CEMEX (CEMEXCPO) Q4 2025 earnings summary

Executive summary

• 2025 featured a strong second half recovery, with significant operational improvements and cost efficiencies, robust free cash flow, and improved shareholder returns, despite a challenging first half and headwinds in Mexico and the U.S.

• Project Cutting Edge delivered approximately $200 million in recurring EBITDA savings, supporting margin expansion and operational improvements across all markets.

• Net sales grew 0.4% year-over-year to $16.13 billion, with EBITDA up 1% to $3.08 billion and EBITDA margin rising to 19.1%.

• Portfolio rebalancing included divestments in Panama and the Dominican Republic, with proceeds reinvested in U.S. aggregates, notably the consolidation of Couch Aggregates, strengthening the Southeast position.

• Decarbonization efforts led to a 2% reduction in consolidated gross CO2 emissions, with Europe surpassing 2030 targets five years early and blended cement at 84.5% of total production.

Financial highlights

• Free cash flow from operations reached $1.22 billion in 2025, with a 46% conversion rate, up 15 percentage points from 2024.

• Adjusted net income would have increased by 41% to $1.5 billion, excluding a $538 million goodwill impairment; full-year controlling interest net income grew 2%.

• Consolidated cement and aggregates volumes grew 1% and 2% in Q4, with EMEA offsetting U.S. and Mexico declines.

• Q4 2025 gross profit rose 12% year-over-year to $1.36 billion, with gross margin up 0.4pp to 32.6%.

• Energy costs per ton of cement declined 12% for the year, driven by lower fuel and power prices.

Outlook and guidance

• 2026 guidance anticipates high single-digit EBITDA growth, supported by $165 million in incremental Project Cutting Edge savings and $80 million in incremental EBITDA from completed growth projects.

• Maintenance CapEx for 2026 expected at ~$900 million, with growth investments contributing $195 million in positive free cash flow.

• Volume guidance for 2026: low single digit increases in cement, ready-mix, and aggregates globally; mid-single digit growth in U.S. aggregates.

• Volume recovery, pricing, and cost savings are expected to drive further margin expansion, with announced price increases in key markets.

• Guidance is subject to FX fluctuations, particularly due to Mexican peso exposure.