Cementos Argos (CEMARGOS) Q3 2025 earnings summary

Executive summary

• Achieved strong operating results with 7.5% YoY cement volume growth, 18% YoY consolidated EBITDA growth, and margin expansion to 27.4% for the quarter, driven by disciplined pricing, efficiency programs, and improved demand in Colombia.

• Advanced U.S. market re-entry with operational readiness for aggregate shipments, secured two additional port positions, and launched Argos Materials, targeting $200 million incremental EBITDA by 2030.

• Completed a $230 million share buyback at COP 13,659/share, funded by Summit Materials divestment, representing 5% of shares outstanding and less than 10% of cash reserves.

• Total shareholder return since SPRINT launch reached 554% in USD, with a 25% total return delivered in 2025 through dividends, Grupo Sura spin-off, and buybacks.

• Inclusion in MSCI and FTSE indices anticipated, with trading volume up 10x in 2 years, supporting increased liquidity and market visibility.

Financial highlights

• Q3 revenues reached COP 1.37 trillion (+2.3% YoY), EBITDA COP 374 billion (+18.2% YoY), with a 27.4% margin (+368 bps YoY); net profit for the quarter was COP 278 billion (20% margin), and year-to-date net profit COP 659 billion (17% margin).

• Year-to-date revenues totaled COP 3.9 trillion and EBITDA COP 928 billion (24% margin), nearing the 25% margin target ahead of schedule.

• Cement volumes rose 7.5% YoY to 2.47 million MT; ready-mix volumes declined 7.9% YoY.

• Gross margin improved to 27.5% YTD (from 25.6%); operating margin at 14.9% YTD (up from 12.6%).

• Net debt/EBITDA at -6.7x, reflecting strong cash from Summit Materials sale; total debt at $819 million.

Outlook and guidance

• On track to achieve or exceed 25% EBITDA margin guidance one year early, with sustainable margins expected between 25%-30% going forward.

• U.S. aggregates platform aims for $200 million EBITDA in 5 years, with phase I organic and future bolt-on acquisitions to reach $300 million in 7 years.

• Mid-term CAPEX guidance of $70–90 million; YTD CAPEX at $49.3 million.

• Optimistic about continued market recovery in Colombia and constructive demand outlook into 2026 and beyond.

• Targeting USD 200 million incremental EBITDA by 2030 through organic growth, with CapEx under USD 500 million.