Grupo Carso (GCARSOA1) Q2 2025 earnings summary

Executive summary

• Consolidated sales reached MXN 46.3 billion, down 1.6% year-over-year, with mixed performance across divisions.

• Operating income rose 12.1% to MXN 6.3 billion, driven by MXN 1.9 billion in other income from the $620 million sale of Giant Cement Holding.

• EBITDA increased 18.8% to MXN 8.5 billion, with margin up 320 bps to 18.4%, reflecting extraordinary income.

• Controlling net income fell 42.3% to MXN 2.7 billion, mainly due to a foreign exchange loss versus a gain last year.

• Zamajal increased production and reduced costs in Ichalkil and Pokoch fields, with plans to exceed 25,000 barrels/day next year.

Financial highlights

• Grupo Condumex, Grupo Sanborns, Elementia Fortaleza, and Carso Energy posted revenue growth of 8.9%, 2.9%, 4.4%, and 6.5% respectively.

• Carso Infraestructura y Construcción (CICSA) sales dropped 29% due to fewer bids and project completions.

• Samajal/Zamajal Hydrocarbons contributed MXN 476 million in revenue as new operations were consolidated.

• EBITDA margin improved from 15.2% to 18.4% year-over-year.

• Net income fell 42.3% to MXN 2.7 billion, mainly due to foreign exchange losses.

Outlook and guidance

• Margin recovery expected in Sanborns through productivity and store optimization.

• New high-margin product contracts in Condumex anticipated to improve profitability.

• Zamajal expects to bring production to over 25,000 barrels/day next year, with margins above 25-30% depending on oil prices.

• Centauro del Norte gas pipeline's first phase to be completed by year-end, with full commissioning expected by the end of the following year.

• Five 3,000HP drilling rigs to work for PEMEX, with additional rigs expected to be deployed.