Buzzi Bets on Data Center Demand to Anchor Its Texas Expansion
H1 2026 shows a resilient but bifurcated portfolio: Latin America and UAE shine, while U.S. and Russia weigh on EBITDA; data centers become a key growth vector.
BZU.MI · Earnings Call · 2026-08-04
Sound but Not Outstanding
CEO Pietro Buzzi opened the H1 2026 call with a measured tone: “The results that we released this early afternoon are, I would say, not as good as the previous 2 years, but still pretty sound, at least in our opinion.” — Pietro Buzzi, CEO · 2026-08-04 Cement volumes rose 5.4% on a reported basis, helped by scope changes, but ready-mix volumes fell ~4%, hit by demand softness in Italy, Germany, and Central Europe. Group EBITDA dropped 8% to €483 million, dragged down by the U.S. and Russia, while Brazil, UAE, and Mexico provided positive offsets. Cash flow was impacted by working capital swings, but net cash remained strong at €896 million.Data Centers: The New Growth Engine in Texas
The most striking theme of the call was the prominence of data centers as a demand driver. In the U.S., nearly 10% of Buzzi's volumes in the first half went into data center projects, despite the overall market being flattish. The American Cement Association revised its summer forecast upward, "driven to a large extent by this kind of hubs." Texas, a major hub, is also where Buzzi is concentrating its ready mix business and next phase of expansion. The company is progressing with its CapEx plan: a new finish mill, railway terminal, and import terminal in Beaumont, with a decision on a new kiln line expected in about two years. Pricing, however, remains a challenge. “by year-end, probably if we look at the average price for the U.S., we can move from a slightly negative sign to slightly positive.” — Pietro Buzzi, CEO · 2026-08-04 This is regionally differentiated – the Midwest is seeing increases, while South Texas struggles with imports and new competition, including GCC's new plant and QUIKRETE's self-supply ambitions.Capital Discipline and a Cautious M&A Stance
Buzzi also announced the cancellation of its treasury shares, a move the CEO framed as pragmatic: “we decided to cancel because we did not see ... a clear use of the shares. However, doesn't mean that we are not open ... to a transaction.” — Pietro Buzzi, CEO · 2026-08-04 Buyback activity was heavy in H1, totaling €180 million, and net cash remains substantial. On M&A, Buzzi is rational: multiples in the U.S. are "very, very high," so the focus is on reinforcing existing footprints. Brazil, where CSN is selling its cement business, is one area of interest. “yes, we are interested in following this kind of development. And yes, to find possibility to grow our footprint there.” — Pietro Buzzi, CEO · 2026-08-04Contrast with Prior Calls: The World Has Shifted
The March 2026 call focused on energy costs and price hikes to offset inflation. There, the CEO spoke of hedging and the EU ETS, but data centers were not a headline. The August 2025 call was dominated by cost-cutting and U.S. volume concerns. “we are now assuming a volume trend, which is not minus 5.” — Pietro Buzzi, Chief Executive Officer (CEO) · 2025-08-12 Today, the conversation has evolved: the demand story is increasingly about infra for tech, and the risk is more about competition and tariffs than about underlying volumes.The energy release program in Italy and the potential for German equivalents also remain supportive, but the big swing factor is now the pace of data center capex and the ability of the U.S. to hold pricing against imports.If we ended up, let's say, at the upper level of the range, it will be, yes, a decline versus last year. But in my opinion, not so significant or not so negative considering the overall situation that we have been facing and we are facing in the – during 2026.