Cemex achieves investment-grade capital structure

Cemex has announced that it is executing its strategic objectives under its Operation Resilience programme faster than previously anticipated, as a result of decisive management decisions combined with solid market performance.

The company is confident that it will achieve an investment-grade capital structure of 3x leverage by the end of this month. As a result, it has established a new leverage target within its Operation Resilience goals that consists of regaining an investment-grade credit rating.

Due to the significant YoY growth over the past three quarters, coupled with a favourable medium-term outlook, Cemex is raising its 2021 EBITDA guidance to US$3.1bn, a 26 per cent increase from the prior year, and now expects double-digit EBITDA growth in 2022.

The company expects to generate approximately US$400m of annual EBITDA in 2023 from its bolt-on investments, its margin enhancement projects, as well as its 10Mta of new cement capacity. These new additions, which are expected to be completed by 2023, include 5Mta of cement capacity in Mexico, 1Mta in Europe, 2.3Mta in the South, Central America and the Caribbean region and 1.5Mta in the Philippines. These additions will be structured to take into consideration the company's climate action priority.

"I am pleased to announce that Cemex is reaching its long-standing goal of an investment-grade capital structure by the end of this month" said Fernando A Gonzalez, Cemex CEO. "We believe that we currently have the best market outlook in years, and that we are entering a period of sustainable growth. We can turn the page on what has been a lengthy chapter for Cemex and open a new book where we consolidate our recent achievements and shift our strategic balance a bit more towards growth."