Cementos Argos (CEMARGOS) Q2 2026 earnings summary

Executive summary

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

• Advanced transformation into two independent 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 25% year-to-date and cumulative 750% since launch; market capitalization increased 333%.

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

Financial highlights

• Consolidated revenues grew 2.4% year-over-year to COP 1.3 trillion in 2Q26; 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, higher maintenance, and a COP 64 billion provision for the Summit/Argos USA settlement, excluded from adjusted net income.

• Cement volumes declined 7.4% year-over-year, mainly due to lower exports and trading; ready-mix volumes rose 15.5%, led by Colombia.

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

• Caribbean and Central America revenues grew 15% year-over-year in USD, with Guatemala volumes tripling and Panama showing high single-digit industry growth.

Outlook and guidance

• Full-year adjusted EBITDA margin guidance reaffirmed at 24–26%, with 1H26 margin at 21.7% and expected margin rebound in the second half from normalization in Colombia and Central America.

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

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

• Continued focus on operational efficiency, cost control, and value creation across both platforms.

• Expect improvement in Colombian margins in the second half as maintenance is completed.