Buzzi Unicem S.p.A. (BZU.MI) | Investment Case

1. Company Snapshot

1.a. Company Description

Buzzi Unicem S.p.A., together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates.It also offers special binders, safety sheets, and clinkers, as well as construction hydraulic binders for making plasters and masonry works on site.The company has operations in Italy, the United States, Germany, Luxembourg, the Netherlands, Poland, the Czech Republic, Slovakia, Ukraine, Russia, Mexico, and Brazil.

Buzzi Unicem S.p.A. was founded in 1872 and is headquartered in Casale Monferrato, Italy.

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1.b. Last Insights on BZU

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1.c. Company Highlights

Last Price	51.2
Change Percentage	0.69%
Open	51.05
Previous Close	50.85
Market Cap ( Millions)	9268
Volume	542068
Year High	54.45
Year Low	35.34
M A 50	50.1
M A 200	47.27

FCF Yield	5.75%
Dividend Yield	1.37%
ROE	13.78%
Debt / Equity	9.17%
Net Debt / EBIDTA	-46.12%
Price To Book	1.41
Price Earnings Ratio	10.22
Price To FCF	17.38
Price To sales	2.08
EV / EBITDA	5.9

2. Buzzi SpA: Navigating a Challenging Environment

Buzzi SpA reported a mixed bag in its first-half 2025 earnings. While revenue increased by 6% year-over-year, adjusted for scope changes and foreign exchange, the growth was a modest 1%. EBITDA declined by 4% overall, with a sharper 8.5% drop on a like-for-like basis. This was primarily driven by lower volumes in key markets like the U.S., Germany, and Italy, partially offset by growth in Central Europe and Eastern Europe.

Publication Date: Aug -12

                                    📋 Highlights
                                    Weaker Revenue Growth::
                                                Revenue rose 6% YoY, but adjusted growth was only 1% due to foreign exchange and scope changes.
EBITDA Decline::
                                                EBITDA fell 4% overall and 8.5% on a like-for-like basis, driven by lower volumes in the U.S., Germany, and Italy.
Regional Divergence::
                                                Brazil and UAE added EUR 165M and EUR 21M in revenue, while the U.S. saw a 6% volume drop from demand and weather issues.
Capital Expenditure Plans::
                                                2025 CapEx set at EUR 600M, with EUR 100M–150M extra for decarbonization and U.S. expansion over the next few years.
Full-Year EBITDA Outlook::
                                                Revised downward to EUR 1.1B–1.2B in 2025, below EUR 1.28B in 2024, due to cost pressures and currency risks.

                                

U.S. Market Slowdown

The U.S. market, a significant contributor to Buzzi's revenues, experienced a 6% volume decline due to softer demand and weather disruptions. Despite the volume dip, pricing remained stable.

EBITDA Pressures in Europe

Italy saw a 2.7% like-for-like volume increase, but EBITDA was impacted by the disposal of the Fanna plant and one-off costs related to acquiring a 25% stake in Alpacem, Austria. Central Europe showed volume growth, but profitability was dragged down by Germany's performance.

Eastern Europe as a Bright Spot

Eastern Europe, particularly Poland and Czechia, stood out as a bright spot, performing well in both volume and pricing.

New Acquisitions Contribute to Revenue

The newly consolidated Brazilian and UAE plants contributed EUR 165 million and EUR 21 million in revenue, respectively, for the full semester.

Positive Cash Flow Despite EBITDA Pressures

Despite the EBITDA decline, cash flow from operations remained positive, driven by working capital improvements. Capital expenditures remained in line with the previous year, but equity investments surged due to the acquisitions of the UAE plant and the stake in Alpacem.

Outlook: Cautious Optimism for the Second Half

"We expect a positive second half, with potential for a rebound in the U.S. and Italy," stated the company in the earnings call transcript.

Valuation Metrics

Buzzi SpA currently trades at a P/E ratio of 8.37, a P/B ratio of 1.19, and a dividend yield of 1.62%.

3. NewsRoom

North America Building Material Market Report 2025-2033 CEMEX, Boral, Lafarge Holcim, Dyckerhoff, Buzzi Unicem, CSR, CRH, Aditya Birla, Ambuja Cements, USG

Nov -28

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What Does Buzzi’s Recent 36.6% Rally Mean for Investors in 2025?

Sep -20

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Societe Generale: shares & voting rights as of 31 August 2025

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Concrete

Expected Growth: 1.2%

Buzzi Unicem's concrete segment growth of 1.2% is driven by increasing infrastructure development, rising demand for sustainable building materials, and strategic expansion into emerging markets. Additionally, the company's focus on innovative products and cost-saving initiatives contributes to its growth momentum.

Concrete and Aggregates

Expected Growth: 0.8%

Buzzi Unicem's Concrete and Aggregates segment growth of 0.8% is driven by increasing infrastructure development, rising demand for sustainable construction materials, and strategic expansion into emerging markets. Additionally, the company's focus on operational efficiency and cost reduction initiatives contribute to its growth.

7. Detailed Products

Cement

Buzzi Unicem's cement is a hydraulic binder used in construction, civil engineering, and building materials.

Ready-Mix Concrete

A pre-mixed blend of cement, aggregates, and water, ready for use in construction projects.

Aggregates

Crushed stone, sand, and gravel used as a base material in construction and infrastructure projects.

Asphalt

A mixture of aggregates, asphalt cement, and additives used for road construction and maintenance.

Concrete Blocks

Precast concrete blocks used for building walls, foundations, and structural elements.

Precast Concrete

Pre-fabricated concrete elements used in building construction, infrastructure, and civil engineering projects.

8. Buzzi Unicem S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Buzzi Unicem S.p.A. is medium due to the presence of alternative building materials and the increasing demand for sustainable construction materials.

Bargaining Power Of Customers

The bargaining power of customers for Buzzi Unicem S.p.A. is low due to the company's strong brand reputation and the lack of switching costs for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Buzzi Unicem S.p.A. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Buzzi Unicem S.p.A. is low due to the high barriers to entry in the cement industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Buzzi Unicem S.p.A. is high due to the presence of several competitors in the cement industry and the company's need to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.98%
Debt Cost	3.95%
Equity Weight	90.02%
Equity Cost	9.12%
WACC	8.60%
Leverage	11.08%

11. Quality Control: Buzzi Unicem S.p.A. passed 9 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vicat

A-Score: 7.1/10

Value: 7.9

Growth: 6.1

Quality: 4.8

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

Titan Cement

A-Score: 7.0/10

Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

Grupa Kety

A-Score: 6.5/10

Value: 4.1

Growth: 6.0

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 7.0

1-Year Total Return ->

Buzzi Unicem

A-Score: 6.1/10

Value: 6.1

Growth: 7.3

Quality: 7.2

Yield: 3.8

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

Imerys

A-Score: 4.4/10

Value: 7.7

Growth: 1.3

Quality: 2.8

Yield: 8.8

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.76%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.60%

Buzzi Unicem S.p.A. - IT0001347308

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BZU

Have nothing to say about that one ...

1.c. Company Highlights

Better Quality

Strong Momentum

Higher Growth

Revenues Beats

Fairly Valued

Medium Volatility

Less Volatile

Revenues Miss

Stable Momentum

2. Buzzi SpA: Navigating a Challenging Environment

U.S. Market Slowdown

EBITDA Pressures in Europe

Eastern Europe as a Bright Spot

New Acquisitions Contribute to Revenue

Positive Cash Flow Despite EBITDA Pressures

Outlook: Cautious Optimism for the Second Half

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Concrete

Expected Growth: 1.2%

Concrete and Aggregates

Expected Growth: 0.8%

7. Detailed Products

Cement

Ready-Mix Concrete

Aggregates

Asphalt

Concrete Blocks

Precast Concrete

8. Buzzi Unicem S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Buzzi Unicem S.p.A. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

51.2$

Current Price

51.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA