Cementos Argos (CEMARGOS) Q2 2026 earnings summary

Executive summary

• Achieved strong second quarter performance, driven by robust demand in Colombia and Central America, despite lower cement volumes and maintenance-heavy operations.

• Advanced transformation into two focused platforms: Argos Materials (U.S. and Dominican Republic) and Argos Latam (Latin America and Caribbean), with leadership teams established.

• SPRINT program continues to drive shareholder value, with total shareholder return up 750% in USD since launch and 25% year-to-date.

• Reaffirmed full-year 2026 guidance, supported by solid Latam performance and advancing U.S. growth strategy.

Financial highlights

• Consolidated revenues for 2Q26 reached COP 1.315 trillion, up 2.4% year-over-year; adjusted EBITDA was COP 279 billion, down 5.3% year-over-year, with a margin of 21.2%.

• Adjusted net income was COP 154 billion, impacted by lower net interest income, a lower cash balance, and a one-off COP 64 billion provision related to the Argos USA settlement.

• Cement volumes declined 7.4% year-over-year; ready-mix/concrete volumes grew 15%–15.5%, led by Colombia.

• Positive FX impact: COP 25–35 billion gain from peso appreciation.

• Provision of COP 64 billion for Summit transaction adjustment excluded from adjusted net income.

Outlook and guidance

• Full-year adjusted EBITDA margin guidance reaffirmed at 24%–26%, with 1H26 margin at 21.7%.

• Return on capital employed at 16.5% (last twelve months), above the >16% target.

• Expect margin rebound in the second half from normalization in Colombia and Central America.

• CAPEX guidance for 2026 set at USD 80–100 million.

• Growth in Venezuela and Guatemala expected, with phased approach and volume targets of 5,000 tons/month for Venezuela and 20,000–35,000 tons/month for Guatemala.