Cementos Argos (CEMARGOS) Q1 2025 earnings summary

Executive summary

• Achieved resilient performance in 1Q25 with adjusted net income up 7.5% year-over-year, supported by efficiency programs, lower interest expenses, and strategic portfolio moves including the Grupo SURA spinoff and Summit Materials sale, resulting in a 17% dividend yield and strong shareholder returns.

• Advanced SPRINT 3.0 strategy, delivering a 380% total shareholder return in USD since inception, executing significant share buybacks, and progressing toward U.S. aggregates market re-entry.

• Diversified operations across Colombia, the Caribbean, and Central America, with a total annual cement capacity of 14.4 million tons.

Financial highlights

• Q1 2025 revenues reached COP 1.23 trillion, down 6.1% year-over-year; adjusted EBITDA was COP 258 billion with a 21% margin, and adjusted net income rose 7.5% to COP 137 billion, excluding non-recurring Summit Materials gains.

• Cement volumes declined 6.3% and concrete volumes dropped 19.4% year-over-year due to local market dynamics and adverse weather.

• IFRS net income was COP 2.14 trillion, mainly due to the Summit Materials sale.

• Net debt-to-EBITDA at -7.6x, reflecting strong cash position post-Summit sale; consolidated cost of debt at 11.51%.

Outlook and guidance

• Targeting consolidated EBITDA margin above 25% within two years and ROCE between 14% and 15% in 2025, with CAPEX planned at USD 70–90 million.

• Plans to rebuild a U.S. operation capable of generating USD 300 million in annual EBITDA within 3–5 years.

• Optimistic about Colombian market recovery in 2H25, supported by major infrastructure projects and a strong concrete backlog.