Cementos Argos (CEMARGOS) Q1 2026 earnings summary

Executive summary

• Announced a structural transformation to separate into two focused operating companies: Argos Materials (U.S.) and Argos LATAM (Colombia, Central America, Caribbean, and trading), each with strategic and financial autonomy to maximize shareholder value and accelerate growth.

• SPRINT 4.0 program continues to drive value creation, with a cumulative total shareholder return of 693% in dollars since February 2023 and a 16% TSR by April 2026.

• U.S. growth strategy advancing, including a second test shipment to Houston and capitalization of Argos North America Investments LLC with $400 million to serve as the holding structure for U.S. operations.

• Delivered solid operating results in a mixed market environment, with Colombia and Central America showing strong performance and margin expansion.

Financial highlights

• Consolidated revenues for 1Q26 were COP 1.22 trillion, nearly flat year-over-year (-0.8%), with volume growth in Colombia and Central America offset by operational disruptions in the Dominican Republic.

• Adjusted EBITDA reached COP 271 billion, up 4.7% year-over-year, with a margin of 22.2%, expanding 116 basis points versus Q1 2025.

• Adjusted net income was COP 120 billion, down from the prior year mainly due to FX losses; net margin at 9.8%.

• Cement volumes were 2.08 million tons (-0.8% YoY); ready-mix concrete volumes grew 9.1% to 570k m3.

• Free cash flow conversion reached 73% of EBITDA this quarter.

Outlook and guidance

• Full-year EBITDA margin guidance reaffirmed at 24%-26%, with management confident in achieving this target as maintenance impacts are front-loaded in Q1 and volumes typically improve in the second half.

• 2026 guidance reaffirmed, supported by positive market dynamics, efficiency initiatives, and U.S. growth strategy.

• CAPEX guidance for 2026: USD 80-100 million for both Latam and U.S. operations.

• U.S. team expected to be fully in place by mid-to-late 2026 to support Dominican Republic operations and M&A activity.