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%, surpassing the 2025 target despite challenging markets and economic uncertainties.

• Demonstrated operational agility, focusing on excellence, safety, talent, and sustainability, including a 33% reduction in recordable incidents and a 2.8% reduction in Scope 1 CO2 emissions.

• Outperformed U.S. cement market trends despite volume declines, leveraging flexible operations and cost control.

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

• Advanced sustainability initiatives, including solar projects and carbon capture partnerships.

Financial highlights

• Full-year consolidated net sales rose 0.2% to $1.37 billion, with U.S. sales up 3.9% and Mexico down 7.9%; Q4 sales decreased 1.3% to $335.3 million.

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

• Free cash flow for the year rose 37.7% to $321.8 million, with a 64.3% conversion rate.

• Q4 EBITDA increased 3.7% to $121.6 million (margin 36.3%); Q4 net income up 3.9% to $78 million.

• Fitch Ratings upgraded credit rating to 'BBB' with a stable outlook.

Outlook and guidance

• 2025 U.S. cement volumes expected to grow in low single digits, concrete in mid-single digits; Mexico volumes to remain flat.

• Cement and concrete pricing in both regions forecasted to rise in mid-single digits.

• Projected mid-single digit EBITDA growth for 2025; 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, with over $300 million CapEx planned for 2025 and commissioning expected in Q1 2026.