CEMEX (CEMEXCPO) investor relations material

Strategic transformation and operational excellence

• Launched a transformation plan focused on operational excellence, cost containment, and putting investors at the center of decision-making, with new metrics emphasizing EBIT, free cash flow conversion, and ROIC over WACC.

• Shifted from five-year business plans to three-year “Formula 1 sprints” for agility and accountability, targeting best-in-class shareholder returns.

• Project Cutting Edge increased recurring savings target from $350M to $400M by 2027, with 50% of savings already secured through a 23% reduction in global overhead.

• Business performance reviews now occur twice a year per region, using granular asset-level data to identify underperforming assets and drive targeted improvement or divestment.

• Over 55% of targeted EBITDA growth through 2027 is expected from self-help measures, with further upside from ongoing transformation initiatives.

Capital allocation and financial discipline

• New capital allocation framework prioritizes investment-grade credit rating and requires all cash uses to compete for risk-adjusted shareholder returns.

• By 2030, aims to return 40%-50% of free cash flow to shareholders via progressive dividends and share buybacks; already announced a 40% dividend increase and initiated a $500M buyback program.

• Strategic CapEx will be materially reduced, focused only on margin expansion and profitable decarbonization, especially in Europe and California.

• At least $1B in divestitures planned in the current sprint, with proceeds recycled into U.S. bolt-on acquisitions, primarily in Aggregates and adjacent businesses.

• Targeting leverage of 1.5x–2x, with further interest expense reductions and a transition to SEC-registered debt issuance for broader access and improved cost of capital.

Growth strategy and business development

• Growth strategy pivots from CapEx to bolt-on M&A, especially in U.S. Aggregates and synergistic businesses like mortars, construction chemicals, and concrete products.

• Recent acquisitions include Omega (leading stucco producer in the Western U.S.) and Couch Aggregates, with a flexible approach to partnering and eventual control.

• U.S. Aggregates business is now the sixth-largest in the country, with a focus on operational excellence, technology adoption, and expanding reserves through land acquisition, projects, and M&A.

• Europe remains a priority for future expansion, with a micro-market consolidation approach, but current focus is on U.S. growth to rebalance the portfolio.

• Urbanization solutions (e.g., mortars, admixtures) targeted for $100M EBITDA platform in the U.S., with high free cash flow conversion rates.