Buzzi cement volumes rise on Brazil strength despite weaker Europe

Italy-based cement producer Buzzi SpA reported a 5.4% increase in volumes during the first half of 2026 compared with a year earlier, amid the expansion of its UAE operations, even as ready-mix concrete demand weakened across key European markets.

Brazil delivered "particularly strong performance in profitability and operating margin expansion," as Buzzi's South American operations benefited from robust construction activity supported by federal housing programs and infrastructure investment, the company said.

Ready-mix concrete sales fell 4.2% in H1 2026, reflecting divergent regional dynamics as the company navigated geopolitical tensions in the Middle East and cost pressures in its core US and European markets, Buzzi said in a statement Aug. 4.

Regional performance

In the UAE, where Buzzi acquired a controlling stake in Gulf Cement Company in May 2025, cement shipments declined 15.7% on a pro-forma basis in H1 2026 as the company pivoted away from low-margin clinker exports toward higher-value domestic sales, according to the statement.

The strategic shift, combined with pricing improvements, helped revenues reach €75.8 million, Buzzi said.

"Despite lower volumes as a result of the conflict in the area, a solid price and product mix strategy allowed the group to close the first half with revenues of €75.8 million," the company said.

In the US, Buzzi's largest market by revenue, cement deliveries rose 1.6% in H1 2026 as strong early-year demand offset a spring slowdown caused by heavy rainfall in Texas, according to the statement.

However, competitive pressures in the Texas market, combined with elevated fuel costs and a 6.8% depreciation of the dollar against the euro, weighed on profitability, Buzzi said. US net sales fell 6.9% to €733.0 million in H1 2026.

European markets struggled with weather-related disruptions and weaker residential construction, according to the company. In Germany, H1 2026 cement volumes declined 3.5%, while ready-mix concrete deliveries fell 6.9%, Buzzi said.

Italy's cement sales dropped 6.2% during the period as infrastructure projects tied to the National Recovery and Resilience Plan wound down, though pricing improvements helped limit revenue declines, the company said.

The Czech Republic and Slovakia bucked the European trend, with H1 2026 cement volumes rising 5.5% and ready-mix concrete increasing 10.9%, driven by robust construction activity in Prague, Buzzi said. Net sales in the region increased 15.7% to €116.3 million in H1 2026.

Poland saw volumes decline 10.6% in H1 2026 following severe weather in the first quarter, though pricing improvements helped cushion the impact on profitability, Buzzi said, adding that cement prices in local currency reached "slightly higher levels" than the prior year.

In Brazil, H1 2026 cement shipments advanced 3.2%, while average selling prices strengthened significantly in local currency terms, according to the company. The combination drove net sales up 23.8% to €204.0 million in H1 2026.

The company said its Mexican joint venture, in which Buzzi holds a 50% stake, delivered strong operating profitability, with cement volumes up 12.7% in H1 2026.

Outlook

Buzzi reaffirmed its full-year guidance, expecting recurring EBITDA between €1.1 billion and €1.2 billion despite macroeconomic uncertainty and geopolitical tensions, according to the statement. The company said it does not anticipate "any significant changes" in market conditions during the second half of the year compared with the first six months.

In Brazil, "the high utilization of production capacity, together with the significant price recovery recorded in recent quarters and the growth in sales volumes, supports favorable expectations for the second half of the year," the company said.

In the US, Buzzi said it expects full-year volumes to match 2025 levels but cautioned that "pricing conditions are under pressure" in Texas, making it difficult to offset rising operating costs.

The UAE remains "the market most exposed to the effects of ongoing geopolitical tensions," Buzzi said.