CEMEX (CEMEXCPO) Q4 2024 earnings summary

Executive summary

• Achieved investment-grade rating and leverage ratio of 1.81x, the lowest since 2007, with $2.2 billion in divestitures and $344 million EBITDA from growth investments, rebalancing the portfolio toward developed markets.

• Net income reached $939 million, a 415% year-over-year increase, driven by lower tax rates and asset divestment gains; consolidated EBITDA was $3.08 billion, stable year-over-year with a 19% margin.

• Launched a progressive dividend program and a $500 million share buyback plan; received major EU and U.S. grants for carbon capture projects.

• Significant decarbonization progress with 15% and 17% reductions in Scope 1 and 2 CO2 emissions since 2020.

• Project Cutting Edge, a $350 million cost program, targets $150 million EBITDA savings in 2025 and $350 million annually by 2027.

Financial highlights

• Net sales for 2024 were $16.2 billion, down 2% year-over-year; net income surged 415% to $939 million, and EBITDA margin held steady at 19%.

• Free cash flow after maintenance CapEx reached $1.21 billion, the highest since 2017 after adjusting for a Spanish tax fine; $215 million benefit from working capital management.

• Total debt reduced 10% to $6.7 billion; net debt down 15% to $5.8 billion; leverage ratio improved to 1.81x.

• Fuel costs per ton of cement declined 23% due to lower prices and increased use of alternative fuels.

• Growth investments delivered $344 million in EBITDA in 2024, with average IRRs of 35%.

Outlook and guidance

• 2025 guidance assumes flat EBITDA due to FX headwinds, especially in Mexico, but low single-digit EBITDA growth excluding FX impact; energy cost per ton of cement to decrease high single digits.

• Volume growth expected in all regions except Mexico; pricing to offset input cost inflation.

• Project Cutting Edge to deliver $150 million EBITDA savings in 2025 and $500 million in free cash flow savings after maintenance CapEx, a 65% increase over 2024.

• Strategic CapEx for 2025 set at $600 million, with a shift toward small-to-mid-size acquisitions in the U.S.; maintenance CapEx at $800 million.

• Maintenance CapEx, taxes, and cash interest expense expected to decline in 2025; cash taxes guided at ~$450 million.