Grupo Argos (GRUPOARGOS) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was COP 15.156tn, EBITDA COP 5.112tn (+28.5% YoY), and net income COP 7.647tn (+423.8%), including material transaction gains.

• Portfolio value rose COP 4.3tn to COP 21.1tn, with two-thirds in infrastructure by year-end.

• Proposed split-off with Grupo SURA would reduce cross-holdings and advance infrastructure focus; completion is targeted for end-2025 or early 2026, subject to approvals.

Financial highlights

• FY2024 net income attributable to controlling interest was COP 4.544tn, up 396% YoY; separated revenue was COP 3.536tn, EBITDA COP 3.223tn and net income COP 2.532tn.

• Q4 revenue was COP 3.623tn, down 7.9% YoY; EBITDA was COP 613.0bn, down 17.7%, while net income rose to COP 307.2bn from COP 64.1bn.

• Transaction-related gains included COP 5.3tn from the Argos USA–Summit Materials combination and COP 2.6tn net profit from the Grupo Nutresa disinvestment and related agreement.

• Separated Q4 net loss was COP 276.2bn versus COP 32.7bn a year earlier; FY separated equity-method profit was COP 3.081tn.

Outlook and guidance

• Split-off completion is targeted for end-2025 or early 2026, subject to corporate and regulatory approvals; shareholder and bondholder meetings and authorization requests are on the 2025 roadmap.

• 2025 holding expenses are forecast near COP 80bn, with a 3% real reduction target; budgeted split-off-related extraordinary expenses are ~COP 30bn.

• 2025 net debt objective is ~COP 1.5tn; expected leverage is 1.5x net debt/adjusted EBITDA.

• Cement demand is expected to stabilize as inflation and mortgage rates ease; Celsia expects EBITDA recovery in 2025 as water conditions normalize.

• More than 300 MW of solar capacity is under construction for 2025 operations; the 9.9 MW Carreto wind project is also scheduled to start operations in 2025.