Cemex reports highest EBITDA margin in eight years

Cemex has reported strong 2Q24 results with a two per cent increase in EBITDA, while the EBITDA margin expanded to the highest level since 2016. The EBITDA margin was propelled by favourable price-to-cost dynamics, with prices rising mid-single digits amidst decelerating costs. Net sales were flat compared to the 2Q23, reflecting difficult weather conditions in key markets offset by pricing momentum, says Cemex.

“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 Urbanisation Solutions business, continued to support EBITDA growth,” said Fernando A González, CEO of Cemex.

“On Climate Action, we continue to make steady progress in decarbonisation with a three per cent 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.”

Net sales were flat at US$4494m, while EBITDA increased two per cent to US$965m and EBITDA margin increased 0.3 percentage points to 21.5 per cent. Free cash flow after maintenance capital expenditures was US$252m. Growth investments accounted for 10 per cent of total EBITDA. The Urbanization Solutions business EBITDA increased 10 per cent during the period. Controlling interest net income was US$230m.

Regional results

Net sales in Mexico increased six per cent, to US$1381m, while EBITDA grew 14 per cent to US$454m, a record level. EBITDA margin expanded 2.1 percentage points to 32.9 per cent. Meanwhile, net sales in the USA declined two per cent to US$1392m. EBITDA decreased two per cent to US$297m and the EBITDA margin reached a peak level of 21.4 per cent, a 0.1 percentage point expansion.

In the Europe, Middle East, and Africa region, net sales were down seven per cent, to US$1190m. EBITDA was US$175m, 12 per cent lower, while EBITDA margin decreased 0.9 percentage points to 14.7 per cent.

Cemex’s operations in South, Central America and the Caribbean region reported net sales of US$457m, an increase of three per cent, while EBITDA declined two per cent to US$110m. EBITDA margin decreased one percentage point, to 24.2 per cent.