Cemex reports EBITDA growth and highest EBITDA margin in eight years

Cemex reports EBITDA growth and highest EBITDA margin in eight years

July 25, 2024
Monterrey, Mexico. July 25, 2024 – Cemex reported strong second quarter results today, with a 2% increase in EBITDA, while EBTIDA margin expanded to the highest level since 2016. EBITDA margin was propelled by favorable price-to-cost dynamics, with prices rising mid-single digits amidst decelerating costs. Net Sales were flat compared to the second quarter of 2023, reflecting difficult weather conditions in key markets offset by pricing momentum.

“Our strong second quarter results demonstrate the efficacy of our commercial approach and growth strategy. Pricing contribution of our products continues to exceed decelerating input cost inflation, while our bolt-on investments, mainly in the US, and our Urbanization Solutions business, continued to support EBITDA growth,” said Fernando A. González, CEO of Cemex. “On Climate Action, we continue to make steady progress in decarbonization with a 3% decline in Scope 1 emissions year to-date. European operations are leading the way, with emissions today already at European industry 2030 targets and within reach of Cemex’s consolidated 2030 targets, almost six years ahead of time.”

During the quarter, Cemex achieved another important milestone with its second Investment Grade rating from Fitch Ratings. Cemex was also recognized as the top-scoring company in the World Benchmarking Alliance’s 2024 Climate and Energy Benchmark, among 91 of the world’s most influential aluminum, cement, and steel companies, evidence that Cemex’s leadership in sustainability holds up well even beyond the cement industry.

 

Cemex’s Consolidated 2024 Second Quarter Financial and Operational Highlights

• Net Sales were flat at US$4,494 million.
• EBITDA increased 2% to US$965 million.
• EBITDA margin increased 0.3pp to 21.5%.
• Free Cash Flow after Maintenance Capital Expenditures was US$252 million.
• Growth investments account for 10% of total EBITDA.
• Urbanization Solutions business EBITDA increased 10%.
• European operations have nearly reached Cemex consolidated 2030 CO2 reduction target, ~6 years in advance.
• Controlling interest Net Income was US$230 million.

 

Geographical Markets 2024 Second Quarter Highlights
• Net Sales in Mexico increased 6%, to US$1,381 million, while EBITDA grew 14% to US$454 million, a record level. EBITDA Margin expanded 2.1pp to 32.9%.
•Net Sales in the United States declined 2% to US$1,392 million. EBITDA decreased 2% to US$297 million, and EBITDA Margin reached a peak level of 21.4%, a 0.1pp expansion.
• In the Europe, Middle East, and Africa region, Net Sales were down 7%, to US$1,190 million. EBITDA was US$175 million, 12% lower, while EBITDA Margin decreased 0.9pp to 14.7%.
• Cemex’s operations in South, Central America, and the Caribbean region reported Net Sales of US$457 million, an increase of 3%, while EBITDA declined 2% to US$110 million. EBITDA Margin decreased 1pp, to 24.2%.

Note: All percentage variations related to Net Sales and EBITDA are for our continued operations and compared to the same period of last year. All references to EBITDA mean Operating EBITDA.