GCC S A B de C V (GCC) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue and EBITDA in 2024, with EBITDA margin reaching 36.6% and surpassing the 2025 target, despite challenging markets and economic uncertainties.

• Demonstrated operational agility, focusing on excellence, safety, talent development, and sustainability, including a 33% reduction in safety incidents and initiatives in alternative fuels, solar, and carbon capture.

• Expanded U.S. footprint with the acquisition of three aggregate businesses in Texas for over $100 million, adding 4 million tons of annual capacity and over 50 years of reserves.

• Free cash flow for the year totaled $321.8 million, up 37.7%, and cash and equivalents at year-end were $830.6 million.

• Fitch Ratings upgraded credit rating to 'BBB' with a stable outlook, reflecting strong performance and disciplined financial management.

Financial highlights

• Full-year net sales reached $1.37 billion, up 0.2% year-over-year; U.S. sales up 3.9%, Mexico sales down 7.9%.

• Full-year EBITDA rose 6.2% to $500.6 million (margin 36.6%); net income up 9.6% to $323.9 million.

• Q4 consolidated net sales decreased 1.3% year-over-year to $335.3 million; Q4 EBITDA up 3.7% to $121.6 million (margin 36.3%).

• Free cash flow conversion rate for 2024 was 64.3%.

• Dividend per share increased 15% year-over-year, with $30 million paid in dividends.

Outlook and guidance

• 2025 outlook anticipates low- to mid-single-digit growth in U.S. cement and concrete volumes, flat volumes in Mexico, and mid-single-digit price increases for both regions.

• Consolidated EBITDA growth projected at mid-single digits; FCF conversion rate above 60%.

• Total CapEx planned at $470 million, with $400 million for strategic/growth projects and $70 million for maintenance.

• Odessa plant expansion on track for commissioning in Q1 2025, with over $300 million CapEx allocated for the year.

• Year-end net debt/EBITDA expected to remain negative.