GCC S A B de C V (GCC) Q2 2025 earnings summary

Executive summary

• Consolidated net sales rose 1% year-over-year to $363.9M, with U.S. sales up 7.7% and strong volume growth, offset by declines in Mexico and margin contraction from one-off items and currency effects.

• Operational agility and cost optimization programs yielded $5M in realized savings, with $7M more targeted for the second half.

• EBITDA fell 11.6% to $118.4M, with margin down to 32.5%; net income dropped 18% to $73.5M.

• Safety performance improved, with a 37% reduction in recordable incidents, and the company was recognized as a top workplace in Mexico.

• Sustainability initiatives advanced, including increased clean and alternative fuel usage, and a 3.7% reduction in Scope 1 CO₂ emissions.

Financial highlights

• Q2 2025 net sales: $363.9M (+1% YoY); U.S. revenues up 7.7% to $272.3M, with cement volumes up 4.2% and concrete volumes up 20.7%.

• Mexico revenues declined 14.8% to $91.7M, with cement and concrete volumes down 6.2% and 13.1%, respectively, and prices up mid-single digits.

• Q2 2025 EBITDA: $118.4M (32.5% margin); net income: $73.5M; EPS: $0.2242; free cash flow: $48.6M (+67.7% YoY).

• SG&A expenses improved to 8.3% of revenues, down 50 bps year-over-year.

• Net leverage ratio improved to -0.81x; cash and equivalents at $826.9M.

Outlook and guidance

• U.S. cement volumes expected flat; concrete volumes to rise mid-teens; prices flat to mid-single digit increase.

• Mexico cement and concrete volumes expected to decline mid-single digits; prices to rise mid-single digits.

• Consolidated EBITDA expected to decrease mid-single digits; FCF conversion rate above 60%.

• Total CapEx for 2025 set at $400M ($330M growth, $70M maintenance), with some projects deferred to 2026.

• Net debt/EBITDA expected to remain negative at year-end.