Interim results at 30 June 2025
Cement shipments surged (+23.7%), driven by a net positive impact from changes in the scope of consolidation; the ready-mix concrete sector also recorded volume growth (+3.7%)
Despite weak shipments trends in the United States, demand recovery in Central and Eastern Europe drove overall performance
Consolidated net sales at €2,187.4 million (+6.5%), stable like for like (+0.9%); Ebitda at €526.0 million
Ebitda to sales margin improved in Eastern Europe and Benelux, while rising production cost led to margin compression in Italy, Germany and the United States
| Consolidated data | Jan-Jun 2025 | Jan-Jun 2024 | % 25/24 | |
| Cement and clinker sales | t/000 | 14,871 | 12,017 | +23.7% |
| Ready-mix concrete sales | m3/000 | 4,834 | 4,664 | +3.7% |
| Net sales | €/m | 2,187 | 2,054 | +6.5% |
| Ebitda | €/m | 526 | 553 | -4.8% |
| Ebitda recurring | €/m | 526 | 548 | -4.0% |
| Consolidated net profit | €/m | 390 | 422 | -7.6% |
| Jun 25 | Dec 24 | Change | ||
| Positive net financial position | €/m | 691 | 755 | -64 |
The Board of Directors of Buzzi SpA has met today to examine the interim financial report as at 30 June 2025.
During the first half of 2025, global economic activity slowed down, affected by prolonged uncertainty over international trade policies, ongoing geopolitical tensions and the continuation of conflicts in various parts of the world. In the winter months, fears over tariffs temporarily boosted international trade due to an early purchasing campaign by the United States. However, this momentum had already weakened by April–May. In the spring, the manufacturing sector showed rather volatile performance, while the services sector, after an initial phase of weakness, resumed growth at a pace similar to that of the first quarter. In this context, crude oil prices reversed the decline seen at the beginning of the year, impacted by the escalation of the conflict between Israel and Iran. In contrast, natural gas prices in Europe, although subject to sharp fluctuations, ended the quarter decreasing. In light of recent economic developments, in June, the OECD once again revised its 2025 forecasts downward, estimating global GDP growth at 2.9%.
In the United States, the economy contracted at the beginning of the year for the first time since 2022, as a result of a temporary but significant increase in imports. While economic activity is estimated to have resumed expansion in the spring, less encouraging signals are coming from private consumption, which is showing rather weak dynamics. The disinflation process came to a halt in May, although the effects of trade policy have so far remained limited. The Federal Reserve kept interest rates unchanged during the period, due to a still robust labor market and significant uncertainty surrounding the country’s economic outlook.
In the Euro area as well, expectations regarding US tariffs supported foreign demand at the beginning of the year, allowing economic activity during the winter months to exceed expectations (+0.6%), with Italy and Germany among the main beneficiaries. The manufacturing sector showed a marked acceleration in the first quarter, followed by a slowdown in the spring, while the services sector maintained a favorable performance throughout the entire semester. In June, inflation rose slightly to 2%, while core inflation remained stable at 2.3%, in line with the European Central Bank’s expectations. The ECB continued easing monetary policy with two interest rate cuts in April and June.
In Italy, the economic situation continued to show moderate expansion in the first quarter, supported by positive contributions from both foreign demand and domestic consumption. Value added increased in both the industrial and services sectors, while investment activity weakened toward the end of the semester due to the ongoing climate of uncertainty.
Looking at emerging markets, Brazil’s economy recorded a solid start to the year, mainly driven by less cyclical sectors such as agriculture, as well as the resilience of private consumption. However, more recent estimates indicate a gradual slowdown in trade, industry and services, accompanied by rather subdued confidence indicators. In Mexico, on the other hand, stagnant domestic demand and weak performance in the industrial sector have held back the country’s economic growth. In this context, major central banks in Latin America adopted divergent monetary policies during the quarter: interest rates were cut in Mexico over two consecutive sessions, while in Brazil, access to credit worsened due to two interest rate hikes in May and June.
OPERATING AND FINANCIAL PERFORMANCE
Starting from the fourth quarter of 2024, the consolidation scope of the group has undergone significant changes, which overall generated a net positive contribution to the results for the reporting period. It is worth recalling that in October of last year, Buzzi both acquired the remaining 50% stake in its Brazilian joint venture and sold its assets in Ukraine. In addition to these previously disclosed extraordinary transactions, in January, Buzzi executed a strategic partnership agreement in the Alpe-Adria region with the Austrian group Wietersdorfer. This included the sale of the Fanna (PN) cement plant to Alpacem Zement Italia and the subscription of a capital increase to acquire a 25% stake in Alpacem Zement Austria. Furthermore, during the first half of the year, the group entered the United Arab Emirates market, by acquiring a controlling interest in Gulf Cement Company, an entity listed on the Abu Dhabi Stock Exchange.
Net of these scope changes, consolidated cement sales for the first six months of 2025 increased moderately, reflecting a rather subdued demand in the United States, more than offset by a recovery in consumption in Central and Eastern Europe. On the other hand, the net positive contribution from extraordinary transactions allowed our cement deliveries to close the half-year with strong growth (+23.7%), reaching 14.9 million tons. Ready-mix concrete output totaled 4.8 million cubic meters, up 3.7% versus 2024.
Consolidated net sales thus rose from €2,053.6 million to €2,187.4 million (+6.5% compared to 2024). In the first six months of the year, exchange rate fluctuations had a fairly limited impact (-€1.6 million), while changes in the consolidation scope contributed positively by €116.2 million. Like for like, turnover would have remained broadly in line with last year’s results (+0.9%).
Looking at the different regions, in Italy, net sales amounted to €402.5 million, down 2.9%, mainly due to the deconsolidation of the Fanna (PN) cement plant. Net of this effect, revenues would have increased by 2.7%, reflecting resilient demand and stable average selling prices.
In the United States, instead, weaker volumes and the depreciation of the dollar, though still moderate, negatively affected turnover, which stood at €787.1 million, down 5.9% compared to the previous year.
In Central Europe, the recovery in consumption from the particularly depressed levels at the beginning of 2024 was offset by a more challenging comparison in terms of average selling prices. As a result, net sales grew modestly by 1.8%, reaching €471.9 million in the first half of the year.
In Eastern Europe, despite the deconsolidation of assets in Ukraine, revenues remained stable at €346.6 million, mainly due to material growth in deliveries across all countries of operation. On a like-for-like basis, net sales would have increased by 12.7%.
The contribution to the turnover from the line-by-line consolidation of Brazil (for the entire period) and the United Arab Emirates (from May onwards) amounted to €164.8 million and €21.1 million, respectively.
Consolidated Ebitda stood at €526.0 million, down 4.8% compared to €552.7 million of the previous year. The figure for the period under review includes net non-recurring income of €0.4 million (versus €4.5 million in 2024). Excluding this item, recurring Ebitda declined from €548.3 to €526.3 million, with Ebitda to sales margin standing at 24.1% (26.7% in 2024). The Ebitda margin of the first six months strengthened in Eastern Europe, Luxembourg and the Netherlands, benefiting from lower energy costs and improved operating leverage. By contrast, rising production costs weighed on margins in Italy, Germany and the United States. Changes in the consolidation scope had a positive impact of €29.7 million, while exchange rate fluctuations had only a marginal effect.
After amortization of €160.1 million, versus €127.3 million in 2024, Ebit came in at €365.9 million, worsening compared to €425.4 million in 2024. In the year, net financial income rose sharply, from €29.8 million to €120.9 million, due to foreign exchange gains on loans denominated in dollars and, to a lesser extent, the provisional profit from the business combination with Gulf Cement Company (UAE). By contrast, the result from equity-accounted investments declined from €76.3 million to €59.9 million. Profit before taxes amounted to €546.0 million (compared to €535.4 million in the previous year). After income taxes of €156.3 million (€113.5 million in 2024), the net profit came in at €389.8 million, down from €421.9 million in the first half of 2024.
At the end of the period, the positive net financial position amounts to €691.2 million (compared to €755.2 million at year-end 2024). In the six months under review the group paid dividends to shareholders totaling €123.7 million and incurred capital expenditures of €377.9 million, €158.5 million thereof referring to equity investments. These included the purchase of the remaining minority stake in Nacional Cimentos Paraíba in Brazil, the acquisition of a controlling interest in Gulf Cement Company in the United Arab Emirates and the 25% stake in Alpacem Zement Austria. However, the consideration for the transaction in Brazil was already included in the net financial position at the end of 2024 and the investment in Austria is part of a broader strategic partnership agreement in the Alpe-Adria region, which also involved the sale by Buzzi of the Fanna (PN) plant to Alpacem Cementi Italia. Capital expenditures devoted to environmental performance improvements and to decarbonization of the production process, among which we include projects to increase the production of cements with a lower clinker content, the greater usage of alternative fuels and the in-house production of renewable electricity, amounted to approximately €42.7 million.
As at 30 June 2025, total equity, inclusive of non-controlling interests, stood at €6,611.5 million versus €6,605.9 million at 2024 year-end. Consequently, the debt/equity ratio remained stable at 31% compared to December 2024.
RESULTS BY GEOGRAPHICAL AREA
In Italy, the construction market made a solid contribution to economic expansion in the first half of the year, primarily supported by the implementation of projects under the National Recovery and Resilience Plan (PNRR) and, more broadly, the non-residential sector.
In this context, our cement sales declined in the first six months of the year by 9.4%, affected by the exclusion of the Fanna (PN) plant from the consolidation scope. Net of this effect, indeed, cement deliveries remained fairly stable, while ready-mix concrete volumes increased by 5.8% and average selling prices showed a slight year-on-year improvement. Net sales from Italian operations therefore amounted to €402.5 million, down 2.9% compared to the previous year (€414.4 million in 2024). On the other hand, Ebitda fell from €107.9 million to €84.0 million (-22.2%). Excluding the reduction in consolidation scope, net sales would have increased by 2.7%, while the Ebidta decline would have been more contained at -17.0%. A certain inflation in fixed costs and their higher impact on unit production cost were the main causes of this deterioration. Non-recurring expenses for the period amounted to €0.4 million (in line with 2024), bringing recurring Ebitda from €108,3 million to 84.3 million. Furthermore, the period's profitability reflects legal and professional expenses of approximately €7 million, directly attributable to the business combination with Gulf Cement Company (UAE).
In the United States, construction investment declined, held back by weak performance in the private sector. The residential segment remained particularly fragile, still severely affected by the ongoing tight credit conditions. In contrast, public construction continued to expand, albeit at a quite moderate pace.
Looking at our sales volumes, the sharp slowdown observed in the first quarter continued into the following three months, although with a gradual sequential improvement. Even in the spring, weak demand was compounded by adverse weather conditions, especially in May, leading to a 6.0% decline in cement deliveries for the semester compared to 2024 levels. Ready-mix concrete output instead, essentially present in Texas, experienced a less pronounced drop (-3.1%). Selling prices in the cement business remained in line with winter levels, posting a mild increase compared to the same period last year. As a result, net sales totaled €787.1 million, down 5.9% from €836.5 million in 2024, while Ebitda decreased from €280.2 million to €235.1 million (-16.1%), highlighting a deterioration in Ebitda to sales margin. Unit production costs, indeed, showed a rather unfavorable trend, due to an increase in fixed items. Additionally, the depreciation of the dollar (-1.1%) had a negative impact on the translation of results into euro. At constant exchange rates, net sales would have declined by 4.9% and Ebitda would have decreased by 15.2%.
In Germany, construction activity remained weak in the first part of the year, although the most recent high-frequency indicators have shown some signs of improvement. For the first time since 2022, business confidence returned to positive territory in May and in the following month, the infrastructure segment finally moved into expansion. However, the market continues to be held back by the still challenging conditions in the residential sector.
Our cement and ready-mix concrete sales volumes resumed growth during the semester, increasing by 3.8% and 3.2% respectively, also benefiting from a favorable comparison with a particularly weak start to 2024. Average selling prices, mainly due to carry-over effects, contributed negatively to performance in the period and, as a result, sales revenue remained essentially flat year-on-year, amounting to €388.2 million (€388.0 million in 2024). Ebitda saw a sharp decline (-31.5%), dropping from €73.9 million to €50.7 million. It is worth noting, however, that last year’s result had benefited from non-recurring income of €4.9 million. Excluding this item, recurring Ebitda still fell by 26.6%, weighed down by higher unit costs for raw materials and electricity supply.
In Luxembourg and the Netherlands, during the second quarter, our cement and ready-mix concrete deliveries continued to recover from the low activity levels seen in 2024, driven by increased exports, while domestic demand remained relatively weak. Therefore, the first half of the year closed with cement sales volumes up 19.5% and ready-mix concrete volumes up 10.4%. Although cement selling prices did not change significantly during the spring, they were lower semester-on-semester. Net sales reached €99.4 million, up 11.5% from €89.1 million in 2024, despite the deconsolidation of the French ready-mix concrete operations, which were sold last year. On a like-for-like basis, turnover would have increased by 14.8%. In contrast, the reduction in consolidation scope had no significant impact on Ebitda, which rose from €4.7 million to €19.0 million, benefiting from improved operating leverage.
In Poland, construction activity saw a modest increase in winter, though with mixed signals. The market was driven by new investment projects, while renovation works contracted. In addition, sector data point to positive momentum only in civil engineering and highly specialized construction work.
In the second quarter, our cement shipments confirmed a strong recovery compared to the lackluster levels of early 2024, closing the first half of the year with a sharp increase (+43.7%). As a matter of fact, this positive trend in deliveries was driven not only by resilient domestic demand and favorable weather conditions, but also by a rebalancing of the commercial strategy, which led to a period-on-period decline of average selling prices in local currency. Ready-mix concrete volumes also posted positive growth, though at a more moderate pace (+10.6%).
As a result, net sales reached €98.4 million, up 34.7% from €73.1 million in 2024, while Ebitda rose from €12.7 million to €26.9 million. The appreciation of the zloty (+2.0%) had a limited effect on the translation of results into euro. Ebitda to sales margin recovered significantly, reaching 27.3%, supported by higher production levels and lower energy costs.
In the Czech Republic and Slovakia, construction activity regained ground, supported by solid performance in both residential and commercial building, as well as in civil engineering. Although the total value of approved projects is down, permits for non-residential buildings and transport infrastructure have increased. The housing sector, on the other hand, continues to show greater volatility.
Cement sales, consistent with the first quarter, grew moderately during the spring, bringing the first-half performance to a 2.7% increase, with local-currency selling prices slightly up year over year. Conversely, the ready-mix concrete segment performed more strongly, with volumes rising by 9.0%. Net sales totaled €100.6 million, up 4.6% compared to €96.2 million in 2024, and Ebitda increased from €28.3 million to €33.3 million (+17.6%). The Czech koruna showed no significant fluctuations during the period, while Ebitda to sales margin strengthened from 29.4% to 33.1% , thanks to lower energy prices and a reduced share of fixed production costs.
In Brazil, after a strong first quarter, cement sales slowed down in the period between April and June, partly due to a less favorable comparison with the same period of the previous year. As a result, deliveries closed the first half of the year with a modest increase (+1.8%) versus the first half of 2024, while selling prices in local currency remained largely unchanged. Despite resilient demand, net sales decreased from €186.9 million to €164.8 million (-11.8%) and Ebitda stood at €36.0 million, down from €44.5 million in 2024. This is a pro-forma comparison referring to the entire period; however, it should be noted that actual consolidation only took place starting from 3 October 2024. The translation of results into euro was significantly impacted by the -14.5% depreciation of the Brazilian real, while Ebitda to sales margin was slightly affected by higher fixed costs.
Buzzi began operations in the United Arab Emirates following the acquisition of a controlling stake in Gulf Cement Company, a publicly traded entity listed on the Abu Dhabi Stock Exchange and headquartered in the Emirate of Ras Al Khaimah. After the success of the Public Tender Offer, this firm was included in our consolidation scope starting in May and, during the half-year under review, it contributed €21.1 million to revenue and €2.9 million to the group’s Ebitda.
As regards Russia, on the other hand, in compliance with the sanctions adopted by the European institutions, as early as May 2022 Buzzi stopped all involvement in the operational activities of its local subsidiaries. Consequently, decisions relating to the investment can only be taken through the shareholders' meeting and are limited to those which, according to the Commercial Code of Russia, are the responsibility of this body, as well as decisions of an extraordinary nature as defined in the bylaws. The information available to us regarding the trend in demand and the construction market is therefore very limited. At the balance sheet date, the value of our net assets in Russia totaled €483.5 million.
In the period under review, net sales amounted to €147.6 million, improving compared to €132.5 million of the previous year (+11.4%), while Ebitda decreased from €42.8 to €38.3 million (-10.6%). The exchange rate effect (+3.2%) favorably influenced the translation of the results into euro: at constant exchange rates, net sales would have been up 7.9% and Ebitda down 13.4%.
In Mexico, cement sales volumes of our joint venture (valued by the equity method), which were already declining in the first quarter, slowed further down during the spring, also affected by unfavorable weather conditions in June, closing the first half of the year down 6.6%. The ready-mix concrete segment recorded an even more negative performance (-18.4%), while average selling prices in local currency strengthened year over year.
Net sales, referring to 100% of the joint venture, stood at €452.8 million, down 18.0% on the previous year, while Ebitda came in at €214.1 million, down compared to €254.5 million of 2024. It is worth noting that these results were impacted by the significant depreciation of the Mexican peso (-17.8%); at constant exchange rates, as a matter of fact, the decline in net sales and Ebitda would have been more moderate, at 3.4% and 0.9% respectively. The price-cost dynamic improved over the semester, allowing the Ebitda margin to reach 47.3%.
The earnings referring to Mexico, included in the line item that encompasses the investments valued by the equity method, amount to €49.2 million (€64.3 million in 2024).
OUTLOOK
In a context of significant uncertainty, the performance of the first six months of 2025 for the group as a whole benefited from resilient trends in deliveries and selling prices. However, the anticipated increase in production costs in the group’s main operating countries negatively affected recurring profitability, although the half year still confirmed sound operating results.
Looking ahead to the second half of the year, we do not expect substantial changes in the main trends that have so far characterized demand in our core markets. In Italy, as a matter of fact, excluding changes in the scope of consolidation, we believe that recent developments are fully consistent with the expected stabilization of deliveries for the current year, supported by ongoing construction projects linked to the National Recovery and Resilience Plan (PNRR). In the United States, although weather conditions have improved, we expect to recover only partially from the weak delivery trends due to the prolonged slowdown in the construction sector. Despite the ongoing challenging economic environment, the recovery in Central Europe is expected to continue in the coming quarters, albeit at a slower pace. Among the Eastern European countries, in Poland, the second half of the year faces a tougher comparison base, but demand prospects remain optimistic in both residential construction and infrastructure. In the Czech Republic as well, consumption is expected to continue expanding moderately. In Latin America, the latest projections for the year point to a slight growth of the market in Brazil, while we expect construction activity to remain relatively weak in Mexico.
In conclusion, although the latest forecasts point to slightly more optimistic prospects in Europe, the economic scenario that has emerged in the United States in recent months has inevitably called into question the resilience of domestic demand. This new environment, along with, to a greater extent, the wide fluctuations in the exchange rates of the US dollar and Brazilian real, has led us to revise our expectations for the current year. In light of the above considerations and the changes that have occurred in the scope of consolidation, we expect to achieve a recurring Ebitda for full-year 2025 in the range of €1,100–1,200 million.
SENIOR NOTES AND BONDS
In the period from 1 January to 30 June 2025 no new bonds were issued.
The Board of Directors resolved to extend until 31 December 2025 the deadline for the issuance of the non-convertible bond loan, with a maximum nominal amount of €150 million, already approved on 13 May 2025. This extension aims to take advantage of the most favorable market conditions. The bond loan will be offered exclusively to qualified investors (excluding the United States of America or any other jurisdiction where the offer of securities would be unlawful) and is intended to supplement the company’s financial resources for ordinary funding 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.
***
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.
***
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
***
Buzzi H1 2025 results will be illustrated during a conference call to be held today, Tuesday 5 August, at 04:00 pm CEST. To join the conference, please register at the following link: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=9836878&linkSecurityString=17b2b0c39a.