Cemex reported its 4Q24 and full-year 2024 results and saw an annual EBITDA of US$3079m and a net income of US$939m. After an exceptional year in 2023, the company continues delivering strong results, reflected in the resiliency of its EBITDA margin and the highest free cash flow after maintenance capex since 2017, adjusting for the Spanish tax fine.
Net sales decreased by one per cent to US$16,200m in 2024 and remained flat at US$3811m in the 4Q24. EBITDA decreased by one per cent to US$3079m in 2024 and increased by three per cent to US$681m in the fourth quarter. EBITDA margin remained flat in 2024 at 19 per cent and increased by 0.4 percentage points to 17.9 per cent in the 4Q24. Free cash flow after maintenance capital expenditures increased to US$1253m in 2024, adjusting for the US$383m payment related to the tax fine in Spain. Net income reached US$939m, a record level in the company's recent history.
Regional results
Sales in Mexico increased by one per cent in 2024 to US$4881m and decreased by six per cent in the 4Q24 to US$1050m. EBITDA increased by three per cent in 2024 to US$1475m and decreased by four per cent in the 4Q24 to US$283m. Cemex’s operations in the USA reported Sales of US$5194m in 2024, a decrease of three per cent, and US$1233m in the 4Q24, also a three per cent decline. EBITDA decreased by one per cent in 2024 to US$1031m and remained flat at US$238m in the 4Q24.
In the Europe, Middle East and Africa region, sales decreased by two per cent in 2024 to US$4631m, and increased by eight per cent in the 4Q24 to US$1155m. EBITDA was US$637m in 2024, three per cent lower than the previous year, and US$177m for the 4Q24, a 43 per cent increase. Cemex operations in Latin America and the Caribbean region reported sales of US$1244m in 2024, remaining flat, and US$297m in the 4Q24, also remaining stable. EBITDA increased by two per cent to US$234m in 2024 and by two per cent to US$57m in the 4Q24.
"I am proud of our achievements this year, as it marks a pivotal moment in the corporate transformation we envisioned in 2020,” said Fernando A González, CEO of Cemex. “With the recovery of our investment grade ratings, improved free cash flow generation and the execution of US$2.2bn in asset divestments, we can now pursue more aggressively our capital allocation priorities of growth through small to medium-sized acquisitions, primarily in the US, additional deleveraging, and building further on our shareholder return programmes.”
Cemex also launched “Project Cutting Edge”, a three-year US$350m saving initiative to streamline operations and improve efficiency, heavily leveraging digital technology throughout the company. This programme is anticipated to deliver US$150m in incremental EBITDA in 2025 expecting to reach a run rate of US$350m by 2027. “Project Cutting Edge” also contemplates expected savings at the free cash flow level.
Environmental progress
In Climate Action, the company is advancing its Future in Action roadmap, making significant progress in profitable decarbonisation by reducing Scope 1 and Scope 2 CO2 emissions by 15 per cent and about 17 per cent, respectively, compared to 2020, a reduction that historically would have taken Cemex 16 years to achieve. Based on current emissions levels, Cemex is well on its way to reach its 2025 and 2030 CO2 emissions targets. Net leverage stood at 1.81 times, its lowest level since the outbreak of the 2007 global financial crisis. Growth investments contributed US$344m to consolidated EBITDA in 2024. EBITDA from Cemex’s Urbanisation Solutions business increased by four per cent, with margin expanding by 1.1 percentage points in 2024.
