine, which was completed last October, overall Eastern Europe turnover includes an unfavorable variance of €16.7 million in the first quarter, due to the resulting decrease in the consolidation scope.

Brazil
In line with the solid trend in demand, sales volumes increased in the first quarter compared to the same period last year, also thanks to rather favorable weather conditions. Selling prices in local currency slightly strengthened. However, net sales in euros decreased by 10.5%, from €90.3 million in 2024 to 80.8 million in 2025, due to the depreciation of the Brazilian real (-14.7%).
The Brazilian operations were included in our consolidation scope starting from the fourth quarter of 2024.

Mexico (valued by the equity method)
Our joint venture closed the quarter with a slight decline in cement deliveries, due to a slowdown in both public and private construction projects, which had already become evident at the end of last year. The decline was even more pronounced in the ready-mix concrete sector, affected by the challenging competitive environment. Conversely, average selling prices in local currency strengthened in both cement and concrete, confirming a solid year-on-year improvement. With reference to 100% of the joint venture, net sales amounted to €225.7 million, down 15.7% compared to €267.7 million recorded in 2024. The depreciation of the Mexican peso (-16.5%) negatively impacted the translation into euro: at constant exchange rates, as a matter of fact, net sales would have decreased by 1.8%.

Outlook
The beginning of the year showed rather weak delivery trends in the United States and a more dynamic performance in Europe. However, we believe that the overseas result was mainly due to weather conditions and that, at least partially, the slowdown may be recovered in the coming quarters. By contrast, the Central and Eastern European countries benefited from a comparison with a rather difficult start to 2024, whereas the second half of the year is expected to present a much more challenging basis.

These dynamics essentially appear to confirm the expectations outlined during the release of the annual results. Over the course of the year, deliveries should stabilize in the United States, thanks to the still strong support from the infrastructure sector. In Italy, resilient demand is also expected to persist in the coming quarters, driven by PNRR-related projects. In Central Europe, despite the good rebound, we continue to expect a substantial consolidation of sales volumes, while results in Eastern Europe appear consistent with a solid evolution of demand. In Brazil, the latest market forecasts align with our growth assumptions, although with gradually normalizing rates throughout the year. In Mexico, on the other hand, we foresee a slowdown in construction activity, as already indicated by the outcome of the first quarter.

In light of the above considerations and the new scope of consolidation, we believe it is reasonable, on this occasion, to confirm the outlook provided in the end-of-March release, namely that the current year may close with operating results approaching the excellent levels achieved in 2024. However, international developments have contributed to increasing the degree of uncertainty surrounding global economic prospects and possible industry trends remain exposed to predominantly downside risk factors. This is evident, for example, in the United States, where the official market forecasts published by the American Cement Association (ACA) have been revised downward and the dollar has weakened against the euro.

 

Senior notes and bonds
The Board of Directors has approved the issuance of a non-convertible bond loan with a total nominal value of up to €150 million, intended exclusively for qualified investors (excluding the United States of America or any other jurisdiction where the offer of securities would be unlawful). The objective is to secure adequate financial resources to meet the company’s ordinary operating needs. An application will be submitted for the bond’s admission to trading on Euronext Access Milan – Professional Segment, a multilateral trading facility organized and managed by Borsa Italiana SpA.

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The notes will only be offered and sold outside the United States to institutional investors that are non-U.S. persons under Regulation S and have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), or any other securities laws. The notes may not be offered or sold in the United States, or to, or for the account or benefit of, US persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell the notes or an offer of financial products, nor shall there be any sale of the notes in any state or jurisdiction in which such an offer or sale would be unlawful. No action has been or will be taken to permit a public offering of the notes in any jurisdiction. This press release is not an offer of securities for sale or an offer of financial products in the United States or any other jurisdiction. The securities of the Issuer may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) unless registered under the Securities Act or pursuant to an exemption from such registration. The offering of the notes has not been cleared by the Commissione Nazionale per le Società e la Borsa (CONSOB), pursuant to Italian securities legislation. Accordingly, the notes have not been and will not be offered, sold or delivered in the Republic of Italy in a public offering (‘offerta al pubblico’) except in circumstances which are exempted from the rules on public offerings pursuant to Italian applicable laws and regulations, and the notes may only be offered, sold or delivered in the Republic of Italy  in compliance with all applicable Italian laws and regulations. 
In the Republic of Italy, the notes may not be offered, sold or distributed to the public except to qualified investors, as defined pursuant to Article 2 of Regulation (EU) 2017/1129 as amended (the ‘Prospectus Regulation’) and any applicable provision of Legislative Decree No. 58 of February 24, 1998, as amended (the Financial Services Act) and Italian CONSOB regulations.
In member states of the European Economic Area (the ‘EEA’), this press release is directed only at persons who are ‘qualified investors’, as defined pursuant to Article 2 of Regulation (EU) 2017/1129. This press release is an advertisement and does not constitute a prospectus for the purposes of the Prospectus Regulation. 
In United Kingdom (the ‘UK’), this press release is directed only at persons who are ‘qualified investors’ within the meaning of Regulation (EU) 2017/1129 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (EUWA) (the ‘UK Prospectus Regulation’). This press release is an advertisement and does not constitute a prospectus for the purposes of the UK Prospectus Regulation. This press release is directed only (i) at persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended or (ii) at persons falling within Article 49(2) (a) to (d) (‘high net worth companies, unincorporated associations, etc.’) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (all such persons together being referred to as ’relevant persons‘). This press release must not be acted on or relied on by persons who are not relevant persons. Any investment activity to which this press release relates is reserved for relevant persons only and may only be engaged in by relevant persons. 
Manufacturer target market (MIFID II product governance) consists exclusively of eligible   counterparties and professional clients, each as defined in directive 2014/65/EU (as amended), and all channels for distribution of the notes that are appropriate for eligible counterparties and professional clients. No PRIIPs key information document (KID) has been prepared as the notes are not intended to be offered, sold or otherwise made available to any retail investor in the EEA and/or in the UK.

NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW.

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Alternative performance measures
Buzzi uses in its financial disclosure some alternative performance measures that, although widespread, are not defined or specified by the accounting principles. Set out below is the definition of the measures which have been used in this disclosure.

Net financial position: it is a measure of the capital structure determined by the difference between financial liabilities and assets, both short and long term; under such items are included all interest-bearing liabilities or assets and those connected to them, such as derivatives and accruals.

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The manager responsible for preparing the company’s financial reports, Elisa Bressan, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

Company contacts:
Investor Relations Assistant
Ileana Colla
Phone: +39 0142 416 404
Email: ileana.colla@buzzi.com