CEMEX (CEMEXCPO) Q1 2026 earnings summary

Executive summary

• Record first quarter EBITDA of $794 million, up 34% year-over-year, with margin expanding 3.3pp to 19.8%, driven by Project Cutting Edge, structural cost improvements, and strong performance in Mexico, EMEA, and South Central America and the Caribbean.

• Net sales rose 11% year-over-year to $4.0 billion, with like-to-like growth of 3%, supported by higher consolidated prices and cement volume recovery in Mexico.

• Portfolio rebalancing continued with the announced divestment of Colombian assets and the acquisition of Omega in the U.S., supporting improved margins and free cash flow conversion.

• Shareholder returns enhanced through a $100 million share buyback, a nearly 40% dividend increase, and a share buyback program of up to $500 million over three years.

• Cemex achieved AAA MSCI ESG rating, reflecting sustainability and decarbonization progress.

Financial highlights

• EBITDA margin reached 19.8%, up from 16.5% in 1Q25, with like-for-like EBITDA up 23% and EBIT up 56% to $453 million.

• Free cash flow from operations increased by nearly $300 million year-over-year, reaching $29 million, with a trailing 12-month conversion rate of 51%.

• Adjusted net income nearly doubled year-over-year, excluding one-off gains from prior divestitures; controlling interest net income was $228 million.

• Cost of sales and operating expenses as a percentage of sales improved significantly, with cost of goods sold down 175 bps and operating expenses down 148 bps year-over-year.

• Net debt plus subordinated notes increased sequentially due to acquisitions and shareholder returns, but leverage ratio improved to 2.30x from 2.57x a year ago.

Outlook and guidance

• Full-year consolidated volume guidance of low double-digit growth across core products remains unchanged, with slight regional adjustments; 2026 EBITDA expected to increase high-single digits.

• Energy cost per ton of cement is now expected to rise mid- to high-single digits for the year.

• Maintenance CapEx guided at ~$900 million, growth investments at ~$300 million, and working capital investment $50–100 million.

• Management remains confident in delivering full-year EBITDA guidance despite ongoing volatility and energy inflation.

• Additional Project Cutting Edge savings of $105 million expected in 2026, with potential upsizing of the $400 million cost savings target.