Cemex Q4 2025 CEMEX SAB de CV Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 CEMEX SAB de CV Earnings Call
Speaker #1: My name is Becky, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.
Speaker #1: If at any time you require Operator assistance, please press Start followed by 0, and we'll be happy to assist you. And now, I will turn the conference over to Lucy Rodriguez, Chief Communications Officer.
Speaker #1: Please
Speaker #1: proceed. Good morning and thank
Speaker #2: you for joining us for our fourth quarter 2025 conference call and webcast. We hope this call finds you well. I am joined today by Jaime Muguiro, our CEO, and by Maher Al-Haffar, our CFO.
Speaker #2: We will start our call with a review of our fourth quarter and full-year results, followed by an update on the progress made so far on our strategic plan, as well as our expectations and guidance for 2026.
Speaker #2: And then we will be happy to take your questions. We will host our Cemex Day on February 26th, where we will be providing additional details on our value creation strategy and medium-term financial targets.
Speaker #2: There will be a live video webcast available, and now I will hand the call over to
Speaker #2: Jaime. Thanks, Lucy, and
Speaker #3: good day to everyone. From a results perspective, my first year as CEO has been marked by sharp contrasts as we embarked on our transformation process.
Speaker #3: As expected, our first half performance was challenged by headwinds in Mexico related to the first year of a new government administration and a weaker peso, coupled with soft demand conditions in the US.
Speaker #3: In contrast, the significant second half improvement was predicated on Mexico's recovery as well as early results from our ambitious and disciplined transformation announced in the second quarter.
Speaker #3: As I assume my role as CEO in April, we moved quickly to introduce a multi-year strategic plan that included significant self-help measures designed to address the challenging market conditions.
Speaker #3: I want to recognize our team's across the organization, 2025 was a demanding year of transformation for our company. One that required discipline, resilience, and a strong execution mindset at every level.
Speaker #3: Our people delivered on operational excellence, maintained a strong focus on safety and customers, and executed important structural changes while continuing to run the business day to day.
Speaker #3: These results reflect their commitment and professionalism, and I want to thank them for their hard work and dedication. Under Project Cutting Edge, our cost efficiency program, we fully realized our 2025 EBITDA recurring savings target of $200 million.
Speaker #3: Leading to improved margins in all markets in the back half of the year. Importantly, this effort should continue to reap substantial benefits in 2026 and beyond.
Speaker #3: Our free cash flow from operations reached $1.4 billion in 2025, with a 46% conversion rate adjusting for one of items such as severance and discontinued operations.
Speaker #3: We continued progressing on our portfolio rebalancing and growth strategy. We divested most of our operations in Panama, while investing in targeted businesses in the US.
Speaker #3: The consolidation of couch aggregates, materially strengthened our aggregates position in the Southeast. We will continue seeking potential divestments in non-core markets to expand our presence primarily in the US through disciplined capital allocation with a clear focus on aggregates and adjacent businesses such as mortars, stuccos, renders, and plasters.
Speaker #3: In decarbonization, our consolidated growth CO2 emissions declined 2% in 2025, mainly driven by further reduction in clean air factor. Our operations in Europe continued to lead the way, having reached the cement Europe Association's 2030 growth CO2 emissions reduction targets five years ahead of schedule.
Speaker #3: But it was not just Europe. Notably, our operations in Mexico and South Central America and the Caribbean profitably achieved record clean air factor levels in 2025.
Speaker #3: Finally, we're making important strides in our commitment to deliver enhanced shareholder returns. In our upcoming general shareholders' meeting in late March, our board of directors will propose an annual cash dividend close to 40% higher than the one announced in 2025.
Speaker #3: Complementing our cash dividend and subject to annual approval by shareholders and other formalities, we will activate usage of our buyback program with the intent to buy back up to $500 million in shares over the next three years.
Jaime Muguiro: Europe continued to lead the way, having reached the Cement Europe Association's 2030 gross CO2 emissions reduction targets five years ahead of schedule. But it was not just Europe. Notably, our operations in Mexico, South Central America, and the Caribbean profitably achieved record clinker factor levels in 2025. Finally, we're making important strides on our commitment to deliver enhanced shareholder returns. In our upcoming general shareholders meeting in late March, our board of directors will propose an annual cash dividend close to 40% higher than the one announced in 2025. Complementing our cash dividend and subject to annual approval by shareholders and other formalities, we will activate usage of our buyback program, with the intent to buy back up to $500 million in shares over the next two years.
Jaime Muguiro: Europe continued to lead the way, having reached the Cement Europe Association's 2030 gross CO2 emissions reduction targets five years ahead of schedule. But it was not just Europe. Notably, our operations in Mexico, South Central America, and the Caribbean profitably achieved record clinker factor levels in 2025. Finally, we're making important strides on our commitment to deliver enhanced shareholder returns. In our upcoming general shareholders meeting in late March, our board of directors will propose an annual cash dividend close to 40% higher than the one announced in 2025. Complementing our cash dividend and subject to annual approval by shareholders and other formalities, we will activate usage of our buyback program, with the intent to buy back up to $500 million in shares over the next two years.
Speaker #3: I am proud of what we have accomplished so far and expect even better results in 2026, supported by improved market demand, operating leverage available to us in most markets, and continued cost and efficiency measures.
Having reached the cement Europe, associations 2030 grow CO2, emissions, reduction targets, 5 years ahead of a schedule.
Speaker #3: In our Cemex Day, on February 26th, we will dive into more detail on what you should expect from us in future years. With momentum building, in the second half on recovery in Mexico and solid results from EMEA, full-year consolidated sales and EBITDA rebounded.
But it was not just Europe; notably, our operations in Mexico, South Central America, and the Caribbean profitably achieved record clinker factor levels in 2025.
Finally, we're making important strides on our commitment to deliver enhanced shareholder returns.
Speaker #3: Indeed, fourth quarter sales and EBITDA increased by a double-digit rate supported by Project Cutting Edge savings and Mexico. EBITDA margin was stable for the full year again with a significant expansion in the second half as cost efficiencies began to materialize.
In our upcoming general shareholders meeting in late March, our board of directors will propose an annual cash dividend close to 40% higher than the one announced in 2025.
Complementing, our cash dividend and subject, to annual approval, by shareholders and other formalities. We will activate usage of our buyback program with the intent to buy back up to 500 million dollars in shares over the next 3 years.
Jaime Muguiro: I am proud of what we have accomplished so far, and expect even better results in 2026, supported by improved market demand, operating leverage available to us in most markets, and continued cost and efficiency measures. In our CEMEX Day, on 26 February, we will dive into more detail on what you should expect from us in future years. With momentum building in the second half on recovery in Mexico and solid results from EMEA, full year consolidated sales and EBITDA rebounded. Indeed, Q4 sales and EBITDA increased by a double-digit rate, supported by Project Cutting Edge savings and Mexico. EBITDA margin was stable for the full year, again, with a significant expansion in the second half as cost efficiencies began to materialize. All regions reported flat to improved EBITDA margin in 2025.
Jaime Muguiro: I am proud of what we have accomplished so far, and expect even better results in 2026, supported by improved market demand, operating leverage available to us in most markets, and continued cost and efficiency measures. In our CEMEX Day, on 26 February, we will dive into more detail on what you should expect from us in future years. With momentum building in the second half on recovery in Mexico and solid results from EMEA, full year consolidated sales and EBITDA rebounded. Indeed, Q4 sales and EBITDA increased by a double-digit rate, supported by Project Cutting Edge savings and Mexico. EBITDA margin was stable for the full year, again, with a significant expansion in the second half as cost efficiencies began to materialize. All regions reported flat to improved EBITDA margin in 2025.
Speaker #3: All regions reported flat to improved EBITDA margin in 2025. I am most proud of our performance in free cash flow from operations a key metric of our transformation.
Speaker #3: Excluding one-offs from severance payments and discontinued operations, free cash flow from operations grew by 50% to $1.4 billion. With a goal to achieve 50% conversion rate of EBITDA to operational free cash flow, we achieved 46% in 2025 after adjusting for one-off cash expenses.
I am proud of what we have accomplished so far and expect even better results in 2026, supported by improved market demand and operating leverage available to us in most markets, and continued cost and efficiency measures.
You know, in Q4 '26, we will dive into more detail on what you should expect from us in future years.
With momentum building in the second half on recovery in Mexico and solid results from emia.
Full year, Consolidated, sales and Ava, rebounded.
Speaker #3: After incorporating growth CAPEX, intangible assets, and other expenses, total adjusted free cash flow increased by more than $550 million in 2025 compared to prior year.
Indeed, fourth quarter sales in EMEA increased by a double-digit rate, supported by Project Karan savings and Mexico.
Speaker #3: This achievement underscores our focus on the levers we can control to ultimately deliver more cash to shareholders. For 2026, you should expect additional improvements on these metrics as we make further progress on our strategic initiatives.
Evita margin was stable for the full year. Again with a significant expansion in the second half as cost efficiencies began to materialize.
Jaime Muguiro: I am most proud of our performance in free cash flow from operations, a key metric of our transformation. Excluding one-offs from severance payments and discontinued operations, free cash flow from operations grew by 50% to $1.4 billion. With a goal to achieve 50% conversion rate of EBITDA to operational free cash flow, we achieved 46% in 2025, after adjusting for one-off cash expenses. After incorporating Growth CapEx, intangible assets, and other expenses, total adjusted free cash flow increased by more than $550 million in 2025, compared to prior year. These achievements underscore our focus on the levers we can control to ultimately deliver more cash to shareholders. For 2026, you should expect additional improvements on these metrics as we make further progress on our strategic initiatives.
Jaime Muguiro: I am most proud of our performance in free cash flow from operations, a key metric of our transformation. Excluding one-offs from severance payments and discontinued operations, free cash flow from operations grew by 50% to $1.4 billion. With a goal to achieve 50% conversion rate of EBITDA to operational free cash flow, we achieved 46% in 2025, after adjusting for one-off cash expenses. After incorporating Growth CapEx, intangible assets, and other expenses, total adjusted free cash flow increased by more than $550 million in 2025, compared to prior year. These achievements underscore our focus on the levers we can control to ultimately deliver more cash to shareholders. For 2026, you should expect additional improvements on these metrics as we make further progress on our strategic initiatives.
All regions reported flat to improved EBITDA margin in 2025.
I am most proud of our performance in free cash flow from operations, a geometric of our transformation.
Speaker #3: Finally, we recognized $538 million in goodwill impairment and asset write-down in 2025. Adjusting for this effect, net income would have increased by $41% to $1.5 billion.
Excluding $1 of severance payments and discontinued operations, free cash flow from operations grew by 50% to $1.4 billion.
Speaker #3: Consolidated cement and aggregates volumes in the fourth quarter grew by 1% and and 2% respectively. The continued growth in EMEA cement volumes more than offset volume performance in the US and the slight decline in Mexico.
With a goal to achieve a 50% conversion rate of EBITDA to operational free cash flow, we achieved 46% in 2025 after adjusting for $1 billion of cash expenses.
Speaker #3: Demand conditions in Mexico improved with average daily sales for our three core products growing on a sequential basis. Double-digit growth in aggregates volumes in the US reflects the consolidation of couch aggregates.
After incorporating growth capex, intangible assets and other expenses total adjusted free cash flow increased by more than 550 million dollars in 2025 compared to Prior year.
These achievements underscore our focus on the levers we can control to ultimately deliver more cash to shareholders.
Speaker #3: As construction activity is expected to increase in all of our regions, we anticipate a better demand outlook in 2026. With our focus on operational efficiency as well as available capacity, we are well positioned to capitalize on the strong operating leverage in our business as volumes begin to recover.
Jaime Muguiro: Finally, we recognized $538 million in goodwill impairment and asset write-down in 2025. Adjusting for this effect, net income would have increased by 41% to $1.5 billion. Consolidated cement and aggregates volumes in Q4 grew by 1% and 2%, respectively. The continued growth in EMEA cement volumes more than offset volume performance in the US and the slight decline in Mexico. Demand conditions in Mexico improved, with average daily sales for our three core products growing on a sequential basis. Double-digit growth in aggregates volumes in the US reflects the consolidation of Couch Aggregates. As construction activity is expected to increase in all of our regions, we anticipate a better demand outlook in 2026.
Jaime Muguiro: Finally, we recognized $538 million in goodwill impairment and asset write-down in 2025. Adjusting for this effect, net income would have increased by 41% to $1.5 billion. Consolidated cement and aggregates volumes in Q4 grew by 1% and 2%, respectively. The continued growth in EMEA cement volumes more than offset volume performance in the US and the slight decline in Mexico. Demand conditions in Mexico improved, with average daily sales for our three core products growing on a sequential basis. Double-digit growth in aggregates volumes in the US reflects the consolidation of Couch Aggregates. As construction activity is expected to increase in all of our regions, we anticipate a better demand outlook in 2026.
For 2026, you should expect additional improvements on these metrics, as we make further progress on our strategic initiatives.
Finally, we recognized 538 million in Goodwill impairment and asset right down in 2025.
Speaker #3: Consolidated cement ready-mix and aggregates prices increased by a low single digit in 2025, with positive performance in most markets. In Mexico, despite adverse demand conditions and in South Central American and the Caribbean region, prices rose mid-single digits in 2025.
Adjusting for this affect, net income would have increased by 41% to 1.5 billion dollars.
In consolidated cement and aggregates, volumes in the fourth quarter grew by 1% and 2%, respectively.
A continued growth in the MIA cement volumes, more than offsetting volume performance in the US and the slight decline in Mexico.
Speaker #3: As demand is expected to improve in all regions in 2026, we aim to continue recovering input cost inflation throughout our portfolio and see particular strength in continental Europe the carbon border adjustment mechanism, along with the gradual phase-out of free CO2 allowances, under the EU ETS, should support favorable pricing dynamics as the industry looks to recover the rising carbon emission costs.
Demand conditions in Mexico improved, with average daily sales for our three core products growing on a sequential basis.
Double digit growth in Aggregates volumes in the US, reflects the consolidation of couch aggregates.
As construction activity, is suspected to increase in all of our regions. We anticipate a better, demand Outlook in 2026
Jaime Muguiro: With our focus on operational efficiency as well as available capacity, we are well positioned to capitalize on the strong operating leverage in our business as volumes begin to recover. Consolidated cement, ready-mix, and aggregates prices increased by a low single digit in 2025, with positive performance in most markets. In Mexico, despite adverse demand conditions, and in South Central America and the Caribbean region, prices rose mid-single digits in 2025. As demand is expected to improve in all regions in 2026, we aim to continue recovering input cost inflation throughout our portfolio and see particular strength in continental Europe. The carbon border adjustment mechanism, along with a gradual phase-out of free CO2 allowances under the EU ETS, should support favorable pricing dynamics as the industry looks to recover the rising carbon emission costs.
Jaime Muguiro: With our focus on operational efficiency as well as available capacity, we are well positioned to capitalize on the strong operating leverage in our business as volumes begin to recover. Consolidated cement, ready-mix, and aggregates prices increased by a low single digit in 2025, with positive performance in most markets. In Mexico, despite adverse demand conditions, and in South Central America and the Caribbean region, prices rose mid-single digits in 2025. As demand is expected to improve in all regions in 2026, we aim to continue recovering input cost inflation throughout our portfolio and see particular strength in continental Europe. The carbon border adjustment mechanism, along with a gradual phase-out of free CO2 allowances under the EU ETS, should support favorable pricing dynamics as the industry looks to recover the rising carbon emission costs.
Speaker #3: Full-year EBITDA performance was mainly explained by Project Cutting Edge cost efficiencies and higher prices. Despite ongoing cost inflation, we were able to reduce our total cost base by close to $100 million.
With our focus on operational efficiency as well as available capacity. We are well, positioned to capitalize on the strong. Operating leverage in our business as volumes begin to recover.
Consolidated cement Ready, Mix and Aggregates prices increased by a low single digit in 2025.
Speaker #3: Consolidated margins were supported by margin expansion of close to 2 percentage points in both Mexico and EMEA, significant FX headwinds in the first half were almost fully offset by a reversal in the second half.
With positive performance in most markets.
Caribbean region, Prices rose. Mid single digits in 2025.
Speaker #3: In our urbanization solutions portfolio, higher EBITDA in the admixtures business in EMEA partially compensated for soft performance in Mexico and the US. 2025 marked a year of profound transformation for Cemex.
As demand is suspected to improve in Norwegians, in 2026, we aim to continue recovering input cost inflation throughout our portfolio.
And we see particular strength in Continental Europe.
Speaker #3: Centered on achieving operational excellence and delivering shareholder return, to that end, we defined a set of strategic priorities focused on enhancing profitability, increasing free cash flow conversion, improving operational efficiency, and ensuring returns above our cost of capital in every asset we manage.
The carbon border adjustment mechanism, along with a gradual phase-out of free CO2 allowances under the EU ETS,
Jaime Muguiro: All year, EBITDA performance was mainly explained by Project Cutting Edge cost efficiencies and higher prices. Despite ongoing cost inflation, we were able to reduce our total cost base by close to $100 million. Consolidated margins were supported by margin expansion of close to 2 percentage points in both Mexico and EMEA. Significant FX headwinds in the first half were almost fully offset by a reversal in the second half... In our urbanization solutions portfolio, higher EBITDA in the admixtures business in EMEA partially compensated for soft performance in Mexico and the US. 2025 marked a year of profound transformation for CEMEX, centered on achieving operational excellence and delivering shareholder return. To that end, we defined a set of strategic priorities focused on enhancing profitability, increasing free cash flow conversion, improving operational efficiency, and ensuring returns above our cost of capital in every asset we manage.
Jaime Muguiro: All year, EBITDA performance was mainly explained by Project Cutting Edge cost efficiencies and higher prices. Despite ongoing cost inflation, we were able to reduce our total cost base by close to $100 million. Consolidated margins were supported by margin expansion of close to 2 percentage points in both Mexico and EMEA. Significant FX headwinds in the first half were almost fully offset by a reversal in the second half... In our urbanization solutions portfolio, higher EBITDA in the admixtures business in EMEA partially compensated for soft performance in Mexico and the US. 2025 marked a year of profound transformation for CEMEX, centered on achieving operational excellence and delivering shareholder return. To that end, we defined a set of strategic priorities focused on enhancing profitability, increasing free cash flow conversion, improving operational efficiency, and ensuring returns above our cost of capital in every asset we manage.
Should support favorable pricing dynamics as the industry looks to recover the rising carbon emission costs.
All year, EBITDA performance was mainly explained by project Cutting Edge cost efficiencies and higher prices.
Speaker #3: As I explained earlier, in 2025, we made significant progress on our plan. First, we expanded our cost reduction program, Project Cutting Edge, to recurring savings of $400 million by 2027, importantly half of this amount is related to overhead actions already taken in 2025.
Despite ongoing cost inflation, we were able to reduce our total cost base by close to 100 million dollars.
Consolidated margins were supported by margin expansion of close to 2 percentage points in both Mexico and emia.
Significant ethics headwinds in the first half were almost fully offset by a reversal in the second half.
Speaker #3: These actions should deliver additional savings of $125 million in 2026. The $200 million savings realized in 2025 drove a decline in cost of goods sold and operating expenses as a percentage of sales in most regions, with higher EBITDA margin across our portfolio.
in our urbanization Solutions, portfolio higher evida in the administration's business in Neah partially compensated for soft performance in Mexico and the US
2025 marked a year of profound transformation for MX.
Centered on achieving operational, excellence and delivering shareholder return.
Speaker #3: We introduced EBIT, free cash flow conversion, and a spread of ROIC C over WACC as new performance metrics for our operations. We also advanced on the implementation of operating initiatives such as the improvement in kiln efficiency in the US and the optimization of fuel mix in Mexico.
To that end, we Define a set of strategic priorities focused on enhancing profitability.
Jaime Muguiro: As I explained earlier, in 2025, we made significant progress on our plan. First, we expanded our cost reduction program, Project Cutting Edge, to recurring savings of $400 million by 2027. Importantly, half of this amount is related to overhead actions already taken in 2025. These actions should deliver additional savings of $125 million in 2026. The $200 million savings realized in 2025 drove a decline in cost of goods sold and operating expenses as a percentage of sales in most regions, with higher EBITDA margin across our portfolio. We introduced EBIT, free cash flow conversion, and a spread of ROIC over WACC as new performance metrics for our operations. We also advanced on the implementation of operating initiatives, such as the improvement in kiln efficiency in the US and the optimization of fuel mix in Mexico.
Jaime Muguiro: As I explained earlier, in 2025, we made significant progress on our plan. First, we expanded our cost reduction program, Project Cutting Edge, to recurring savings of $400 million by 2027. Importantly, half of this amount is related to overhead actions already taken in 2025. These actions should deliver additional savings of $125 million in 2026. The $200 million savings realized in 2025 drove a decline in cost of goods sold and operating expenses as a percentage of sales in most regions, with higher EBITDA margin across our portfolio. We introduced EBIT, free cash flow conversion, and a spread of ROIC over WACC as new performance metrics for our operations. We also advanced on the implementation of operating initiatives, such as the improvement in kiln efficiency in the US and the optimization of fuel mix in Mexico.
Increasing free cash flow conversion, improving operational, efficiency, and ensuring returns above our cost of capital in every asset, we manage.
As I explained earlier in 2025, we made significant progress on our plan.
Speaker #3: These efforts drove a 17% increase in EBITDA in the second half and a 25% jump in EBIT, a key metric of our transformation. With regard to free cash flow, we adjusted our maintenance CAPEX spend and reviewed all projects under our growth CAPEX pipeline.
First, we expanded our cost Reduction Program project, Cutting Edge to recurring Savings of 400 million dollars by 2027. Importantly, half of this amount is related to overhead actions already taken in 2025.
Speaker #3: We conducted a detailed evaluation of every asset in our portfolio, defining a clear action plan for those underperforming assets. This plan is expected to positively contribute to our results in the future.
These actions should deliver additional savings of $125 million in 2026.
Speaker #3: And we also revamped our variable compensation plan, effective and to better align with long-term value creation and shareholder return. I am confident that as we continue working on our strategic plan, we will identify additional opportunities to further support margins while aiming to increase free cash flow conversion and return on capital.
The $200 million savings we realized in 2025 drove a decline in cost of goods sold and operating expenses as a percentage of sales in most regions, with higher EPA margin across our portfolio.
Introduced IBID free cash flow conversion, and a spread of ROY, OverWatch as new performance metrics for our operations.
Jaime Muguiro: These efforts drove a 17% increase in EBITDA in the second half, and a 25% jump in EBIT, a key metric of our transformation. With regard to free cash flow, we adjusted our Maintenance CapEx spend and reviewed all projects under our Growth CapEx pipeline. We conducted a detailed evaluation of every asset in our portfolio, defining a clear action plan for those underperforming assets. This plan is expected to positively contribute to our results in the future. We also revamped our variable compensation plan, effective January, to reflect these new metrics and to better align with long-term value creation and shareholder return. I am confident that as we continue working on our strategic plan, we will identify additional opportunities to further support margins, while aiming to increase free cash flow conversion and return on capital. Now, back to you, Lucy.
Jaime Muguiro: These efforts drove a 17% increase in EBITDA in the second half, and a 25% jump in EBIT, a key metric of our transformation. With regard to free cash flow, we adjusted our Maintenance CapEx spend and reviewed all projects under our Growth CapEx pipeline. We conducted a detailed evaluation of every asset in our portfolio, defining a clear action plan for those underperforming assets. This plan is expected to positively contribute to our results in the future. We also revamped our variable compensation plan, effective January, to reflect these new metrics and to better align with long-term value creation and shareholder return. I am confident that as we continue working on our strategic plan, we will identify additional opportunities to further support margins, while aiming to increase free cash flow conversion and return on capital. Now, back to you, Lucy.
We also advanced on the implementation of operating initiatives, such as the improvement in kiln efficiency in the US and the optimization of fuel mix in Mexico.
Speaker #3: And now back to you,
Speaker #3: Lucy. Thank you, Jaime.
Speaker #2: We are encouraged by the volume recovery in the second half in Mexico, as well as the contribution from our cost and efficiency initiatives. Sales growth accelerated in the quarter, marking the first quarter of year-over-year growth since the election in Mexico in 2024.
These efforts drove a 17% increase in EBITDA in the second half and a 25% jump in EBIT. A geometric of our transformation.
With regard to free cash flow. We adjusted our maintenance capex, spend and reviewed. All projects under our growth, capex pipeline,
Speaker #2: EBITDA increased by 20% like to like, and margin expanded by an impressive 5 percentage points. Importantly, EBITDA also increased sequentially, contrary to historical seasonality patterns.
We conducted a detailed evaluation of every asset in our portfolio, defining a clear action plan for those underperforming assets.
This plan is expected to positively contribute to our results in the future.
Speaker #2: Further underscoring our recovery trend. Demand conditions in Mexico continued to improve, with average daily cement sales increasing by 8% sequentially, again outperforming historical seasonality patterns.
And we also revamped our variable compensation plan effective January to reflect these new metrics and to better align with long-term value creation and shareholder return.
Speaker #2: As anticipated, public spending on social programs and infrastructure is beginning to gain momentum, albeit from a low base. Rural road projects in which we typically have a large participation rate as well as other programs show early signs of increased activity, benefiting bagged cement volumes.
[Company Representative] (CEMEX): Thank you, Jaime. We are encouraged by the volume recovery in the second half in Mexico, as well as the contribution from our cost and efficiency initiatives. Sales growth accelerated in the quarter, marking the first quarter of year-over-year growth since the election in Mexico in 2024. EBITDA increased by 20% like-for-like, and margin expanded by an impressive 5 percentage points. Importantly, EBITDA also increased sequentially, contrary to historical seasonality patterns, further underscoring our recovery trend. Demand conditions in Mexico continued to improve, with average daily cement sales increasing by 8% sequentially, again, outperforming historical seasonality patterns. As anticipated, public spending on social programs and infrastructure is beginning to gain momentum, albeit from a low base. Rural road projects, in which we typically have a large participation rate, as well as other programs, show early signs of increased activity, benefiting bagged cement volumes.
Lucy Rodriguez: Thank you, Jaime. We are encouraged by the volume recovery in the second half in Mexico, as well as the contribution from our cost and efficiency initiatives. Sales growth accelerated in the quarter, marking the first quarter of year-over-year growth since the election in Mexico in 2024. EBITDA increased by 20% like-for-like, and margin expanded by an impressive 5 percentage points. Importantly, EBITDA also increased sequentially, contrary to historical seasonality patterns, further underscoring our recovery trend. Demand conditions in Mexico continued to improve, with average daily cement sales increasing by 8% sequentially, again, outperforming historical seasonality patterns. As anticipated, public spending on social programs and infrastructure is beginning to gain momentum, albeit from a low base. Rural road projects, in which we typically have a large participation rate, as well as other programs, show early signs of increased activity, benefiting bagged cement volumes.
I am confident that as we continue working on our strategic plan, we will identify additional opportunities to further support margins, while aiming to increase free cash flow conversion and return on capital. And now back to you, Lucy.
Thank you, haime. We are encouraged by the volume recovery in the second half in Mexico, as well as the contribution from our cost and efficiency initiatives.
Speaker #2: In infrastructure, while conditions are still soft, we began construction works on projects such as the Carretero to Irapuato rail line, along with the continuation of the AIFA airport to Pachuca line, with other projects expected in the near term.
Sales growth accelerated in the quarter marking the first quarter of year-over-year growth since the election in Mexico in 2024
EBITDA increased by 20% like to like, and margin expanded by an impressive 5 percentage points.
Speaker #2: In addition, we see increased activity in projects related to the 2026 World Cup in Mexico City, Monterrey, and Guadalajara. The social housing program, with the goal of constructing 1.8 million units through 2030, is also beginning to pick up speed.
Importantly, EBITDA also increased sequentially, contrary to historical seasonality patterns, further underscoring our recovery trend.
Speaker #2: In the fourth quarter, while off a small base, we doubled our participation in projects under construction to 58,000 units. Additionally, we have also seen an important pickup in projects under negotiation for the program, currently 105,000 units.
As anticipated public spending on social programs and infrastructure.
Momentum, albeit from a low base.
[Company Representative] (CEMEX): In infrastructure, while conditions are still soft, we began construction works on projects such as the Querétaro to Irapuato rail line, along with the continuation of the AIFA Airport to Pachuca line, with other projects expected in the near term. In addition, we see increased activity in projects related to the 2026 World Cup in Mexico City, Monterrey, and Guadalajara. The social housing program, with the goal of constructing 1.8 million units through 2030, is also beginning to pick up speed. In the Q4, while off a small base, we doubled our participation in projects under construction to 58,000 units. Additionally, we have also seen an important pickup in projects under negotiation for the program, currently 105,000 units. Last year, prices for our three core products increased by mid-single digits.
Lucy Rodriguez: In infrastructure, while conditions are still soft, we began construction works on projects such as the Querétaro to Irapuato rail line, along with the continuation of the AIFA Airport to Pachuca line, with other projects expected in the near term. In addition, we see increased activity in projects related to the 2026 World Cup in Mexico City, Monterrey, and Guadalajara. The social housing program, with the goal of constructing 1.8 million units through 2030, is also beginning to pick up speed. In the Q4, while off a small base, we doubled our participation in projects under construction to 58,000 units. Additionally, we have also seen an important pickup in projects under negotiation for the program, currently 105,000 units. Last year, prices for our three core products increased by mid-single digits.
Rural Road projects in which we typically have a large participation rate as well as other programs show. Early signs of increased activity benefiting bag cement volume
Speaker #2: Last year, prices for our three core products increased by mid-single digits. For 2026, we will continue with our strategy to at least recover input cost inflation.
Speaker #2: In that effort, we recently announced a 10% price increase in cement and ready mix effective January our transformation program is leading to a more agile and efficient organization in Mexico.
in infrastructure. While conditions are still soft. We began construction works on projects such as the correct to rail line along with the continuation of the iea airport to Pacha line with other projects expected in the near term.
Speaker #2: As Jaime mentioned, last year we achieved important cost savings in the country, driving material increases in our cement and ready mix margins, despite the challenging market backdrop.
In addition, we see increased activity in projects related to the 2026 World Cup in Mexico City, Monterrey, and Guadalajara.
The social housing program with the goal of constructing 1.8 million units. Through 2030 is also beginning to pick up speed
Speaker #2: As demand conditions improve, operating leverage, along with cost initiatives, should support further margin expansion. In 2026, we expect that volume recovery, pricing, and cost savings will be important drivers of growth.
in the fourth quarter, while off a small base, we doubled our participation in projects under construction to 58 thousand units.
Speaker #2: Our US operations posted a record fourth quarter EBITDA with margin near record highs, underscoring the resilience of our business in challenging market conditions. Performance was driven by project cutting edge, facilitating higher operating efficiency, along with the consolidation of couch aggregates.
Additionally, we have also seen an important pickup in projects under negotiation for the program. Currently, 105,000 units.
[Company Representative] (CEMEX): For 2026, we will continue with our strategy to at least recover input cost inflation. In that effort, we recently announced a 10% price increase in cement and ready-mix, effective January. Our transformation program is leading to a more agile and efficient organization in Mexico. As Jaime mentioned, last year, we achieved important cost savings in the country, driving material increases in our cement and ready-mix margins, despite the challenging market backdrop. As demand conditions improve, operating leverage, along with cost initiatives, should support further margin expansion. In 2026, we expect that volume recovery, pricing, and cost savings will be important drivers of growth. Our US operations posted a record Q4 EBITDA, with margin near record highs, underscoring the resilience of our business in challenging market conditions. Performance was driven by Project Cutting Edge, facilitating higher operating efficiency, along with the consolidation of Couch Aggregates.
Lucy Rodriguez: For 2026, we will continue with our strategy to at least recover input cost inflation. In that effort, we recently announced a 10% price increase in cement and ready-mix, effective January. Our transformation program is leading to a more agile and efficient organization in Mexico. As Jaime mentioned, last year, we achieved important cost savings in the country, driving material increases in our cement and ready-mix margins, despite the challenging market backdrop. As demand conditions improve, operating leverage, along with cost initiatives, should support further margin expansion. In 2026, we expect that volume recovery, pricing, and cost savings will be important drivers of growth. Our US operations posted a record Q4 EBITDA, with margin near record highs, underscoring the resilience of our business in challenging market conditions. Performance was driven by Project Cutting Edge, facilitating higher operating efficiency, along with the consolidation of Couch Aggregates.
Last year prices for our 3 core products increased by mid single digits.
In that effort. We recently announced a 10% price increase in cement and Ready. Mix effective January.
Speaker #2: Demand continues to reflect strength in infrastructure, with some bright spots in the industrial sector, offset by continued softness in residential. The 10% increase in aggregate volumes was driven by investments coming online in fourth quarter, as well as the effective couch aggregates.
Our transformation program is leading to a more agile and efficient organization in Mexico. As time I mentioned, last year we achieved important cost Savings in the country. Driving material increases in our cement and Ready Mix margins. Despite the challenging Market backdrop
Speaker #2: With three consecutive years of cement volume declines, we have seen increased competitive pressure in select markets in our footprint, explaining the slight decline in sequential cement prices.
as demand conditions improved operating leverage along with cost initiatives should support further margin expansion.
Speaker #2: In aggregates, prices rose 4% in the year on a mixed adjusted basis. Adjusting for the couch acquisition, sequential prices in aggregates remained flat in fourth quarter.
In 2026. We expect that volume recovery pricing and cost savings will be important. Drivers of growth.
Our U.S. operations posted a record fourth quarter EBITDA, with margin near record highs, underscoring the resilience of our business in challenging market conditions.
Speaker #2: The expansion in quarterly margin was primarily due to project cutting edge, where we saw material reduction in cost of goods sold as a percentage of sales.
[Company Representative] (CEMEX): Demand continues to reflect strengthened infrastructure, with some bright spots in the industrial sector, offset by continued softness in residential. The 10% increase in aggregates volumes was driven by investments coming online in Q4, as well as the effect of Couch Aggregates. With 3 consecutive years of cement volume declines, we have seen increased competitive pressure in select markets in our footprint, explaining the slight decline in sequential cement prices. In aggregates, prices rose 4% in the year on a mix-adjusted basis. Adjusting to the Couch Aggregates acquisition, sequential prices in aggregates remained flat in the fourth quarter. The expansion in quarterly margin was primarily due to Project Cutting Edge, where we saw a material reduction in cost of goods sold as a percentage of sales. The slight decline in full year margin is largely explained by disruptions from difficult weather conditions in the first half.
Lucy Rodriguez: Demand continues to reflect strengthened infrastructure, with some bright spots in the industrial sector, offset by continued softness in residential. The 10% increase in aggregates volumes was driven by investments coming online in Q4, as well as the effect of Couch Aggregates. With 3 consecutive years of cement volume declines, we have seen increased competitive pressure in select markets in our footprint, explaining the slight decline in sequential cement prices. In aggregates, prices rose 4% in the year on a mix-adjusted basis. Adjusting to the Couch Aggregates acquisition, sequential prices in aggregates remained flat in the fourth quarter. The expansion in quarterly margin was primarily due to Project Cutting Edge, where we saw a material reduction in cost of goods sold as a percentage of sales. The slight decline in full year margin is largely explained by disruptions from difficult weather conditions in the first half.
Performance was driven by project, Cutting Edge, facilitating higher operating, efficiency along with the consolidation of couch aggregates.
Speaker #2: The slight decline in full year margin is largely explained by disruptions from difficult weather conditions in the first half. As Jaime mentioned, our efforts to improve cement kiln efficiency as part of project cutting edge continue to pay off, with domestic production expanding by 500,000 tons last year.
Demand continues to reflect, strengthen infrastructure with some bright spots in the industrial sector.
offset by continued softness in residential
The 10% increase in aggregate volumes was driven by Investments coming online in fourth quarter, as well as the effective couch aggregates.
Speaker #2: This increase in domestic production replaced lower margin imports, leading to relevant EBITDA margin expansion. We expect domestic productivity to further increase in 2026. Our aggregates business continues to grow through both organic and inorganic means.
With three consecutive years of cement volume declines, we have seen increased competitive pressure in select markets in our footprint, explaining the slight decline in sequential cement prices.
In Aggregates Prices rose 4% in the year on a mixed adjusted basis.
Speaker #2: The 39% contribution of the aggregates business to US EBITDA is almost equal to that of cement. We continue to focus on initiatives to drive additional efficiencies in our aggregate operations, as well as expand our reserve base.
Adjusting for the couch, acquisition sequential prices in Aggregates remained flat in fourth quarter.
The expansion in quarterly margin was primarily due to project Cutting Edge, where we saw material reduction, in cost of goods sold as a percentage of sales.
Speaker #2: Examples include the recent consolidation of couch aggregates, along with expansion projects in Florida and Arizona which will come online later this year. These additions support volume guidance of mid-single digit increase for aggregates in 2026.
The site declined. In full year margin is largely explained by disruptions from difficult. Weather conditions in the first half,
[Company Representative] (CEMEX): As Jaime mentioned, our efforts to improve cement kiln efficiency as part of Project Cutting Edge continued to pay off, with domestic production expanding by 500,000 tons last year. This increase in domestic production replaced lower margin imports, leading to relevant EBITDA margin expansion. We expect domestic productivity to further increase in 2026. Our aggregates business continues to grow through both organic and inorganic means. The 39% contribution of the aggregates business to US EBITDA is almost equal to that of cement. We continue to focus on initiatives to drive additional efficiencies in our aggregate operations, as well as expand our reserve base. Examples include the recent consolidation of Couch Aggregates, along with expansion projects in Florida and Arizona, which will come online later this year. These additions support volume guidance of mid-single digit increase for aggregates in 2026.
Lucy Rodriguez: As Jaime mentioned, our efforts to improve cement kiln efficiency as part of Project Cutting Edge continued to pay off, with domestic production expanding by 500,000 tons last year. This increase in domestic production replaced lower margin imports, leading to relevant EBITDA margin expansion. We expect domestic productivity to further increase in 2026. Our aggregates business continues to grow through both organic and inorganic means. The 39% contribution of the aggregates business to US EBITDA is almost equal to that of cement. We continue to focus on initiatives to drive additional efficiencies in our aggregate operations, as well as expand our reserve base. Examples include the recent consolidation of Couch Aggregates, along with expansion projects in Florida and Arizona, which will come online later this year. These additions support volume guidance of mid-single digit increase for aggregates in 2026.
As Tim May mentioned, our efforts to improve cement kiln and efficiency as part of Project Cutting Edge continued to pay off, with domestic production expanding by 500,000 tons last year.
Speaker #2: We will be drilling
Speaker #1: Down in more detail on the drivers of our US aggregates business at our Analyst Day in late February . Looking ahead , we expect infrastructure .
Speaker #1: Looking ahead , we expect infrastructure to drive demand as Iija . Transportation projects continue to roll out . About 50% of funds under Iija have been spent with peak spending levels expected this year .
This increase in domestic production replaces lower-margin imports, leading to relevant EBITDA margin expansion. We expect domestic productivity to further increase in 2026.
Our aggregate business.
Speaker #1: We are encouraged by the December release of Highway Awards , the strongest on record , with most markets reporting positive momentum . The industrial and commercial sector continues to benefit from data centers , energy investments and manufacturing chip facilities in our markets residential .
Continues to grow through, both organic and inorganic beings. The 39% contribution of the Aggregates business. To USA is almost equal to that of cement.
We continue to focus on initiatives to drive additional efficiencies in our aggregate operations, as well as expand our reserve base.
Speaker #1: family While single remains soft . We see tailwinds demographic boosting demand over the medium term as affordability and market sentiment improve with a better demand outlook for 2026 .
Examples include the recent consolidation of couch Aggregates along with expansion projects in Florida and Arizona, which will come online later this year.
Digit increase for Aggregates in 2026.
[Company Representative] (CEMEX): We will be drilling down in more detail on the drivers of our US aggregates business at our Analyst Day in late February. Looking ahead, we expect infrastructure to drive demand as IIJA transportation projects continue to roll out. About 50% of funds under IIJA have been spent, with peak spending levels expected this year. We are encouraged by the December release of highway awards, the strongest on record, with most markets reporting positive momentum. The industrial and commercial sector continues to benefit from data centers, energy investments, and chip manufacturing facilities in our markets. While single-family residential remains soft, we see demographic tailwinds boosting demand over the medium term as affordability and market sentiment improve. With a better demand outlook for 2026, we have announced mid-single digit price increases in cement, ready-mix, and aggregates in several markets, aiming to at least recover input cost inflation.
Lucy Rodriguez: We will be drilling down in more detail on the drivers of our US aggregates business at our Analyst Day in late February. Looking ahead, we expect infrastructure to drive demand as IIJA transportation projects continue to roll out. About 50% of funds under IIJA have been spent, with peak spending levels expected this year. We are encouraged by the December release of highway awards, the strongest on record, with most markets reporting positive momentum. The industrial and commercial sector continues to benefit from data centers, energy investments, and chip manufacturing facilities in our markets. While single-family residential remains soft, we see demographic tailwinds boosting demand over the medium term as affordability and market sentiment improve. With a better demand outlook for 2026, we have announced mid-single digit price increases in cement, ready-mix, and aggregates in several markets, aiming to at least recover input cost inflation.
Speaker #1: We have announced mid-single digit price increases in cement ready mix and aggregates in several markets , aiming to at least recover input cost inflation .
We will be drilling down in more detail on the drivers of our us Aggregates business at our analyst day in late February.
Speaker #1: It is important to highlight that , as in the case of Mexico , operational leverage wants volumes recover should lead to higher profitability in the EMEA region .
Looking ahead. We expect infrastructure to drive demand as iija Transportation projects, continue to roll out.
About 50% of funds. Under iija have been spent with Peak spending levels expected this year.
Speaker #1: EBITDA and EBITDA margin achieved , records in 2025 , led by higher volumes and prices , as well as cost efficiencies under project cutting edge .
We are encouraged by the December release of Highway Awards.
The strongest on record with most markets, reporting, positive momentum.
Speaker #1: Pro forma for a number of one off adjustments in fourth quarter EBITDA and EMEA grew by a digit double rate , with margin one percentage expansion of point supported by positive performance in both Europe and Middle East and Africa .
The industrial and commercial sector continues to benefit from data center energy investments and chip manufacturing facilities in our markets.
While single family residential remains soft, we see demographic Tailwind boosting demand over the medium term.
Speaker #1: Demand conditions continued with a positive trend , with cement and ready mix volumes growing by seven and 3% respectively , and by a mid-single digit rate for the year .
As affordability and Market sentiment improved.
Speaker #1: Full year cement ready mix prices in EMEA increased by low single digits on a sequential basis . Cement price variation in fourth quarter is mainly explained by a geographic mix effect in Despite difficult weather conditions .
[Company Representative] (CEMEX): It is important to highlight that, as in the case of Mexico, operational leverage, once volumes recover, should lead to higher profitability. In the EMEIA region, EBITDA and EBITDA margin achieved records in 2025, led by higher volumes and prices, as well as cost efficiencies under Project Cutting Edge. Pro forma, for a number of one-off adjustments in Q4, EBITDA in EMEIA grew by a double-digit rate, with margin expansion of one percentage point, supported by positive performance in both Europe, Middle East, and Africa. Demand conditions continued with a positive trend, with cement and ready-mix volumes growing by 7% and 3%, respectively, and by a mid-single digit rate for the year. Full year cement and ready-mix prices in EMEIA increased by low single digits. On a sequential basis, cement price variation in Q4 is mainly explained by a geographic mix effect.
Lucy Rodriguez: It is important to highlight that, as in the case of Mexico, operational leverage, once volumes recover, should lead to higher profitability. In the EMEIA region, EBITDA and EBITDA margin achieved records in 2025, led by higher volumes and prices, as well as cost efficiencies under Project Cutting Edge. Pro forma, for a number of one-off adjustments in Q4, EBITDA in EMEIA grew by a double-digit rate, with margin expansion of one percentage point, supported by positive performance in both Europe, Middle East, and Africa. Demand conditions continued with a positive trend, with cement and ready-mix volumes growing by 7% and 3%, respectively, and by a mid-single digit rate for the year. Full year cement and ready-mix prices in EMEIA increased by low single digits. On a sequential basis, cement price variation in Q4 is mainly explained by a geographic mix effect.
With a better demand outlook for 2026. We have announced mid single digit, price increases in cement, Ready, Mix and Aggregates in several markets aiming to at least recover input costs inflation.
It is important to highlight that as in the case of Mexico operational, leverage once volumes recover should lead to higher profitability.
Speaker #1: We posted high single digit growth in cement volume . Performance was primarily related to infrastructure projects in Eastern Europe , and sustained housing activity and infrastructure investment in Spain .
In the Amia region. Ibaan IBA, margin achieved records in 2025, led by higher volumes and prices as well as cost. Efficiencies under project Cutting Edge.
Speaker #1: On a sequential basis . Prices in Europe were stable in fourth quarter price dynamics for full year 2025 are explained by geographic mix and limited competitive pressure in specific markets .
Pro-forma for a number of one-off adjustments in the fourth quarter, Evita and MIA grew by a double-digit rate with margin expansion of 1 percentage point, supported by positive performance in both Europe and Middle East in Africa.
Speaker #1: Going forward . Construction activity in Europe is expected to be supported by infrastructure investment backed EU by funding . The German Infrastructure Bill , providing some tailwinds along with the gradual recovery in the residential sector in the Middle East and Africa .
Demand conditions continued with a positive trend, with cement and ready-mix volumes growing by 7% and 3%, respectively, and by a mid single-digit rate for the year.
Full year cement and ready. Mix prices in Amia increase by low single digits.
Speaker #1: Cement and ready mix volumes in fourth quarter , expanded by 11 and 9% respectively . Construction activity across these markets is recovering on the back of housing and non-residential projects , with Egypt also benefiting from large scale infrastructure projects and the start of mega tourism development .
[Company Representative] (CEMEX): In Europe, despite difficult weather conditions, we posted high single-digit growth in cement volume. Performance was primarily related to infrastructure projects in Eastern Europe and sustained housing activity and infrastructure investment in Spain. On a sequential basis, prices in Europe were stable in Q4. Price dynamics for full year 2025 are explained by geographic mix and limited competitive pressure in specific markets. Going forward, construction activity in Europe is expected to be supported by infrastructure investment backed by EU funding, the German infrastructure bill, providing some tailwinds, along with a gradual recovery in the residential sector. In the Middle East and Africa, cement and ready-mix volumes in Q4 expanded by 11% and 9%, respectively. Construction activity across these markets is recovering on the back of housing and non-residential projects, with Egypt also benefiting from large-scale infrastructure projects and the start of mega tourism development.
Lucy Rodriguez: In Europe, despite difficult weather conditions, we posted high single-digit growth in cement volume. Performance was primarily related to infrastructure projects in Eastern Europe and sustained housing activity and infrastructure investment in Spain. On a sequential basis, prices in Europe were stable in Q4. Price dynamics for full year 2025 are explained by geographic mix and limited competitive pressure in specific markets. Going forward, construction activity in Europe is expected to be supported by infrastructure investment backed by EU funding, the German infrastructure bill, providing some tailwinds, along with a gradual recovery in the residential sector. In the Middle East and Africa, cement and ready-mix volumes in Q4 expanded by 11% and 9%, respectively. Construction activity across these markets is recovering on the back of housing and non-residential projects, with Egypt also benefiting from large-scale infrastructure projects and the start of mega tourism development.
On the sequential basis cement price variation in fourth quarter is mainly explained by a geographic mixed effect.
In Europe, despite difficult weather conditions, we posted high single-digit growth in cement volume.
Performance was primarily related to infrastructure projects in Eastern Europe and sustained housing activity and infrastructure investment in Spain.
Speaker #1: Our operations in Europe remain at the forefront of our decarbonisation efforts , reaching a level of 507kg of CO2 gross emissions on a per tonne cement of basis in 2025 , representing a 19% reduction versus 2020 .
On a sequential basis prices. In Europe were stable in fourth quarter.
Price Dynamics for full year, 2025 are explained by Geographic mix and limited competitive pressure in specific markets.
Speaker #1: This level is already surpassing cement Europe Association's 2030 emissions target for cement production . Further reinforcing our position as an industry leader . The implementation of the carbon border adjustment mechanism in continental Europe , along with the gradual phase out of free EU ETS allowances this year , should be supportive of cement pricing in 2026 and beyond .
Going forward construction activity in Europe is expected to be supported by infrastructure investment backed by EU funding.
The German infrastructure, Bill providing some Tailwinds along with the gradual recovery in the residential sector.
Speaker #1: Our operations in South Central America and the Caribbean delivered full year EBITDA growth in 2025 for the third consecutive year , driven by pricing discipline and continued project cutting edge .
In the Middle East and Africa cement Ready, Mixed volumes in fourth quarter, expanded by 11 and 9% respectively, construction activity of across. These markets is recovering on the back of Housing and non-residential projects with Egypt. Also benefiting from large-scale infrastructure projects and the start of Mega tourism development.
[Company Representative] (CEMEX): Our operations in Europe remain at the forefront of our decarbonization efforts, reaching a level of 507 kilograms of CO2 gross emissions on a per ton of cement equivalent basis in 2025, representing a 19% reduction versus 2020. This level is already surpassing Cement Europe Association's 2030 emissions target for cement production, further reinforcing our position as an industry leader. The implementation of the Carbon Border Adjustment Mechanism in continental Europe, along with the gradual phase-out of free EU ETS allowances this year, should be supportive of cement pricing in 2026 and beyond. Our operations in South Central America and the Caribbean delivered full-year EBITDA growth in 2025 for the third consecutive year, driven by pricing discipline and continued benefits from Project Cutting Edge.
Lucy Rodriguez: Our operations in Europe remain at the forefront of our decarbonization efforts, reaching a level of 507 kilograms of CO2 gross emissions on a per ton of cement equivalent basis in 2025, representing a 19% reduction versus 2020. This level is already surpassing Cement Europe Association's 2030 emissions target for cement production, further reinforcing our position as an industry leader. The implementation of the Carbon Border Adjustment Mechanism in continental Europe, along with the gradual phase-out of free EU ETS allowances this year, should be supportive of cement pricing in 2026 and beyond. Our operations in South Central America and the Caribbean delivered full-year EBITDA growth in 2025 for the third consecutive year, driven by pricing discipline and continued benefits from Project Cutting Edge.
Speaker #1: Fourth quarter EBITDA performance reflects the impact of Hurricane Melissa in Jamaica , as well as increased maintenance in Colombia and Trinidad and Tobago .
Our operations in Europe remain at the forefront of our decarbonization efforts, reaching a level of 507 kilograms of CO2 gross emissions on a per ton of cement equivalent basis in 2025.
Speaker #1: Colombia , cement volumes continued to recover , In growing 7% in the quarter , driven by the informal sector , with cement benefiting from stabilizing macroeconomic conditions .
Representing a 19% reduction versus 2020.
Speaker #1: Jamaica posted record full year EBITDA with cement volumes growing by 7% , driven by tourism and Self-construction . The completion of our kiln debottlenecking in third quarter 2025 should allow us to profitably substitute imports with local production to meet rising domestic demand and better serve export markets .
This level is already surpassing Cement Europe Association's 2030 emissions target for cement production, further reinforcing our position as an industry leader.
The implementation of the Carbon Border Adjustment Mechanism in continental Europe, along with the gradual phase-out of free EU ETS allowances this year, should be supportive of cement pricing in 2026 and beyond.
Speaker #1: Sequential pricing for cement and ready mix in the region is relatively stable , with variation explained by geographic mix . We remain optimistic about the medium term outlook for region the where improved consumer and formal sentiment construction are expected to demand , drive and now I will pass the call to her to review our financial developments .
[Company Representative] (CEMEX): Fourth quarter EBITDA performance reflects the impact of Hurricane Melissa in Jamaica, as well as increased maintenance in Colombia and Trinidad and Tobago. In Colombia, cement volumes continued to recover, growing 7% in the quarter, driven by the informal sector, with bag cement benefiting from stabilizing macroeconomic conditions. Jamaica posted record full-year EBITDA, with cement volumes growing by 7%, driven by tourism and self-construction. The completion of our kiln debottlenecking in Q3 2025 should allow us to profitably substitute imports with local production to meet rising domestic demand and better serve export markets. Sequential pricing for cement and ready-mix in the region is relatively stable, with variation explained by geographic mix. We remain optimistic about the medium-term outlook for the region, where improved consumer sentiment and formal construction are expected to drive demand.
Lucy Rodriguez: Fourth quarter EBITDA performance reflects the impact of Hurricane Melissa in Jamaica, as well as increased maintenance in Colombia and Trinidad and Tobago. In Colombia, cement volumes continued to recover, growing 7% in the quarter, driven by the informal sector, with bag cement benefiting from stabilizing macroeconomic conditions. Jamaica posted record full-year EBITDA, with cement volumes growing by 7%, driven by tourism and self-construction. The completion of our kiln debottlenecking in Q3 2025 should allow us to profitably substitute imports with local production to meet rising domestic demand and better serve export markets. Sequential pricing for cement and ready-mix in the region is relatively stable, with variation explained by geographic mix. We remain optimistic about the medium-term outlook for the region, where improved consumer sentiment and formal construction are expected to drive demand.
Our operations in South Central America and the Caribbean delivered full year ebit, dog growth in 2025 for the third consecutive year driven by pricing discipline and continued benefits from Project Cutting Edge.
Fourth quarter, you've adopt performance, reflects the impact of hurricane Melissa in Jamaica as well as increased maintenance in Colombia and Trinidad and Tobago.
Speaker #2: Thank you , Lucy , and good day to everyone . We are pleased with our performance in 2025 , with our project Cutting Edge Program , delivering important cost savings primarily in the second half of the year , boosting our EBITDA growth is outlined .
Mint volumes continued to recover, growing 7% in the quarter, driven by the informal sector, with bag cement benefiting from stabilizing macroeconomic conditions.
Jamaica posted record full-year EBITDA, with cement volumes growing by 7%, driven by tourism and self-construction.
Speaker #2: Our full year free cash flow from operations was $1.2 billion , an increase of 15% versus 2024 on a reported basis . This growth is explained by an important reduction in taxes , interest expense and maintenance .
the completion of our Kiln debottlenecking in third quarter,
2025 should allow us to profitably, substitute Imports with local production to meet Rising, domestic demand and better, serve export markets.
Speaker #2: CapEx . Adjusting for the extraordinary payment of a fine in Spain in 2024 , cash tax declined by $170 million in 2025 . Our interest expense in 2025 , our including coupons on subordinated perpetual notes was , than last $160 million lower year .
Sequential pricing for cement and ready. Mix in the region is relatively stable with variation explained by Geographic mix.
[Company Representative] (CEMEX): Now, I will pass the call to Maher Al-Haffar to review our financial development.
Lucy Rodriguez: Now, I will pass the call to Maher Al-Haffar to review our financial development.
We remain optimistic about the medium-term outlook for the region, where improved consumer sentiment and formal construction are expected to drive demand. And now, I will pass the call to my colleague to review our financial development.
Maher Al-Haffar: Thank you, Lucy, and good day to everyone. We are pleased with our performance in 2025, with our Project Cutting Edge program delivering important cost savings, primarily in the second half of the year, boosting our EBITDA growth, as Jaime outlined. Our full-year free cash flow from operations was $1.2 billion, an increase of 15% versus 2024 on a reported basis. This growth is explained by an important reduction in taxes, interest expense, and maintenance CapEx. Adjusting for the extraordinary payment of a fine in Spain in 2024, cash taxes declined by $170 million in 2025. Our interest expense in 2025, including coupons on our subordinated perpetual notes, was $160 million lower than last year.
Maher Al-Haffar: Thank you, Lucy, and good day to everyone. We are pleased with our performance in 2025, with our Project Cutting Edge program delivering important cost savings, primarily in the second half of the year, boosting our EBITDA growth, as Jaime outlined. Our full-year free cash flow from operations was $1.2 billion, an increase of 15% versus 2024 on a reported basis. This growth is explained by an important reduction in taxes, interest expense, and maintenance CapEx. Adjusting for the extraordinary payment of a fine in Spain in 2024, cash taxes declined by $170 million in 2025. Our interest expense in 2025, including coupons on our subordinated perpetual notes, was $160 million lower than last year.
Speaker #2: improvement This was driven by lower average debt , lower base rates and the refinancing of one of our subordinated notes line with in our normal seasonality .
Thank you, Lucy and good day to everyone.
Speaker #2: We saw a divestment of $529 million from working capital during the quarter , resulting in a marginal $16 million investment for the full year .
We are pleased with our performance in 2025 with our project Cutting Edge program, delivering important cost savings primarily in the second half of the Year. Boosting our ibida growth as High may outlines.
Our full-year free cash flow from operations was $1.2 billion.
Speaker #2: Working capital days for 2025 stood at -11 days and improvement of four days versus 2024 . Excluding severance payments and discontinued operations . Our free cash flow in 2025 reached $1.4 billion , with a conversion rate of 46% .
An increase of 15% versus 2024 on a reported basis.
This growth is explained by an important reduction in taxes, interest expense, and maintenance capex.
Adjusting for the extraordinary, payment of a fine in Spain, in 2024 cash taxes declined by 170 million in 2025.
Speaker #2: Highlighting free cash our flow generation potential . Going forward . The initial benefits from our under optimize efforts to our Project cost base cutting Edge are visible in our results , and we expect incremental benefits in 2026 and beyond .
Our interest expense is in 2025, including coupons on our subordinated. Perpetual notes was $160 million lower than last year.
Maher Al-Haffar: This improvement was driven by lower average debt, lower base rates, and the refinancing of one of our subordinated notes. In line with our normal seasonality, we saw a divestment of $529 million from working capital during the quarter, resulting in a marginal $16 million investment for the full year. Working capital days for 2025 stood at -11 days, an improvement of 4 days versus 2024. Excluding severance payments and discontinued operations, our free cash flow in 2025 reached $1.4 billion, with a conversion rate of 46%, highlighting our free cash flow generation potential going forward. The initial benefits from our efforts to optimize our cost base under Project Cutting Edge are visible in our results, and we expect incremental benefits in 2026 and beyond.
Maher Al-Haffar: This improvement was driven by lower average debt, lower base rates, and the refinancing of one of our subordinated notes. In line with our normal seasonality, we saw a divestment of $529 million from working capital during the quarter, resulting in a marginal $16 million investment for the full year. Working capital days for 2025 stood at -11 days, an improvement of 4 days versus 2024. Excluding severance payments and discontinued operations, our free cash flow in 2025 reached $1.4 billion, with a conversion rate of 46%, highlighting our free cash flow generation potential going forward. The initial benefits from our efforts to optimize our cost base under Project Cutting Edge are visible in our results, and we expect incremental benefits in 2026 and beyond.
This improvement was driven by lower average debt.
Lower base rates.
Speaker #2: Energy costs on a per tonne of cement basis declined by 12% for the full year , driven by lower fuel and power prices , and it continued improvement in clinker factor and thermal efficiency .
In line, with our normal seasonality, we saw a divestment of 529 million for a working capital during the quarter.
Speaker #2: The fourth quarter . Cost of goods sold as a percentage of sales were 44 basis points lower year over year , while operating as a expenses percentage of sales were 62 basis points lower .
Resulting in a marginal, $60 million investment for the full year.
Working capital days for 2025 stood. At -11 days and Improvement of 4 days versus 2024.
Speaker #2: Despite recognizing a one off threw up related to provision variable compensation . Net income variation in the quarter is mainly explained by goodwill impairment and an asset write down amounting to $493 million for the full year .
Exporting Severance payments and discontinued operations. Our free cash flow in 2025 reached 1.4 billion dollars with a conversion rate of 46%.
Speaker #2: Net income increased by 2% as the gain from the sale of our in the operations Dominican Republic , a favorable effects , effect and lower financial expense offset the impact of higher income tax and impairments .
Maher Al-Haffar: Energy costs on a per ton of cement basis declined by 12% for the full year, driven by lower fuel and power prices, and a continued improvement in clinker factor and thermal efficiency. In the fourth quarter, cost of goods sold as a percentage of sales were 44 basis points lower year-over-year, while operating expenses as a percentage of sales were 62 basis points lower, despite recognizing a one-off true-up provision related to variable compensation. Net income variation in the quarter is mainly explained by goodwill impairment and an asset write-down amounting to $493 million. For the full year, net income increased by 2% as the gain from the sale of our operations in the Dominican Republic, a favorable effect, and lower financial expense offset the impact of higher income tax and impairments.
Maher Al-Haffar: Energy costs on a per ton of cement basis declined by 12% for the full year, driven by lower fuel and power prices, and a continued improvement in clinker factor and thermal efficiency. In the fourth quarter, cost of goods sold as a percentage of sales were 44 basis points lower year-over-year, while operating expenses as a percentage of sales were 62 basis points lower, despite recognizing a one-off true-up provision related to variable compensation. Net income variation in the quarter is mainly explained by goodwill impairment and an asset write-down amounting to $493 million. For the full year, net income increased by 2% as the gain from the sale of our operations in the Dominican Republic, a favorable effect, and lower financial expense offset the impact of higher income tax and impairments.
The initial benefits from our efforts to optimize our cost base under project. Cutting Edge are visible in our results and we expect incremental benefits in 2026 and Beyond.
Speaker #2: As I have mentioned in prior occasions , our steady state net total financial leverage target is between one and a half to two times .
Energy costs on a per ton of cement basis declined by 12% for the full year.
Driven by lower Fuel and power prices.
And a continued Improvement in clinker factor and thermal efficiency.
Speaker #2: This ratio includes our net debt plus subordinated notes perpetual $2 billion of at the end of 2025 . This ratio stood at 2.26 times .
Speaker #2: We aim to reach and maintain a solid Triple-b rating to further improve our risk profile , bolster our growth potential and maximize value creation for our shareholders .
In the fourth quarter cost of goods, sold as a percentage of sales were 44 basis points lower year-over-year. While operating expenses as a percentage of sales were 62 basis points, lower,
Despite recognizing a 1-off true-up provision related to variable compensation?
Speaker #2: With a significantly improved leverage position , a high level of confidence in our transformation plan and our new , more balanced and disciplined capital allocation framework .
Net income variation in the quarter is mainly explained by goodwill impairment and an asset write-down amounting to $493 million.
Speaker #2: Prioritizing shareholders . We believe 2026 is the moment to begin to move on shareholder return . In this context , the board of directors will be proposing to our general shareholders meeting scheduled for late March .
For the full year. Net income increased by 2% as the gain from the sale of our operations. In the Dominican Republic, a favorable effects effect and lower Financial expense offset, the impact of higher income tax and impairments.
Maher Al-Haffar: As I have mentioned in prior occasions, our steady-state net total financial leverage target is between 1.5 and 2 times. This ratio includes our net debt plus $2 billion of subordinated perpetual notes. At the end of 2025, this ratio stood at 2.26 times. We aim to reach and maintain a solid BBB rating to further improve our risk profile, bolster our growth potential, and maximize value creation for our shareholders. With a significantly improved leverage position, a high level of confidence in our transformation plan, and our new, more balanced and disciplined capital allocation framework prioritizing shareholders, we believe 2026 is the moment to begin to move on shareholder return.
Maher Al-Haffar: As I have mentioned in prior occasions, our steady-state net total financial leverage target is between 1.5 and 2 times. This ratio includes our net debt plus $2 billion of subordinated perpetual notes. At the end of 2025, this ratio stood at 2.26 times. We aim to reach and maintain a solid BBB rating to further improve our risk profile, bolster our growth potential, and maximize value creation for our shareholders. With a significantly improved leverage position, a high level of confidence in our transformation plan, and our new, more balanced and disciplined capital allocation framework prioritizing shareholders, we believe 2026 is the moment to begin to move on shareholder return.
Speaker #2: An annual cash dividend of $180 million , subject to shareholder approval . This would represent an almost 40% increase in our dividends versus the prior year , and represent an important advance in our progressive dividend program .
As I have mentioned in Prior occasions, our steady state, net total, financial leverage Target is between 1 and a half to 2 times.
this ratio includes our net debt plus 2 billion dollars of subordinated, Perpetual notes
Speaker #2: The notice and agenda for the General Shareholders meeting , including information on the dividend proposal , will be published tomorrow . Complementing our cash and subject to annual approval by our shareholders and other formalities .
At the end of 2025, this ratio stood at 2.26 times.
We aim to reach and maintain a solid Triple B rating, further improve our risk profile, bolster our growth potential, and maximize value creation for our shareholders.
Speaker #2: We will activate usage of our buyback program with the intent to buyback up to $500 million in shares over the next three years .
Speaker #2: Importantly , as approved in last year's general shareholders meeting , we still have an outstanding approval for share buybacks of up to available through to us 500 million late March of this year .
With a significantly improved leveraged position, a high level of confidence in our transformation plan and our new more balanced and disciplined Capital, allocation framework prioritizing shareholders. We Believe 2026 is the moment to begin to move on shareholder returns
Maher Al-Haffar: In this context, the board of directors will be proposing to our general shareholders meeting, scheduled for late March, an annual cash dividend of $180 million. Subject to shareholder approval, this would represent an almost 40% increase in our dividends versus the prior year, and represent an important advance in our progressive dividend program. The notice and agenda for the general shareholders meeting, including information on the dividend proposal, will be published tomorrow. Complementing our cash dividend, and subject to annual approval by our shareholders and other formalities, we will activate usage of our buyback program with the intent to buy back up to $500 million in shares over the next 3 years.
Maher Al-Haffar: In this context, the board of directors will be proposing to our general shareholders meeting, scheduled for late March, an annual cash dividend of $180 million. Subject to shareholder approval, this would represent an almost 40% increase in our dividends versus the prior year, and represent an important advance in our progressive dividend program. The notice and agenda for the general shareholders meeting, including information on the dividend proposal, will be published tomorrow. Complementing our cash dividend, and subject to annual approval by our shareholders and other formalities, we will activate usage of our buyback program with the intent to buy back up to $500 million in shares over the next 3 years.
Speaker #2: Execution will depend on business performance and free cash flow generation , cash needs and overall market conditions . You should expect gradual improvement in shareholder return as free cash flow continues to grow in years subsequent .
The Board of Directors will be proposing to our General Shareholders Meeting, scheduled for late March, an annual cash dividend of $180 million.
Speaker #2: And now back to you , Jaime .
Speaker #3: Thank you . Maher . While we are pleased with our results and achievements in 2025 , there is still much more work to be done as part of our transformation for 2026 , we anticipate a more favorable demand environment as construction activity continues to recover in most of our markets .
Subject to shareholder approval, this would represent an almost 40% increase in our dividends versus the prior year and represent an important advance in our progressive dividend program.
The notice and agenda, for the general shareholders meeting, including information on the dividend proposal will be published tomorrow.
Speaker #3: In particular , we expect material contributions from Mexico and EMEA . We also expect a tailwind of $165 million in incremental savings under project cutting Edge , including related to overhead $125 million actions already taken in 2025 .
Complementing, our cash dividend and subject to annual approval by our shareholders. And other formalities. We will activate usage of our buyback program with the intent to buy back up to 500 million in shares over the next 3 years.
Maher Al-Haffar: Importantly, as approved in last year's general shareholders meeting, we still have an outstanding approval for share buybacks of up to $500 million available to us through late March of this year. Execution will depend on business performance and free cash flow generation, cash needs, and overall market conditions. You should expect gradual improvement in shareholder return as free cash flow continues to grow in subsequent years. And now back to you, Jaime.
Maher Al-Haffar: Importantly, as approved in last year's general shareholders meeting, we still have an outstanding approval for share buybacks of up to $500 million available to us through late March of this year. Execution will depend on business performance and free cash flow generation, cash needs, and overall market conditions. You should expect gradual improvement in shareholder return as free cash flow continues to grow in subsequent years. And now back to you, Jaime.
Importantly.
As approved in last year's General Shareholders Meeting, we still have an outstanding approval for share buybacks of up to $500 million available to us through late March of this year.
Speaker #3: Finally , completed projects in our growth portfolio should generate $80 million in incremental EBITDA . This year , half of which relies on volume recovery .
Execution will depend on business performance and free cash flow, generation cash needs and overall market conditions.
Jaime Muguiro: Thank you, Maher. While we are pleased with our results and achievements in 2025, there is still much more work to be done as part of our transformation. For 2026, we anticipate a more favorable demand environment as construction activity continues to recover in most of our markets. In particular, we expect material contributions from Mexico and EMEIA. We also expect a tailwind of $165 million in incremental savings under Project Cutting Edge, including $125 million related to overhead actions already taken in 2025. Finally, completed projects in our growth portfolio should generate $80 million in incremental EBITDA this year, half of which relies on volume recovery. Based on this, we're guiding to a high single-digit rate growth in EBITDA in 2026.
Jaime Muguiro: Thank you, Maher. While we are pleased with our results and achievements in 2025, there is still much more work to be done as part of our transformation. For 2026, we anticipate a more favorable demand environment as construction activity continues to recover in most of our markets. In particular, we expect material contributions from Mexico and EMEIA. We also expect a tailwind of $165 million in incremental savings under Project Cutting Edge, including $125 million related to overhead actions already taken in 2025. Finally, completed projects in our growth portfolio should generate $80 million in incremental EBITDA this year, half of which relies on volume recovery. Based on this, we're guiding to a high single-digit rate growth in EBITDA in 2026.
You should expect gradual Improvement in shareholder return as free. Cash flow continues to grow in subsequent years and now back to you Hyman
Thank you, Maher.
Speaker #3: Based on this , we're guiding to a high single digit rate growth in EBITDA in 2026 due to the relevant exposure to Mexico in our EBITDA .
While we are pleased with our results and achievements. In 2025, there is still much more work to be done as part of our transformation.
Speaker #3: guidance Our is subject to FX fluctuations in the past , we assumed a current FX rate for the peso in our guidance . However , with the recent appreciation in peso , we opted to use an FX estimate of range a of between 18.25 to $18.5 per dollar .
In particular, we expect material contributions from Mexico and the U.S.
Speaker #3: Beginning this year . We are providing guidance for investments in assets intangible flat Our guidance reflects the purchase of additional aggregate reserves and mining rights in 2026 , all in maintenance , CapEx and growth investments , including CapEx and intangible assets , are anticipated to result in a positive contribution to free cash flow of about $195 million in 2026 versus the prior year We .
Finally.
Completed projects in our growth portfolio, should generate 80 million dollars. In incremental, EV this year, half of which relies on volume recovery
Based on these were guiding to a high single-digit rate growth in ibida in 2026.
Jaime Muguiro: Due to the relevant exposure to Mexico in our EBITDA, our guidance is subject to FX fluctuations. In the past, we assumed a current FX rate for the peso in our guidance. However, with the recent appreciation in the peso, we opted to use an FX estimate of a range of between 18.25 to 18.50 pesos per dollar. Beginning this year, we are providing guidance for investments in intangible assets. Our flat guidance reflects the purchase of additional aggregate reserves and mining rights in 2026. All in, maintenance CapEx and growth investments, including growth CapEx and intangible assets, are anticipated to result in a positive contribution to free cash flow of about $195 million in 2026 versus the prior year.
Jaime Muguiro: Due to the relevant exposure to Mexico in our EBITDA, our guidance is subject to FX fluctuations. In the past, we assumed a current FX rate for the peso in our guidance. However, with the recent appreciation in the peso, we opted to use an FX estimate of a range of between 18.25 to 18.50 pesos per dollar. Beginning this year, we are providing guidance for investments in intangible assets. Our flat guidance reflects the purchase of additional aggregate reserves and mining rights in 2026. All in, maintenance CapEx and growth investments, including growth CapEx and intangible assets, are anticipated to result in a positive contribution to free cash flow of about $195 million in 2026 versus the prior year.
Due to the relevant, exposure to Mexico in our ebida. Our guidance is subject to FX. Look to agents
Speaker #3: these savings , coupled with high single digit EBITDA growth and a favorable comparison to $183 million in severance payments in 2025 , should lead to incremental free cash flow and enhanced conversion rate , making progress towards our 50% target .
In the past, we assumed a current FX rate for the peso in our guidance.
However, with the recent appreciation in the peso, we opted to use an FX estimate of a range between
18.25 to 18.50 pesos per dollar.
Speaker #3: Let me emphasize that I remain laser focused on operational excellence and shareholder will return , continue and working relentlessly on improving the variables we can control .
Beginning this year, we are providing guidance for investments in intangible assets.
Our flat guidance, reflects the purchase of additional Aggregates reserves and Mining rights in 2026.
All In.
Speaker #3: We had the right strategy and more importantly , the right team to continue delivering on our key priorities . And while we expect a better operating environment in 2026 , much of our projected growth is still driven by self-help measures .
Jaime Muguiro: We expect these savings, coupled with high single-digit EBITDA growth and a favorable comparison to $183 million in severance payments in 2025, should lead to incremental free cash flow and enhanced conversion rate, making progress towards our 50% target. Let me emphasize that I remain laser-focused on operational excellence and shareholder return, and will continue working relentlessly on improving the variables we can control. We have the right strategy, and more importantly, the right team to continue delivering on our key priorities. While we expect a better operating environment in 2026, much of our projected growth is still driven by self-help measures. Now, back to you, Lucy.
Jaime Muguiro: We expect these savings, coupled with high single-digit EBITDA growth and a favorable comparison to $183 million in severance payments in 2025, should lead to incremental free cash flow and enhanced conversion rate, making progress towards our 50% target. Let me emphasize that I remain laser-focused on operational excellence and shareholder return, and will continue working relentlessly on improving the variables we can control. We have the right strategy, and more importantly, the right team to continue delivering on our key priorities. While we expect a better operating environment in 2026, much of our projected growth is still driven by self-help measures. Now, back to you, Lucy.
Maintenance capex and growth Investments, including growth capex, and intangible assets are anticipated to result in a positive contribution to free cash flow of about 195 million dollars in 2026 versus the prior year.
Speaker #3: And now , back to you , Lucy .
Speaker #1: Before we go into our Q&A session , I would like to remind you that any forward looking statements we make today are based on our current knowledge of the markets in which we operate and could change in the future due to a variety of factors .
Speaker #1: In unless the addition , context indicates otherwise , all references to pricing initiatives , price increases or decreases refer to our prices for our products .
We expect these savings coupled with high single digit, EV that growth and a favorable comparison to 183 million dollars. In Severance payments in 2025, should lead to incremental free cash flow and enhanced conversion rate making progress towards our 50% Target.
Speaker #1: we will now And be happy to take your in the questions interest of time , and to other people an give opportunity to participate , we kindly ask that you limit yourself to one question .
let me emphasize that I remain laser focused on operational, excellence and shareholder return and will continue working relentlessly on improving the variables, we can control
Speaker #1: If you wish to ask a question , please press star followed by one on your touchtone telephone . If your question has already been answered or you wish to withdraw your question , press Star followed by two press star one to begin .
We have the right strategy and more importantly, the right team to continue delivering on our key priorities.
And while we respect a better operating environment in 2026, much of our projected growth is still driven by self-help measures.
And now, back to you, Lucy.
Maher Al-Haffar: Before we go into our Q&A session, I would like to remind you that any forward-looking statements we make today are based on our current knowledge of the markets in which we operate, and could change in the future due to a variety of factors. In addition, unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to our prices for our products. Now, we will be happy to take your questions. In the interest of time, and to give other people an opportunity to participate, we kindly ask that you limit yourself to one question. If you wish to ask a question, please press star followed by one on your touchtone telephone. If your question has already been answered or you wish to withdraw your question, press star followed by two. Press star one to begin.
Lucy Rodriguez: Before we go into our Q&A session, I would like to remind you that any forward-looking statements we make today are based on our current knowledge of the markets in which we operate, and could change in the future due to a variety of factors. In addition, unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to our prices for our products. Now, we will be happy to take your questions. In the interest of time, and to give other people an opportunity to participate, we kindly ask that you limit yourself to one question. If you wish to ask a question, please press star followed by one on your touchtone telephone. If your question has already been answered or you wish to withdraw your question, press star followed by two. Press star one to begin.
Speaker #1: The first question comes from Gordon Lee from BTG Pactual . Gordon .
Speaker #4: Hi , Lucy . Hi . morning . Good Thank you very much for the call . Just a quick question , Simon . And sort of mentioned this as an important driver in Europe and passing in your in your prepared remarks .
Speaker #4: But I was wondering if you if you could comment , you could share with us your view of some of the reports that we've seen from Europe suggesting EU that the will actually weaken or targets ETS for this year .
Products.
Speaker #4: And going forward , that's obviously had an impact on on the sector stock prices globally . But I was wondering what your view is of those reports and how do you think if this were to happen , it would impact your outlook for prices and in Europe ?
And now we will be happy to take your questions in the interest of time and to give other people an opportunity to participate. We kindly ask that you limit yourself to 1 question.
Speaker #4: For profitability Cemex ? Thank you Gordon .
If you wish to ask a question, please press star, followed by 1 on your touchtone telephone. If your question has already been answered, or you wish to withdraw your question, press star followed by 2.
Speaker #3: Good morning . Thanks for the question . Although , as you know very well that change potentially change was not confirmed . The likelihood of it happening right is reasonable .
Press star 1 to begin.
Maher Al-Haffar: The first question comes from Gordon Lee from BTG Pactual. Gordon?
Lucy Rodriguez: The first question comes from Gordon Lee from BTG Pactual. Gordon?
Gordon Lee: Hi, Lucy. Hi, good morning. Thank you very much for the call. Just a quick question, Jaime, and you sort of mentioned this as an important driver in Europe in passing in your prepared remarks. But I was wondering if you could comment, you could share with us your view of some of the reports that we've seen from Europe, suggesting that the EU will actually weaken or soften its ETS targets for this year and going forward. That's obviously had an impact on the sector stock prices globally. But I was wondering what your view is of those reports, and how do you think if this were to happen, it would impact your outlook for prices and profitability in Europe for CEMEX? Thank you.
Gordon Lee: Hi, Lucy. Hi, good morning. Thank you very much for the call. Just a quick question, Jaime, and you sort of mentioned this as an important driver in Europe in passing in your prepared remarks. But I was wondering if you could comment, you could share with us your view of some of the reports that we've seen from Europe, suggesting that the EU will actually weaken or soften its ETS targets for this year and going forward. That's obviously had an impact on the sector stock prices globally. But I was wondering what your view is of those reports, and how do you think if this were to happen, it would impact your outlook for prices and profitability in Europe for CEMEX? Thank you.
Speaker #3: But if but if it and when it happens it's not going to change our pricing strategy in Europe in the very short term .
Speaker #3: We are confident that on our mid-single digit , a price increases targets for 26 , 27 , 28 . If that regulation to comes place , it will flatten out the price increase curve , but it will not negate the need for industry single digit to high single digit price increases over time .
Hi Lucy. Hi, good morning. Uh thank you very much for the call. Uh just a quick question, came in and and you sort of mentioned this um as an important driver in Europe and passing in your in your prepared remarks. But I was wondering if you, if you could comment, you could share with us your view of some of the reports that we've seen from Europe. Suggesting that the EU will actually weaken or soften the CTS targets for this year. Um, and going forward, that's obviously had an impact on
On the sector stock prices globally. Uh, but I was wondering what your view is of those reports. And how do you think? If, if this were to happen, it would impact your outlook for prices, and profitability in Europe for semx. Thank you.
Jaime Muguiro: Gordon, good morning. Thanks for the question. Although, as you know very well, that potential change was not confirmed, the likelihood of it happening, right, is reasonable. But if it happens, and when it happens, it's not going to change our pricing strategy in Europe. In the very short term, we are confident that, on our mid-single digit price increases targets for 2026, 2027, 2028. If that regulation comes to place, it will flatten out the price increase curve, but it will not negate the need for industry, mid-single digit to high single digit price increases over time. And, you know, at worst, it might just reduce by 1 percentage point the need for price increases in the long term on a compound annual growth rate basis.
Jaime Muguiro: Gordon, good morning. Thanks for the question. Although, as you know very well, that potential change was not confirmed, the likelihood of it happening, right, is reasonable. But if it happens, and when it happens, it's not going to change our pricing strategy in Europe. In the very short term, we are confident that, on our mid-single digit price increases targets for 2026, 2027, 2028. If that regulation comes to place, it will flatten out the price increase curve, but it will not negate the need for industry, mid-single digit to high single digit price increases over time. And, you know, at worst, it might just reduce by 1 percentage point the need for price increases in the long term on a compound annual growth rate basis.
Speaker #3: On , you know , at worst it might it might just reduce by one percentage point the need of price increases in the long term are a compounded annual growth rate basis .
Gordon. Good morning, thanks for the question. Um, although as you know very well that that change potentially change was not confirmed,
Speaker #3: So I don't think it will be too material . At all . The other thing that I see very positive , Gordon , is that it it it gives us time to continue our profitable decarbonization in Europe .
The likelihood of it happening, right? It is reasonable but if but if it happens and when it happens, is not going to change our pricing strategy in Europe,
Speaker #3: We will continue using our traditional levers , particularly reducing clinker factor as fast as they can because we will continue reducing our TMX carbon cost curve .
In the very short term. Um, we are confident that um, on our mid single digit, the price increases targets for 26, 27, 28,
Speaker #3: gap the Widening between importers . Some Europeans and employers , and us . And that will give us a competitive advantage . And by doing that , you know , we might even positively influenced the next benchmark in the next phase , which will widen the gap between our CO2 footprint and our cost curve and that of importers .
Um, if that regulation comes to place, um it will flatten out the price increase curve but it will not negate. The need for industry, uh mid single digit to high single digit, price increases over time,
Jaime Muguiro: So it's I don't think it will be too material at all. The other thing that I see very positive, Gordon, is that it gives us time to continue our profitable decarbonization in Europe. We will continue using our traditional levers, particularly reducing clinker factor, as fast as they can, because we will continue with using our CEMEX carbon cost curve, widening the gap between importers, some European cement players, and us. And that will give us a competitive advantage, and by doing that, you know, we might even positively influence the next benchmark in the next phase, which will widen the gap between our CO2 footprint and our cost curve and that of importers. And that's good. So and the final point is free cash flow.
Jaime Muguiro: So it's I don't think it will be too material at all. The other thing that I see very positive, Gordon, is that it gives us time to continue our profitable decarbonization in Europe. We will continue using our traditional levers, particularly reducing clinker factor, as fast as they can, because we will continue with using our CEMEX carbon cost curve, widening the gap between importers, some European cement players, and us. And that will give us a competitive advantage, and by doing that, you know, we might even positively influence the next benchmark in the next phase, which will widen the gap between our CO2 footprint and our cost curve and that of importers. And that's good. So and the final point is free cash flow.
Um, and you know, at worst, it might just reduce by 1 percentage point the need for price increases in the long term at a company, on a nano growth rate basis.
Speaker #3: And that's good . So and the final point is free cash flow . Right by postponing the target for five years , that is what is it .
so is I don't think it will be too material at all the other thing that I see very positive in Gorton is that
it it
Speaker #3: End up happening . We're going to preserve more cash . And we will have more visibility on future CO2 prices , which will de-risk capital allocation for more demanding right .
It gives us time to continue our profitable decarbonization in Europe.
Uh, we will continue using our traditional levers, particularly reducing clinker factor.
Speaker #3: Decarbonization levers . So I hope that I have answered the question . Gordon .
Uh, as fast as they can, because we will continue with using our FEX.
Speaker #4: very clear . Yes , that's Thank you very much .
Speaker #3: Thank you .
Speaker #1: And the next . Sorry . Thanks . And the next question comes from Adrian Huerta from J.P. . Adrian . Adrian , are you there ?
Carbon cost. Curve widening, the gap between importers some Europeans and employers on us, and that will give us a competitive advantage. And by doing that, you know, we might even positively influenced the next Benchmark in the next space, which will widen the gap between our CO2 footprint, and our cost curve. And that of importers
Jaime Muguiro: Right by postponing the target for 4, 5 years, that is what, what these... It ends up happening. We're gonna preserve more cash, and we will have more visibility on future CO2 prices, which will de-risk capital allocation for more demanding, right, decarbonization levers. So I hope that I have answered the question, Gordon.
Jaime Muguiro: Right by postponing the target for 4, 5 years, that is what, what these... It ends up happening. We're gonna preserve more cash, and we will have more visibility on future CO2 prices, which will de-risk capital allocation for more demanding, right, decarbonization levers. So I hope that I have answered the question, Gordon.
Speaker #1: Okay . So why don't we go on to the next . Question then . And the next question comes from Ben Theurer from Barclays .
Speaker #1: Ben .
Speaker #5: Thank you very much . Thanks . Hey , Good Lucy . morning . Jaime . Maher as well let's let's 2025 . And .
Speaker #5: Thank you very much . Thanks . Hey , Good Lucy . morning . Jaime . Maher as well let's let's 2025 . And . to on good Congrats good 2026 .
Um, and that's good. So and the final point is, uh, free cash flow right by postponing the target for 4 5 years that is what what these it ends up happening. We're going to preserve more cash and we will have more visibility on future CO2 prices, which will be risk Capital allocation for more demanding, right? Um, decarbonization levels.
So I hope that I have answered the question Gordon.
Gordon Lee: Yes, that's so clear. Thank you very much.
Gordon Lee: Yes, that's so clear. Thank you very much.
Yes, that's very clear. Thank you very much.
Jaime Muguiro: Thank you.
Jaime Muguiro: Thank you.
[Company Representative] (CEMEX): Sorry, thanks. And the next question comes from Adrian Huerta, from JP Morgan. Adrian? Adrian, are you there? Okay, so why don't we go on to the next question then? And the next question comes from Benjamin Theurer, from Barclays. Ben?
Lucy Rodriguez: Sorry, thanks. And the next question comes from Adrian Huerta, from JP Morgan. Adrian? Adrian, are you there? Okay, so why don't we go on to the next question then? And the next question comes from Benjamin Theurer, from Barclays. Ben?
Speaker #5: A quick one on your guidance . So you kind of like assuming a low , low single digit volume growth . As you pointed out within your slide deck .
Thank you, and the next. Sorry. Thanks.
And the next question comes from Adrian Weta from J.P. Morgan. Adrian?
Speaker #5: And from a pricing , it like another low single digits . So it would take us to something like a mid-single digit growth sales .
Speaker #5: But obviously additional savings from Project Cutting Edge . You talked about the operating leverage that you get from the better volume . Just wanted to understand , and if you could elaborate more on the assumptions behind the just the high single digit EBITDA growth on a year over year basis and what are like kind of like the upside downside risks you're seeing within that framework .
Adrian, are you there?
Speaker #5: Thank you .
Speaker #3: Ben , thank you so much for the question . What I can tell you is that I see more upsides and downsides . The first one is effects , as you comments because of the heard our , we we decided to a use range of 18.25 to 1850 .
Um, okay, so why don't we go on to the next? Um, question then and the next question comes from, benur from Barclays.
Benjamin Theurer: Thank you very much. Thanks. Hey, Lucy. Good morning, Jaime, Maher as well. Congrats on a good 2025, and let's move on to another good 2026. Quick one on your guidance. So you kind of like assuming a low single digit volume growth, as you pointed out within your slide deck. And from a pricing, it feels like another low single digits that would take us to something like a mid-single digit sales growth. But obviously, additional savings from Project Cutting Edge. You talked about the operating leverage that you get from the better volume. Just wanted to understand, and if you could elaborate more on the assumptions behind the high single digit EBITDA growth on a year-over-year basis, and what are the upside/downside risks you're seeing within that framework.
Benjamin Theurer: Thank you very much. Thanks. Hey, Lucy. Good morning, Jaime, Maher as well. Congrats on a good 2025, and let's move on to another good 2026. Quick one on your guidance. So you kind of like assuming a low single digit volume growth, as you pointed out within your slide deck. And from a pricing, it feels like another low single digits that would take us to something like a mid-single digit sales growth. But obviously, additional savings from Project Cutting Edge. You talked about the operating leverage that you get from the better volume. Just wanted to understand, and if you could elaborate more on the assumptions behind the high single digit EBITDA growth on a year-over-year basis, and what are the upside/downside risks you're seeing within that framework.
Speaker #3: So if the effects stays stronger , please note that for every peso of appreciation right , we we can increase EBITDA by around 75 to $80 million .
Speaker #3: On the other aspect is that as part of our transformation and focus on operate in on operating excellence , we , in will continue to work on firming up new savings , recurring savings .
Benjamin Theurer: Thank you.
Benjamin Theurer: Thank you.
Ben, thank you very much. Thanks. Hey Lucy. Uh, good morning. Hi Maher as well. Uh congrats on a on a good 2025 and let's let's move on to another good 2026 um, quick 1 on your guidance. So you kind of like assuming a low low single digit volume growth, as you pointed out within your uh slide deck. Um and from a pricing it feels like another low single digit. So it would take us to something like a mid single digit sales growth, um but obviously additional savings from Project Cutting Edge. You talked about the operating leverage that you get from the beta volume just wanted to understand and if you could elaborate more on the assumptions behind the just the high single digit ibida uh growth on a year-over-year basis, and what I like kind of like the upside downside risks you're seeing within that framework, thank you.
Jaime Muguiro: Ben, thank you so much for the question. What I can tell you is that, I see more upsides than downsides. The first one is because of the effects. As you heard our comments, we decided to use a range of 18.25 to 18.50. So if the FX stays stronger, please note that for every peso of appreciation, we can increase EBITDA by around $75 to 80 million. And the other aspect is that as part of our transformation and focus on operate in, in, on operating excellence, we will continue to work on firming up new savings, recurring savings. So that give... I'm very confident about our guidance, and there could be some upside potential. So thanks for the question, Ben.
Jaime Muguiro: Ben, thank you so much for the question. What I can tell you is that, I see more upsides than downsides. The first one is because of the effects. As you heard our comments, we decided to use a range of 18.25 to 18.50. So if the FX stays stronger, please note that for every peso of appreciation, we can increase EBITDA by around $75 to 80 million. And the other aspect is that as part of our transformation and focus on operate in, in, on operating excellence, we will continue to work on firming up new savings, recurring savings. So that give... I'm very confident about our guidance, and there could be some upside potential. So thanks for the question, Ben.
Speaker #3: So that I'm very confident about our guidance . And there could be some upside potential . So thanks for the question , Ben .
Ben, thank you so much for the question. What I can tell you is that I see more upsides than downsides.
Speaker #5: Perfect . Thank you very much .
Um, the first one is because of the effects. Um, as you heard our comments,
Speaker #1: come going to back Okay , I'm to Adrian from see JPMorgan and if he is Adrian , can you hear us ? Okay .
Uh, we, we decided to use a range of 18.25 to 1,850.
So if the effects stay stronger,
Speaker #1: I'm going to move on then to the next question , which is via the webcast and is coming from our know from on field .
Um, please note that for every peso of appreciation, right? Um, we can increase EBITDA by around $75 to $80 million.
Speaker #1: What are the one offs mentioned for Europe in Q4 , and could you quantify them ?
Speaker #3: Yes . Arnold , how are you doing ? Good morning . Excluded the one offs . The margin would have been higher by 0.9 percentage points .
Um, on the other aspect is that as part of our transformation and focus on operate in, in on operating Excellence. Uh, we will continue to work on firming up, new savings, recurring savings. So that give I'm very confident about our guidance and there could be some upside potential.
Um,
Speaker #3: And the one offs were related to a few write offs . The fact that in for Q 24 , had we we were giving an electricity reimbursement and then we had a variation on the variable compensation provision at a consolidated level , but also affecting EMEA and Europe .
so thanks for the question, been
Francisco Suarez: Perfect. Thank you very much.
Benjamin Theurer: Perfect. Thank you very much.
Perfect, thank you very much.
[Company Representative] (CEMEX): Okay, I'm gonna come back to Adrian Huerta from JP Morgan and see if he is online. Adrian, can you hear us? Okay, I'm going to move on then to the next question, which is via the webcast and is coming from Arnaud Pinatel from Onfield. What are the one-offs mentioned for Europe in Q4, and could you quantify them?
Lucy Rodriguez: Okay, I'm gonna come back to Adrian Huerta from JP Morgan and see if he is online. Adrian, can you hear us? Okay, I'm going to move on then to the next question, which is via the webcast and is coming from Arnaud Pinatel from Onfield. What are the one-offs mentioned for Europe in Q4, and could you quantify them?
Okay, I'm gonna come back to adream wortha from JP Morgan and see if he is online. Adrian, can you hear us?
Okay.
Speaker #3: This means that while in 2024 we reduced variable compensation provisions in the fourth quarter , in 2025 , fourth quarter , we increased the provision and there was a delta , and that affected Europe .
Um I'm going to move on then to the next question, which is via the webcast and is coming from our no pinata from on field.
What are the 1 off mentioned for Europe in Q4, and could you quantify them?
Jaime Muguiro: Yes, Arnaud, how are you doing? Good morning. Had we excluded the one-offs, the EMEA margin would have been higher by 0.9 percentage points. And the one-offs were related to a few write-offs. The fact that in Q4 2024 we were giving an electricity reimbursement, and then we had a variation on the variable compensation provision at a consolidated level, but also affecting EMEA and Europe. This means that while in 2024 we reduced variable compensation provisions in the fourth quarter, in 2025 fourth quarter we increased the provision, and there was a delta, and that affected Europe, and it affected CEMEX fourth quarter margin at a consolidated level. And at a consolidated level, that effect was around 0.6 percentage points.
Jaime Muguiro: Yes, Arnaud, how are you doing? Good morning. Had we excluded the one-offs, the EMEA margin would have been higher by 0.9 percentage points. And the one-offs were related to a few write-offs. The fact that in Q4 2024 we were giving an electricity reimbursement, and then we had a variation on the variable compensation provision at a consolidated level, but also affecting EMEA and Europe. This means that while in 2024 we reduced variable compensation provisions in the fourth quarter, in 2025 fourth quarter we increased the provision, and there was a delta, and that affected Europe, and it affected CEMEX fourth quarter margin at a consolidated level. And at a consolidated level, that effect was around 0.6 percentage points.
Speaker #3: And it affected Thermax . Fourth quarter margin at a consolidated level . And consolidated level . That effect was around 0.6 percentage points .
Yes, Arnold, how are you doing? Good morning.
Um,
HUD we excluded um, the 1 of
The Maz margin would have been Higher by.
0.9 percentage points.
Speaker #1: Okay . Thank you very much , Jaime . And I think we are going to take Adrian Huertas question now by the webcast .
And, uh, the one ops were related to a few write-ups.
The fact that in 4q 24, we had, we were giving an electricity reimbursement.
Speaker #1: So the question is the following . Just about thinking potential sources for additional free cash flow going forward , coming from reduced expenses or CapEx .
and then, we had a
Uh, variation on the variable compensation provision.
Speaker #1: case of In the intangible investments , you are guiding to flat this year . But mentioned that some of this is due to mining rights .
Speaker #1: Will this type of investment on mining rights continue for a few years ? What other items within intangibles were reduced , other expenses that could be reduced going forward ?
Speaker #3: Adrian , thank you for the question . First , on intangibles , we have our present . It investments and then depending on how we we procure , acquire reserves .
Out of consolidated level but also affecting IMEA in Europe. This means that while in 2024, we reduced variable compensation provisions in the fourth quarter, in 2025 fourth quarter, we increased the provision, and there was a delta. That affected Europe, and it affected FEX, fourth quarter margin at a consolidated level, and at a consolidated level, that effect was around 0.6%.
Percentage points.
[Company Representative] (CEMEX): Okay. Thank you very much, Jaime. I think we are going to take Adrian Huerta's question now, by the webcast. So the question is the following: Just thinking about potential sources for additional free cash flow going forward, coming from reduced expenses or CapEx. In the case of intangible investments, you are guiding to spot this year, but mentioned that some of this is due to mining rights. Will this type of investment on mining rights continue for a few years? What other items within intangibles were reduced? Other expenses that could be reduced going forward.
Lucy Rodriguez: Okay. Thank you very much, Jaime. I think we are going to take Adrian Huerta's question now, by the webcast. So the question is the following: Just thinking about potential sources for additional free cash flow going forward, coming from reduced expenses or CapEx. In the case of intangible investments, you are guiding to spot this year, but mentioned that some of this is due to mining rights. Will this type of investment on mining rights continue for a few years? What other items within intangibles were reduced? Other expenses that could be reduced going forward.
Speaker #3: If those are mineral rights , there will be accounted under these intangibles . However , if acquiring we're purchasing reserves not rights , strategic it'll be CapEx .
Okay, thank you very much, Jaime, and I think we are going to take Adrianne Wertz's question now. Um, by the webcast.
Speaker #3: under a Please note that we will continue reducing both strategic CapEx and intangibles . That's our plan for 2026 . And is our plan for 2027 and beyond .
So the question is the following just thinking about potential sources for additional free cash flow going forward coming from reduced expenses or capex.
Speaker #3: our It's part of change in our allocation , and we capital elaborate more will about that during the next day . Nevertheless , when looking at 2026 , we are already reducing IT investments by $61 million , which is a significant reduction from where we were in 25 and more .
In the case of intangible Investments, you are guiding to Flat this year. But mentioned that some of this is due to Mining rights. Well, this type of investment on Mining rights continued for a few years, what other items within intangibles were reduced.
Other expenses that could be reduced going forward.
Jaime Muguiro: Adrian, thank you for the question. First, on intangibles, we have our cross and IT investments. Then, depending on how we procure, we acquire reserves. If those are mineral rights, they will be accounted under these intangibles. However, if we're acquiring purchasing reserves, not rights, it'll be under strategic CapEx. Please note that we will continue reducing both strategic CapEx and intangibles. That's our plan for 2026, and is our plan for 2027 and beyond. It's part of our change in our capital allocation, and we will elaborate more about that during CEMEX Day. Nevertheless, when looking at 2026, we are already reducing IT investments by $61 million, which is a significant reduction from where we were in 2025, and more so where we were in 2024.
Jaime Muguiro: Adrian, thank you for the question. First, on intangibles, we have our cross and IT investments. Then, depending on how we procure, we acquire reserves. If those are mineral rights, they will be accounted under these intangibles. However, if we're acquiring purchasing reserves, not rights, it'll be under strategic CapEx. Please note that we will continue reducing both strategic CapEx and intangibles. That's our plan for 2026, and is our plan for 2027 and beyond. It's part of our change in our capital allocation, and we will elaborate more about that during CEMEX Day. Nevertheless, when looking at 2026, we are already reducing IT investments by $61 million, which is a significant reduction from where we were in 2025, and more so where we were in 2024.
Speaker #3: So where we were in 2024 . Do expect further reductions in 2027 . Thanks for your question , Adrian .
Speaker #1: Thank you . Jaime . The next question comes from Alejandra Obregon from Morgan Stanley Aley .
Speaker #6: Hi . Good morning everyone . taking May I have my my Thank you for I have question . Hi . I think I mean you've been the role year in and you've not only driven this very strong operational turnaround , but you've also reshaped the narrative and how the company tells the story .
How we procure? We acquire reserves; if those are mineral rights, they will be accounted under, uh, these intangibles. However, if we’re acquiring or purchasing reserves, not rights, it’ll be under a strategic EPICs.
Please note that we will continue reducing uh, both strategic capex unintelligible. Um, that's our plan or 2026 and is our plan for 2027 and Beyond.
Speaker #6: So I was just wondering if we can reflect on that first year . Where do you think we could be under appreciating of the opportunities and risks of what you've found ?
Uh it's part of our change in our Capital allocation and we will elaborate more about that during the next day.
Um,
nevertheless.
Speaker #6: So meaning , what are the biggest upsides that you've found , and what are some of the challenges that you're facing now that you're you're I mean , you've been for for a while in the job that that will take you to , to take some to the , to the next chapter and to the long term North Star .
Jaime Muguiro: Do expect further reductions in 2027. Thanks for your question, Adrian.
Jaime Muguiro: Do expect further reductions in 2027. Thanks for your question, Adrian.
Speaker #6: Like , what are we missing and what what do you think are the upside and downside risks more , I mean , beyond 2026 ?
When looking at 2026, uh, we are already reducing it Investments by 61 million dollars, which is a significant reduction from from where we were in 25 and more. So what we were in 2024 do expect further, reductions in 2027.
Um, thanks for your question again.
[Company Representative] (CEMEX): Thank you, Jaime. The next question comes from Alejandra Obregon, from Morgan Stanley. Ale?
Lucy Rodriguez: Thank you, Jaime. The next question comes from Alejandra Obregon, from Morgan Stanley. Ale?
Speaker #3: Alejandro , thank you so much for the question . That's a great question that , you know , I'm very excited about it .
Thank you, honey.
Speaker #3: And we will definitely elaborate a lot of it during the next day . But what I can you is anticipate to this first opportunity and foremost is enhancing our returns shareholder as we continue improving free cash flow conversion .
The next question comes from Alejandra, orgone from Morgan. Stanley. Ali.
Alejandra Obregon: Hi, good morning, everyone. Thank you for taking my question. Jaime, I have one for you. I think, I mean, you've been close to a year in the role, and you've not only driven this very strong operational turnaround, but you've also reshaped the narrative and how the company tells the story. So I was just wondering if we can reflect on that first year, where do you think we could be under appreciating of the opportunities and risks of what you've found?
Alejandra Obregon: Hi, good morning, everyone. Thank you for taking my question. Jaime, I have one for you. I think, I mean, you've been close to a year in the role, and you've not only driven this very strong operational turnaround, but you've also reshaped the narrative and how the company tells the story. So I was just wondering if we can reflect on that first year, where do you think we could be under appreciating of the opportunities and risks of what you've found?
Speaker #3: Right . We put at the center of our capital allocation strategy the shareholders , you know that that will that's that's significant opportunity .
Speaker #3: The second thing is I continue to see as part of our transformation further structural recurring savings on one hand , because we're not done yet and we're working on it .
Alejandra Obregon: So, meaning, what are the biggest upsides that you've found, and what are some of the challenges that you're facing now that you're—I mean, you, you've been for a while in the job, that will take you to take CEMEX to the next chapter and to the long-term North Star? Like, what are we missing, and what do you think are the upside and downside risks more, I mean, beyond 2026?
Alejandra Obregon: So, meaning, what are the biggest upsides that you've found, and what are some of the challenges that you're facing now that you're—I mean, you, you've been for a while in the job, that will take you to take CEMEX to the next chapter and to the long-term North Star? Like, what are we missing, and what do you think are the upside and downside risks more, I mean, beyond 2026?
Speaker #3: And second , because we will responsibly deploy technology , including AI , right ? Expand margins . And there are some use cases that look promising that that could also boost margins in on productivity .
Hi, good morning everyone. Thank you for taking my, my question. Hi, may. I have I have 1 for you. Um, I think, I mean, you've been close to a year in the role and, and you've not only driven this very strong operational, turnaround, but you've also reshaped the narrative and, and, and how the company itself, the story. So I was just wondering if if we can reflect on that first year, uh, where do you think we could be under appreciating of the opportunities and risks of what you've found? So meaning, what are the biggest upsides that you found? And what are some of the challenges that you're facing? Now that you're, you're, I mean, you you you've been for, for a while in the job, um, that that will take you to, to take somex to the, to the next chapter. And, and, and to the long term, Northstar, like, what, what, what, what are we missing? And what, what, what do you think? Are the upside and downside risks? More, I mean Beyond 2026.
Jaime Muguiro: Alejandra, thank you so much for the question. That's a great question that, you know, I'm very excited about it, and we will definitely elaborate a lot of it during the CEMEX Day. What I can anticipate to you is this: First and foremost, is enhancing our shareholder returns. As we continue improving free cash flow conversion, right? We put at the center of our capital allocation strategy the shareholders, you know, that that's that will lead to significant opportunity. The second thing is, I continue to see, as part of our transformation, further structural recurring savings. On one hand, because we're not done yet, and we're working on it. And second, because we will responsibly deploy technology, including AI, right, to expand margins.
Jaime Muguiro: Alejandra, thank you so much for the question. That's a great question that, you know, I'm very excited about it, and we will definitely elaborate a lot of it during the CEMEX Day. What I can anticipate to you is this: First and foremost, is enhancing our shareholder returns. As we continue improving free cash flow conversion, right? We put at the center of our capital allocation strategy the shareholders, you know, that that's that will lead to significant opportunity. The second thing is, I continue to see, as part of our transformation, further structural recurring savings. On one hand, because we're not done yet, and we're working on it. And second, because we will responsibly deploy technology, including AI, right, to expand margins.
Speaker #3: The other opportunity is to accelerate profitability . Our decarbonization in Europe to the of our widen gap carbon cost curve and therefore CO2 footprint and that of importers and other European cement players , not everybody is is moving as fast as we or other leaders in the industry .
Alejandra. Thank you so much for the question. That's a great question that um you know, I'm very excited about it and we will definitely elaborate a lot of it. During the next day, what, what what I can anticipate to you is this first opportunity and for most is enhancing our shareholder returns.
Speaker #3: And that will give us a competitive advantage in Europe , combined with resilient right , mid-single digit high single digit pricing expected for Europe other .
As we continue improving free cash flow conversion, right? And we put at the center of our capital allocation strategy the shareholders, you know, that will lead to significant opportunity.
Speaker #3: big The opportunity is boosting free cash flow by reducing interest expenses not only growth CapEx and intangibles . And that's a great opportunity .
Jaime Muguiro: There are some use cases that look promising, that could also boost margins on productivity. The other opportunity is to accelerate profitably our decarbonization in Europe.
Jaime Muguiro: There are some use cases that look promising, that could also boost margins on productivity. The other opportunity is to accelerate profitably our decarbonization in Europe.
Speaker #3: I also see Bolton's M&A for the time being . First , in the US as an opportunity , but I recognize that that could also be a challenge , right ?
Uh, the second thing is, I continue to see as part of our transformation further. Structural recurring savings, um, on 1 hand because we're not done yet. Um, and we're working on it and second because we will responsibly deploy technology including AI right to expand margins. And there are some use cases that look promising that that could also boost margins um unproductivity
Speaker #3: I'm excited about gaining more exposure to infrastructure in the US . Right ? I also see opportunities to rebalance further our portfolio , not only between emerging and developed , but also unprofitable , unprofitable businesses I'll elaborate more .
Maher Al-Haffar: ... to widen the gap of our cost and carbon curve and, therefore, CO2 footprint, and that of importers and other European cement players. Not everybody is moving as fast as we or other leaders in the industry, and that will give us a competitive advantage in Europe, combined with resilience, right? Mid-single digit, high single digit pricing expected for Europe. The other big opportunity is boosting free cash flow by reducing interest expenses, not only growth CapEx and intangibles. And that's a great opportunity. I also see bolt-ons, M&A, for the time being, first in the US as an opportunity, but I recognize that that could also be a challenge, right? I'm excited about gaining more exposure to infrastructure in the US, right?
Jaime Muguiro: ... to widen the gap of our cost and carbon curve and, therefore, CO2 footprint, and that of importers and other European cement players. Not everybody is moving as fast as we or other leaders in the industry, and that will give us a competitive advantage in Europe, combined with resilience, right? Mid-single digit, high single digit pricing expected for Europe. The other big opportunity is boosting free cash flow by reducing interest expenses, not only growth CapEx and intangibles. And that's a great opportunity. I also see bolt-ons, M&A, for the time being, first in the US as an opportunity, but I recognize that that could also be a challenge, right? I'm excited about gaining more exposure to infrastructure in the US, right?
Speaker #3: But about that in the next day . Finally , challenges the new normal , right ? The geopolitical aspects that are out of our control and that make wings as we manage the business .
Speaker #3: That's why we will continue relentlessly focusing on the things that we control . So I hope that I have answered the question , Alejandro .
The other opportunity is to accelerate profitably our decarbonization in Europe, to widen the gap of our cost carbon curve and therefore, CO2 footprint and that of importers and other European. Some employers, not everybody is, is moving as fast as we or other leaders in the industry and that will give us a competitive advantage in Europe, combined with resilient right? Mid single digit High, single digit pricing expected for Europe.
Speaker #3: But I'll look forward to seeing you in New York , and we will operate more about about your question . Thanks , Alejandra .
Speaker #6: Absolutely . That was clear . Thank you .
Speaker #1: Thank you . Ali . The next question comes from Anne Milne , from Bank of America , an .
Speaker #7: Good morning . Hi . May Maher . Lucy . Thank you for the call . So my question is really dedicated to Maher or directed to Maher this year .
Um um by reducing interest expenses, not only growth capex and intangibles. Um and and that's a great opportunity. I also see boltons m&a for the time being first in the US as an opportunity but I recognize that that could also be a challenge, right? I'm
Maher Al-Haffar: I also see opportunities to further rebalance our portfolio, not only between emerging and developed, but also unprofitable, unprofitable businesses. I'll elaborate more about that in the MX day. Finally, challenges: the new normal, right? The geopolitical aspects that are out of our control, and that, you know, make swings, as we manage the business. That's why we will continue relentlessly focusing on the things that we control. So I hope that I have answered the question, Alejandra, but, I look forward to seeing you in, in New York, and, we will elaborate more about, about your question. Thanks, Alejandra.
Jaime Muguiro: I also see opportunities to further rebalance our portfolio, not only between emerging and developed, but also unprofitable, unprofitable businesses. I'll elaborate more about that in the MX day. Finally, challenges: the new normal, right? The geopolitical aspects that are out of our control, and that, you know, make swings, as we manage the business. That's why we will continue relentlessly focusing on the things that we control. So I hope that I have answered the question, Alejandra, but, I look forward to seeing you in, in New York, and, we will elaborate more about, about your question. Thanks, Alejandra.
Excited about gaining more exposure to infrastructure in the US.
Speaker #7: Almost most of your debt stack could either be is or maturing either maybe exceptions . You 1 or 2 have as you outlined in release , the bank facilities coming .
Speaker #7: Do you have the Euro 400 million ? That's due ? You ? Have you can call the 29 at par and you can call the 30s and 30 ones above .
Speaker #7: Plus you have the perp that's also callable this year . The five and eight . You also talk about , you know , reducing your leverage and paying dividends .
Speaker #7: Could you talk about what your refinancing plans are , how much of this will get paid down ? How much will will you extend and what you're thinking in terms of the capital structure ?
Right. I also see opportunities to further rebalance, our portfolio, not only between emerging and developed but also on profitable unprofitable businesses. Um, but I I'll elaborate more about that in the fex day, finally challenges The New Normal, right? The geopolitical aspects that are out of our control. And that, you know, make swings as we manage the business. That's why we will continue relentlessly focusing on the things that we control. So, I hope that I have answered the question Alejandra, but, um, I look forward to seeing you in in New York and we will elaborate more about about your question.
Francisco Suarez: Absolutely. That was clear. Thank you.
Alejandra Obregon: Absolutely. That was clear. Thank you.
Speaker #7: Thank you .
Thanks Alejandra. Absolutely, that was clear. Thank you.
[Company Representative] (CEMEX): Thank you, Ale. The next question comes from Anne Milne from Bank of America. Anne?
Lucy Rodriguez: Thank you, Ale. The next question comes from Anne Milne from Bank of America. Anne?
Speaker #2: Yes , thank you very much . And of course , you know , as we said , we continue to aspire to a , you know , one and a half to two times net leverage level for the company through the cycle , which we believe that will take us into a solid triple B rating , which we think is very important for ourselves .
Thank you, Ali.
Anne Milne: Good morning, Jaime, Maher, Lucy. Thank you for the call.
Anne Milne: Good morning, Jaime, Maher, Lucy. Thank you for the call.
Maher Al-Haffar: Morning.
Jaime Muguiro: Morning.
Anne Milne: So my question is really dedicated to Maher, or directed to Maher. This year, almost most of your debt stack is either maturing or callable, with maybe 1 or 2 exceptions. You have, as you outlined in your press release, the bank facilities coming due. You have the EUR 400 million that's due. You can call the 2029s at par, you can call the 2030s and 2031s at above par, plus you have the perp that's also callable this year, the 5 and an 8. You also talk about, you know, reducing your leverage and paying dividends. Could you talk about what your refinancing plans are? How much of this will get paid down? How much of it will you extend, and what you're thinking in terms of the capital structure? Thank you.
Anne Milne: So my question is really dedicated to Maher, or directed to Maher. This year, almost most of your debt stack is either maturing or callable, with maybe 1 or 2 exceptions. You have, as you outlined in your press release, the bank facilities coming due. You have the EUR 400 million that's due. You can call the 2029s at par, you can call the 2030s and 2031s at above par, plus you have the perp that's also callable this year, the 5 and an 8. You also talk about, you know, reducing your leverage and paying dividends. Could you talk about what your refinancing plans are? How much of this will get paid down? How much of it will you extend, and what you're thinking in terms of the capital structure? Thank you.
Speaker #2: So obviously we will continue to of our free cash flow to further reduce debt . Although priorities now are to return cash to shareholders as as we mentioned , and also to focus on growth through M&A , both on transactions .
Speaker #2: Having said that , we do have exactly a number of opportunities for liability management . Number one , the subordinated notes actually come for reset in early September .
Speaker #2: spread is the reset . Spread is 454 basis points over treasuries , which would make them prohibitively expensive . So that's one opportunity that we would like to address .
Uh, good morning. Hi Mae, Maher. Lucy, um, thank you for the call. So my question is really dedicated to Maher, uh, or directed to Maher. Uh, this year, almost most of your debt stack could either be— is either maturing or callable, with maybe one or two exceptions. You have, as you outlined in your press release, the bank facilities coming due. Uh, you have the €400 million that's due. You have— you can call the '29s at par, you can call the '30s and '31s above. Plus, you have the perp that's, um, also callable this year, the '25 and '28. Uh, you also talked about, you know, reducing your leverage and paying dividends. Could you talk about what your refinancing plans are—how much of this will get paid down, how much will you extend? And what you're thinking in terms of the capital structure? Thank you.
Maher Al-Haffar: Yes, thank you very much, Anne. Of course, you know, as we said, we continue to aspire to a, you know, 1.5 to 2 times leverage net leverage level for the company through the cycle, which we believe that will take us into a solid triple B rating, which we think is very important for ourselves. So obviously, we will continue to use some of our free cash flow to further reduce debt, although priorities now are to return cash to shareholders, as we mentioned, and also to focus on growth through M&A bolt-on transactions. Having said that, we do have exactly a number of opportunities for liability management. Number one, the subordinated notes actually come for reset in early September.
Maher Al-Haffar: Yes, thank you very much, Anne. Of course, you know, as we said, we continue to aspire to a, you know, 1.5 to 2 times leverage net leverage level for the company through the cycle, which we believe that will take us into a solid triple B rating, which we think is very important for ourselves. So obviously, we will continue to use some of our free cash flow to further reduce debt, although priorities now are to return cash to shareholders, as we mentioned, and also to focus on growth through M&A bolt-on transactions. Having said that, we do have exactly a number of opportunities for liability management. Number one, the subordinated notes actually come for reset in early September.
Yes, thank you very much. Uh, and um, of course
Speaker #2: As you know , we are also working on a transaction in the bank market that that that , you know , may come to the market in the next 2 or 3 couple of months .
Speaker #2: I would say that may of address some the . Euro funding that we have that is callable already . And also aware that you're we're in the market with a 5 to 7 and a half billion euros in the Mexican market , five year floating paper already publicly in the market .
Um, you know, uh, as, as we said, we continue to Aspire to a, um, you know, 1 and a half to 2 times, uh, leverage net leverage, uh, level for the company through the cycle. Um, which we believe that will take us into a solid Triple B, uh, rating. Which we think is very important, uh, for ourselves. So, obviously, we will continue to use some of our free cash flow to further reduce debt. Although priorities, now are to return cash to shareholders, as, uh, as we mentioned and also to focus on growth through m,
Speaker #2: And we're expecting closing that transaction sometime in the middle of February , February 16th , 17th and , and , and funding it .
Speaker #2: So there's a number of things that are happening that should give us the opportunity to do liability management . In addition to , like you said , there are some bonds that are callable at an attractive already at a decent fall rate call price .
Maher Al-Haffar: The spread is, the reset spread is 464 basis points over treasuries, which would make them prohibitively expensive. So that's one opportunity that we would like to address. As you know, we are also working on a transaction in the bank market that, that you know may come to the market in the next 2 or 3 couple of months, I will say, that may address some of the euro funding that we have that is callable already.
Maher Al-Haffar: The spread is, the reset spread is 464 basis points over treasuries, which would make them prohibitively expensive. So that's one opportunity that we would like to address. As you know, we are also working on a transaction in the bank market that, that you know may come to the market in the next 2 or 3 couple of months, I will say, that may address some of the euro funding that we have that is callable already.
Speaker #2: So we're looking you know , we're looking at constantly MTV positive opportunities . And to the extent that happens we will do that .
Speaker #2: You know we are guiding flat interest expense for the year . But there could be certainly positive upside to that as a consequence of these transactions .
Maher Al-Haffar: And also, you're aware that we're in the market with MXN 5 to 7.5 billion CBORs in the Mexican market, 5-year floating paper that is already publicly in the market, and we're expecting closing that transaction sometime in the middle of February, 16 February, 17 February, and funding it. So there's a number of things that are happening that should give us the opportunity to do liability management, in addition to, like you said, there are some bonds that are callable at an attractive, already at a decent call rate call price. So we're looking, you know, we're constantly looking at NBV positive opportunities. And to the extent that happens, we will do that.
Maher Al-Haffar: And also, you're aware that we're in the market with MXN 5 to 7.5 billion CBORs in the Mexican market, 5-year floating paper that is already publicly in the market, and we're expecting closing that transaction sometime in the middle of February, 16 February, 17 February, and funding it. So there's a number of things that are happening that should give us the opportunity to do liability management, in addition to, like you said, there are some bonds that are callable at an attractive, already at a decent call rate call price. So we're looking, you know, we're constantly looking at NBV positive opportunities. And to the extent that happens, we will do that.
Speaker #2: Not having said this , and you know , we we are comparing ourselves to our peers . And , you know , we certainly would like to extend our average life would like to , you know , create a , a an even longer runway to future maturities .
A bolt-on transaction. Having said that we do have exactly a number of opportunities. Um, for liability Management. Number 1, the uh subordinated notes. Uh, uh, actually come for reset in early September. The spread is the reset. Spread is 464 basis points over treasuries, which would make them prohibitively expensive. So that's 1 opportunity that we would like to address. As you know, we are also um working on a transaction uh in the bank Market that uh that that you know, may come to the market in the next 2 or 3 um couple of months. I will say that may address some of the Euro funding that we have. Um that is callable uh already. Uh and also uh, you're aware that we're in the market with a 5 to 7 and a half, uh, billion sabores uh, in the Mexican market 5-year, um, floating paper. Um, that is already publicly in the market and we're
Speaker #2: So we will be taking these opportunities to recalibrate our debt stack accordingly . I hope that answers your question .
Speaker #8: Yes . On the subordinated perps , are you likely to replace them to get that equity treatment or that's under evaluation ? No .
Speaker #2: It's you know , I can't say it is under evaluation . It is undervalued .
Speaker #8: Thank you .
Speaker #2: Thank you .
Speaker #1: Thanks . Anne . The next question comes via the webcast and is coming from Paul Roger from BNP . Your US cement prices were a little softer than the industry last year .
Maher Al-Haffar: You know, we are guiding flat interest expense for the year, but there could be certainly a positive upside to that as a consequence of these transactions. Now, having said this, and we, you know, we are comparing ourselves to our peers, and, you know, we certainly would like to extend our average life, and we would like to, you know, create an even longer runway to future maturity. So we will be taking these opportunities to recalibrate our debt stack accordingly. I hope that answers your question.
Expecting closing that transaction, uh, sometime in the middle of February, February, 16th, 17th, and, and, um, and funding it. Uh, so there's a number of things that are happening. That should give us the opportunity to do liability Management. In addition to like you said, there are some bonds that are callable at an attractive, already at a decent call rate, uh, call Price. So we're looking, you know, we're constantly looking at nbb, uh, positive opportunities. Um, and to the extent that happens, uh, we will
Maher Al-Haffar: You know, we are guiding flat interest expense for the year, but there could be certainly a positive upside to that as a consequence of these transactions. Now, having said this, and we, you know, we are comparing ourselves to our peers, and, you know, we certainly would like to extend our average life, and we would like to, you know, create an even longer runway to future maturity. So we will be taking these opportunities to recalibrate our debt stack accordingly. I hope that answers your question.
Speaker #1: Is that because you are quite coastal ? Was there a particular region under pricing and what's the outlook for us ? Cement this year ?
Speaker #3: Paul , thanks for the thanks for the question . Last year we did see some soft demand on some more difficult competitive dynamics in a few markets .
Anne Milne: Yes. On the subordinated perps, are you likely to replace them to get that equity treatment, or that's under evaluation as well?
Speaker #3: One was Houston , the other one was Northern Cal . And then some markets around the Mid South , particularly Atlanta . I saw cement some prices in softening of inland markets as well .
Do that. Um, you know, we are guiding flat, um, interest expense, uh, for the year. Uh, but there could be uh, certainly uh, positive upside uh, to that as a consequence of these transactions. Not having said this, uh, and we you know, we we are comparing ourselves to our peers. Um and you know, we certainly would like to extend our average life and we would like to um, you know, create a, a an even longer Runway to Future maturity. So we will be taking these opportunities to recalibrate our debt back accordingly. I hope that answers your question.
Anne Milne: Yes. On the subordinated perps, are you likely to replace them to get that equity treatment, or that's under evaluation as well?
Uh, yes, on the, uh, subordinated pairs. Are you likely to repeat, repeat?
Maher Al-Haffar: You know, I can't say it is under valuation. It is under valuation.
Your evaluation.
Maher Al-Haffar: You know, I can't say it is under valuation. It is under valuation.
Anne Milne: Okay. Thank you.
Anne Milne: Okay. Thank you.
It's, you know, I can't say it is undervaluation. It is undervalued. Okay.
Maher Al-Haffar: Thank you, Anne.
Maher Al-Haffar: Thank you, Anne.
Thank you.
[Company Representative] (CEMEX): Thanks, Anne. The next question comes via the webcast and is coming from Paul Roger, from BNP Paribas. Your US cement prices were a little softer than the industry last year. Is that because you are quite coastal? Was there a particular region under pressure? And what's the pricing outlook for US cement this year?
Lucy Rodriguez: Thanks, Anne. The next question comes via the webcast and is coming from Paul Roger, from BNP Paribas. Your US cement prices were a little softer than the industry last year. Is that because you are quite coastal? Was there a particular region under pressure? And what's the pricing outlook for US cement this year?
Speaker #3: And in that could be because there might be some excess capacity as demand begins to recover as expected . Right . That that will begin to balance out .
Thank you. Thanks. Dan?
The next question comes via the webcast and is from Paul Roger at BNP Paribas.
Speaker #3: And that should support pricing going forward . If for us , for 26 , we have announced a $8 per short ton across all our markets except Houston and effective April , April 1st .
Your US cement prices were a little softer than the industry last year. Is that because you are quite coastal? Was there a particular region under pressure, and what's the pricing outlook for US cement this year?
Jaime Muguiro: ... Paul, thanks for the, thanks for the, the question. Last year we did see some soft demand on some more difficult competitive dynamics in a few markets. One was Houston, the other one was Northern Cal, and then some markets around the Mid-South, particularly Atlanta. I saw some softening of cement prices in inland markets as well. And that could be because there might be some excess capacity. As demand begins to recover, as expected, right, that will begin to balance out, and that should support the pricing going forward. For us, for 2026, we have announced $8 per short ton across all our markets, except Houston, and effective April 1. Thanks, Paul, for your question.
Jaime Muguiro: ... Paul, thanks for the, thanks for the, the question. Last year we did see some soft demand on some more difficult competitive dynamics in a few markets. One was Houston, the other one was Northern Cal, and then some markets around the Mid-South, particularly Atlanta. I saw some softening of cement prices in inland markets as well. And that could be because there might be some excess capacity. As demand begins to recover, as expected, right, that will begin to balance out, and that should support the pricing going forward. For us, for 2026, we have announced $8 per short ton across all our markets, except Houston, and effective April 1. Thanks, Paul, for your question.
Paul, thanks for the—thanks for the question.
Speaker #3: Thanks , Paul , for your question .
Um, last year, we did see, um, some soft, um, demand and some more difficult, competitive dynamics in a few markets.
What was Houston?
Speaker #1: Great . And the next question comes from Marcelo Furlan from Itau . Marcelo .
The other 1 was Northern Kyle, and then some markets around the Midsouth particularly Atlanta.
um,
Speaker #9: Hi . Good morning . Thanks for taking my questions here . My question is related to capital allocation . So you guys mentioned the divestments made through 25 million in parliaments and so forth .
I saw some softening on some in prices in inland markets as well.
Speaker #9: So I'd like to understand .
Speaker #1: Marcelo Marcelo I'm sorry Marcelo . We understand a very yeah we're having a difficult time understanding you . I don't know if you can submit either by the .
Speaker #1: Yeah . Let's try now ahead .
Speaker #9: Okay . Is better now .
Um, that could be because there might be some like this capacity. Um, as demand begins to recover, I suspected right? That that will begin to balance out and that should support pricing going forward. If for us for um, 26, we have announced $8 for a short time across all our markets. Um, except Houston
And um, effective April, April 1st.
Speaker #1: think it's a I little better . Let's try . Marcelo , we are here . Yeah . Okay . Go ahead .
Thanks Paul for your question.
[Company Representative] (CEMEX): Great. And the next question comes from Marcelo Furlan from Itaú. Marcelo?
Lucy Rodriguez: Great. And the next question comes from Marcelo Furlan from Itaú. Marcelo?
Great. And the next question comes from Marcelo for lamb from Italo Marcela.
Marcelo Furlan: Hi, everyone. Good morning. Thanks for taking my question here. My question is related to capital allocation. You guys mentioned the investment made throughout $20 to 25 million on amounts in support. I'd like to understand.
Marcelo Furlan: Hi, everyone. Good morning. Thanks for taking my question here. My question is related to capital allocation. You guys mentioned the investment made throughout $20 to 25 million on amounts in support. I'd like to understand.
Speaker #9: Okay . Let me let me try again . So my question is related to capital allocation . So just would like to know what would expect in terms of bordered divestments for 2026 .
Speaker #9: And also the guys mentioned that 2025 was marked by the average business like 40% of total EBITDA in the US . So I just would like to understand if you guys , weeks further investments , what is the company's goal in terms of contribution from the aggregate business in the US market ?
Lucy Rodriguez: Marcelo? Marcelo?
Marcelo Furlan: Hey.
Marcelo Furlan: Hey.
[Company Representative] (CEMEX): So I'm sorry, Marcelo.
Lucy Rodriguez: So I'm sorry, Marcelo.
Marcelo Furlan: We cannot understand you.
Marcelo Furlan: We cannot understand you.
[Company Representative] (CEMEX): We are having... Yeah, we're having a difficult time understanding you. I don't know if you can-
Lucy Rodriguez: We are having... Yeah, we're having a difficult time understanding you. I don't know if you can-
Hi. Well, good morning. Export for taking my question here a question is related to to to Tech communication. So you guys mentioned in the vaccine made through all 25 million animals in support, so I'd like to understand, uh, Mark Marcelo Marcelo so I'm sorry Marcelo. We have a very, yeah, we're having a difficult time understanding you. Um,
Marcelo Furlan: Sorry.
Marcelo Furlan: Sorry.
[Company Representative] (CEMEX): Either submit by the... Yeah, let's try now. Go ahead.
Lucy Rodriguez: Either submit by the... Yeah, let's try now. Go ahead.
I don't know if you can either submit by the—yeah, let's try now. Go ahead.
Marcelo Furlan: Okay. Is it better now?
Marcelo Furlan: Okay. Is it better now?
Speaker #9: that's pretty So Hope much it you guys okay .
Okay, is it better now?
Speaker #1: Let me let Marcelo let me rephrase because I think we're having a difficult time . But I think your question is what would you expect from potential divestments in 2026 .
[Company Representative] (CEMEX): I think it's a little better. Let's try.
Lucy Rodriguez: I think it's a little better. Let's try.
I I think it's a little better. Let's let's try.
Marcelo Furlan: Hello?
Marcelo Furlan: Hello?
Speaker #1: And what would that potentially mean for reinvesting in the US ? Aggregate space ? Moving from the current 39% of EBITDA ? And so I think the question really is around potential divestments , use of proceeds of those divestments and what it might mean for us , aggregate presence .
[Company Representative] (CEMEX): Marcelo, we are here. Yeah, okay. Go ahead.
Lucy Rodriguez: Marcelo, we are here. Yeah, okay. Go ahead.
We aren't here? Yeah, okay. Go ahead.
Marcelo Furlan: Okay, let me try again. So my question is related to capital allocation. So just would like to know what to expect in terms of further, you know, divestments for 2026. And also, you guys mentioned that 2025 was marked by the aggregate business, which is actually 40% of total EBITDA in the US. So I'd just like to understand if you guys, you know, looking for the investments, what is the company's role in terms of EBITDA contribution from the aggregate business in the US market? So that's pretty much it, guys. Hope you guys-
Marcelo Furlan: Okay, let me try again. So my question is related to capital allocation. So just would like to know what to expect in terms of further, you know, divestments for 2026. And also, you guys mentioned that 2025 was marked by the aggregate business, which is actually 40% of total EBITDA in the US. So I'd just like to understand if you guys, you know, looking for the investments, what is the company's role in terms of EBITDA contribution from the aggregate business in the US market? So that's pretty much it, guys. Hope you guys-
Speaker #9: Yes . That's it .
Speaker #3: Okay , Marcelo , it okay , great . Thanks , Lucy . Because I was I was struggling to follow up Marcelo's question .
Speaker #3: Yes . We are working on some divestments and we are planning to use and proceeds . If when we complete those divestments to them reinvest responsibly .
[Company Representative] (CEMEX): Okay, let me, Marcelo, let me rephrase, 'cause I think we're having a difficult time. But I think your question is, what would you expect from potential divestments in 2026? And what would that potentially mean for reinvesting in the US aggregate space, moving from the current 39% of EBITDA? And so I think the question really, Jaime, is around potential divestments, use of proceeds of those divestments, and what it might mean for our US aggregate presence.
Lucy Rodriguez: Okay, let me, Marcelo, let me rephrase, 'cause I think we're having a difficult time. But I think your question is, what would you expect from potential divestments in 2026? And what would that potentially mean for reinvesting in the US aggregate space, moving from the current 39% of EBITDA? And so I think the question really, Jaime, is around potential divestments, use of proceeds of those divestments, and what it might mean for our US aggregate presence.
Speaker #3: And accurately . In the US , first . And we are prioritizing aggregates both ons followed by mortars , renders , plasters because those businesses have great synergies .
Okay, let me let me try again. So my my question is for me to to check the location. So just would like to know what could expect in terms of 26 and also you guys mentioned that 2025 was marked by uh the average business. Represent your 20% of total. Maybe that would be the us. So I just would like to understand. If you guys, you know, this is for the Investments. What is the company's goal in terms of maybe that contribution uh, for this exact business in the US market? So that's pretty much it, guys. Hope you guys, okay. Let me let Marcelo let me rephrase because I think we're having, um, a difficult time. But I think your question is, what would you expect from potential divestments in 2026? And what would that potentially mean for reinvesting in the US aggregate space moving from the current.
Speaker #3: Why upstream ? Because those businesses consume our admixtures , our cementitious materials , our sand . Also , they we they enjoy the same customer base and there are some synergies in distribution and supply chain .
39% of ibida. Um, and so, I think the question really hate is around potential divestments, use of proceeds of those divestments, and what it might mean for our us aggregate presence.
Marcelo Furlan: Yes, that's it.
Marcelo Furlan: Yes, that's it.
Jaime Muguiro: Okay, Marcelo. Okay, great. Thanks, Lucy, because I was struggling to follow up Marcelo's question. Yes, we are working on some divestments, and we are planning to use profits, if and when we complete those divestments, to reinvest them responsibly and equitably in the US first. And we are prioritizing aggregates, both times, followed by mortars, renders, plasters, because those businesses have great synergies. Why upstream? Because those businesses consume our admixtures, our cementitious materials, our sand. Also, they enjoy the same customer base, and there are some synergies in distribution and supply chain. So that's the space we're thinking in the US. And if you think about our M&A, we will do that very disciplined, right?
Jaime Muguiro: Okay, Marcelo. Okay, great. Thanks, Lucy, because I was struggling to follow up Marcelo's question. Yes, we are working on some divestments, and we are planning to use profits, if and when we complete those divestments, to reinvest them responsibly and equitably in the US first. And we are prioritizing aggregates, both times, followed by mortars, renders, plasters, because those businesses have great synergies. Why upstream? Because those businesses consume our admixtures, our cementitious materials, our sand. Also, they enjoy the same customer base, and there are some synergies in distribution and supply chain. So that's the space we're thinking in the US. And if you think about our M&A, we will do that very disciplined, right?
Speaker #3: So that's the space we're thinking in the US . And the if you think about our M&A , we've we will do that very disciplined .
Yes, that's it. Okay, Marcelo. Okay, great, thanks, Lucy. Because I was struggling to follow up on Marcelo's question.
Yes, we are. We're working on some divestments.
Speaker #3: . We framework right approved in and we pursue only will accusations provided that it accretive to shareholders . Otherwise we won't do them .
Um, and we are planning to use the process if and when we complete those investments.
Speaker #3: And that's part of the new capital allocation . And scheme . Our strategy . And we will elaborate much more of that during the next day .
Speaker #3: So Marcelo , thanks for your question .
To invest them responsibly and accurately, uh, in in the US first. And um, we are, um, prioritizing Aggregates both times. Followed by mortars renders plasters because those businesses have great synergies. Why Upstream? Because those businesses consume our administers.
Speaker #1: And maybe if I could just complement that , we are seeing a benefit from some of the investments that we've made in us aggregates already .
Speaker #1: I would just note that we are guiding to a mid-single digit increase in volumes for 2026 , and a piece of that is coming from the inorganic side .
There are some, and TT use materials such as sand. Also, they enjoy the same customer base. And there are some synergies in distribution and supply chain.
Um, so that's the space we're thinking um, in the US.
um,
Speaker #1: okay , the next So question comes from Daniel Rojas from Bank of America . Daniel .
Jaime Muguiro: We approved a new framework, right, and we will pursue only acquisitions provided that it's accretive to shareholders. Otherwise, we won't do them. And that's part of the new capital allocation and scheme, our strategy, and we will elaborate much more of that during the next day. So Marcelo, thanks for your question.
Jaime Muguiro: We approved a new framework, right, and we will pursue only acquisitions provided that it's accretive to shareholders. Otherwise, we won't do them. And that's part of the new capital allocation and scheme, our strategy, and we will elaborate much more of that during the next day. So Marcelo, thanks for your question.
Speaker #10: . Hi . Thank Lucy you for taking my My call . question is on Claudia Sheinbaum recently announced investment plan . It might be too early , but I was curious if maybe you have had some contact with the government to get these projects up and running as quickly as possible .
And um, the if you think about our m&a we've we will do that very disciplined, right? Um, we approved a new framework, right? Uh, um and um, we will
Pursue only.
Speaker #10: And we might see some upside to volumes in the back half of 2026 . Thank Daniel .
Accusations provided that it's equated to shareholders, otherwise we won't do that. Um, and that's part of what the new capital allocation and, um, scheme our strategy, and we will elaborate much more.
Speaker #3: Thanks for your question . We we began to see progress in the fourth quarter of last year . Things are happening as you saw , the average daily cement sales grew sequentially , but by 8% .
Of that during the next day.
So, Marcelo, thanks for your question.
[Company Representative] (CEMEX): Maybe if I could just complement that. You know, we are seeing a benefit from some of the investments that we've made in US aggregates already. I would just note that we are guiding to a mid-single digit increase in volumes for 2026, and a significant piece of that is coming from the inorganic side. Okay. The next question comes from Daniel Rojas from Bank of America. Daniel?
Lucy Rodriguez: Maybe if I could just complement that. You know, we are seeing a benefit from some of the investments that we've made in US aggregates already. I would just note that we are guiding to a mid-single digit increase in volumes for 2026, and a significant piece of that is coming from the inorganic side. Okay. The next question comes from Daniel Rojas from Bank of America. Daniel?
Speaker #3: And that is because beginning we are to enjoy incremental new social housing projects as part of the US president's social housing right efforts .
Being a benefit from some of the Investments that we've made in US Aggregates already. Um I would just note that we are guiding to a mid single digit increase in volumes for 2026 and a significant piece of that is coming from the inorganic side. So
Okay, the next question comes from Danielle roas from Bank of America essay.
Daniel Rojas: Lucy, hi, Jaime, Marcos, thank you for taking my call. My question is on Claudia Sheinbaum, recently announced investment plan.
Daniel Rojas: Lucy, hi, Jaime, Marcos, thank you for taking my call. My question is on Claudia Sheinbaum, recently announced investment plan.
Speaker #3: We are beginning to see as well Caminos . That is intensive rurales is with back cement , and that's also happening . And we are beginning to supply some important infrastructure railroad and highway projects .
Francisco Suarez: It may be too early, but I was curious. Maybe you have had some contact with the government to get these projects up and running as quickly as possible, and that we might see some upside to volumes in the back half of 2026. Thank you.
Daniel Rojas: It may be too early, but I was curious. Maybe you have had some contact with the government to get these projects up and running as quickly as possible, and that we might see some upside to volumes in the back half of 2026. Thank you.
Speaker #3: As Lucy highlighted in her in her remarks . So yes , things are happening on all those projects are already right . Part of our guidance for the next Mexico volumes .
Lucy and Tim. Thank you for taking my call. My question is on Claudia same. Bounce investment plan. Um, it may be too early, but I was curious, maybe you have had some contact with the government to get these projects up and running as quickly as possible and if you might see some upside to volumes in in the back half of 2026. Thank you.
Jaime Muguiro: Daniel, thanks for your question. We've begun to see progress in Q4 of last year. Things are happening. As you saw, the average daily cement sales grew sequentially by 8%, and that is because we are beginning to enjoy incremental new social housing projects as part of the president's social housing, right, efforts. We are beginning to see as well Caminos Rurales, that is intensive with bag cement. And that's also happening. And we are beginning to supply some important infrastructure, railroad, and highway projects, as Lucy highlighted in her remarks. So yes, things are happening, and all those projects are already, right, part of our guidance for the Mexico volumes. So thanks for the question, Daniel.
Jaime Muguiro: Daniel, thanks for your question. We've begun to see progress in Q4 of last year. Things are happening. As you saw, the average daily cement sales grew sequentially by 8%, and that is because we are beginning to enjoy incremental new social housing projects as part of the president's social housing, right, efforts. We are beginning to see as well Caminos Rurales, that is intensive with bag cement. And that's also happening. And we are beginning to supply some important infrastructure, railroad, and highway projects, as Lucy highlighted in her remarks. So yes, things are happening, and all those projects are already, right, part of our guidance for the Mexico volumes. So thanks for the question, Daniel.
Daniel. Thanks for your question. We we we we began to see progress um in the fourth quarter of last year.
Speaker #3: thanks for the So question , Daniel .
Speaker #10: Yes .
Um things are happening. Um um as you saw the average daily cement sales, grew sequentially, by by 8%
Speaker #1: Thanks , Daniel . The next question comes from Jorel Guilloty from Goldman Sachs Geral .
Speaker #11: Thank you for taking my question . So you mentioned that infrastructure and social housing are key drivers for Mexico volumes in 2026 . However , I wanted to understand how you're thinking about potential changes volumes in contingent on Usmca outcomes .
And that is because we are beginning to enjoy incremental, uh, new social housing projects, as part of the, um, the president's social housing. Right. Um,
Speaker #11: In other words , if we have a Usmca review completion this year , what could this mean volumes ? for If Usmca review goes to 2027 , what could this mean ?
Speaker #11: Thanks .
Speaker #3: Okay , so . We have not incorporated to our volume guidance for Mexico . A very positive outcome from the negotiation of the free trade agreement .
F-words we are beginning to see as well. Um casuales that is intensive is with back cement um and and that's also happening and we are beginning to supply some important uh infrastructure Railroad and Highway projects as Lucy highlighted in her in her remarks. So yes, things are happening.
Um and all those projects are already. Right? Part of our guidance for phemex, Mexico volumes.
Francisco Suarez: Gracias.
Daniel Rojas: Gracias.
So, thanks for the question, Danielle.
Speaker #3: Should that happen , then we do see upside to volumes , which I guess will materialize in 2027 and beyond . When talking to investors , they're waiting and we will see many manufacturing , industrial projects resuming as as clouds soon around the the negotiation .
Yes, ma'am.
[Company Representative] (CEMEX): Thanks, Daniel. The next question comes from Jorel Guilloty from Goldman Sachs. Jorel?
Lucy Rodriguez: Thanks, Daniel. The next question comes from Jorel Guilloty from Goldman Sachs. Jorel?
Thanks Danielle. The next question comes from Gerald gilot from Goldman Sachs Jordan.
Jorel Guilloty: Thank you for taking my question. So, you mentioned that infrastructure and social housing are key drivers for Mexico volumes in 2026. However, I wanted to understand how you're thinking about potential changes in volumes contingent on USMCA outcomes. In other words, if we have a USMCA review completion this year, what could this potentially mean for volumes? If USMCA review goes to 2027, what could this mean? Thanks.
Jorel Guilloty: Thank you for taking my question. So, you mentioned that infrastructure and social housing are key drivers for Mexico volumes in 2026. However, I wanted to understand how you're thinking about potential changes in volumes contingent on USMCA outcomes. In other words, if we have a USMCA review completion this year, what could this potentially mean for volumes? If USMCA review goes to 2027, what could this mean? Thanks.
Speaker #3: down think settle I that is the uncertainty of what might happen . What is affecting that segment of the market in our guidance for 26 , we haven't included any any driver from the Usmca negotiation .
Thank you for taking my question. So, um, you mentioned that infrastructure and social housing are key drivers from Mexico volumes in 2026. However, I wanted to understand how you're thinking about potential changes in volumes contingent on usmca outcomes. In other words, if we have a usmca review completion this year, what could this potentially need for volumes? If usmca review goes to 2027, what could this mean, thanks?
Jaime Muguiro: Okay. So, we have not incorporated to our volume guidance for Mexico, a very positive outcome from the negotiation of the free trade agreement. Should that happen, then we do see upside to volumes, which I guess will materialize in 2027 and beyond. When talking to investors, they're waiting, and we will see many manufacturing industrial projects resuming as soon as the clouds around the negotiation settle down. I think that is the uncertainty of what might happen that is affecting that segment of the market. In our guidance for 2026, we haven't included any any driver from the USMCA negotiation. So I see that as a as a as an upside risk to volumes. But it will take time for those projects to hit the ground and break ground, right?
Jaime Muguiro: Okay. So, we have not incorporated to our volume guidance for Mexico, a very positive outcome from the negotiation of the free trade agreement. Should that happen, then we do see upside to volumes, which I guess will materialize in 2027 and beyond. When talking to investors, they're waiting, and we will see many manufacturing industrial projects resuming as soon as the clouds around the negotiation settle down. I think that is the uncertainty of what might happen that is affecting that segment of the market. In our guidance for 2026, we haven't included any any driver from the USMCA negotiation. So I see that as a as a as an upside risk to volumes. But it will take time for those projects to hit the ground and break ground, right?
Okay, so
It, we have not Incorporated to our volume guidance for Mexico.
Speaker #3: So I see that as , as a as an upside risk to volumes . But it will take time for those projects to hit the ground , break ground .
A.
Very positive.
Outcome from the negotiation of the Free Trade Agreement.
Speaker #3: Right . So I guess that we might get some late this year if it happened . But in much more in 27 . Thanks for the question .
Should that happen?
Then we do see upside to volumes, which I guess will materialize.
In 20207 and Beyond.
Speaker #11: Thank you . Thank you .
When talking to investors.
Speaker #1: Thanks , Gerald . We have time for one last question and it is coming from Francisco Suarez from Scotiabank . Taco .
Um, they're waiting.
and uh, we will see
Many manufacturing industrial projects resuming.
Speaker #12: you for the call . And Thank congrats on the wonderful milestones achieved so far . Looking forward for the next ones . My question relates with your guidance in energy cost per tonne that you're expect to increase this year and it kind of strikes me to see that a because we already see a favorable outlook on oil and petcoke costs .
Um, as soon as the clouds around the negotiation settled down,
I think that is the uncertainty of what might happen. What is affecting that segment of the market in our guidance for 26 we haven't included any um any driver from the usmca.
Speaker #12: But can you elaborate a little bit more if it is to be more by electricity cost ? Or perhaps we more importantly , how these pressures in energy costs are unfolding geographically and where where those pressures higher and where are those pressures are lower .
Jaime Muguiro: So I guess that we might get some late this year if it happens, but, and much more in 2027. Thanks for the question.
Jaime Muguiro: So I guess that we might get some late this year if it happens, but, and much more in 2027. Thanks for the question.
Speaker #12: That might be very helpful . Thank you .
Negotiation. So I see that as a, as a as an upside risk to volumes but it will take time for those projects to hit the ground and break ground, right? So I I guess that we might get some late this year if it happens, but a much more in 27
Jorel Guilloty: Thank you. Thank you.
Jorel Guilloty: Thank you. Thank you.
Speaker #3: Francisco . Thanks for your question . Yes , your reading is correct in our guidance , we're expecting fuels to go down , fuel cost .
Thanks for the question. Thank you.
[Company Representative] (CEMEX): Thanks, Jorel. We have time for one last question, and it is coming from Francisco Suarez from Scotiabank. Paco?
Lucy Rodriguez: Thanks, Jorel. We have time for one last question, and it is coming from Francisco Suarez from Scotiabank. Paco?
Thank you.
Thanks, Jerrell. We have time for 1 last question and it is coming from from Cisco Suarez from Scotia Bank.
Speaker #3: It is electricity where we see the increase and that's what our our supporting guidance . And this is happening in two markets Mexico and the US .
Francisco Suarez: Hey, thank you for the call, and congrats on the wonderful milestones achieved so far. Looking forward for the next ones. My question relates with your overall guidance in energy cost per ton, that you expect to increase this year. And it kind of struck me to see that, because we already see a favorable outlook on oil and petro costs. But can you elaborate a little bit more, if it is to be more by electricity costs? Or perhaps even more importantly, how these pressures in energy costs are unfolding geographically, and where those pressures are higher and where those pressures are lower? That might be very helpful. Thank you.
Francisco Suarez: Hey, thank you for the call, and congrats on the wonderful milestones achieved so far. Looking forward for the next ones. My question relates with your overall guidance in energy cost per ton, that you expect to increase this year. And it kind of struck me to see that, because we already see a favorable outlook on oil and petro costs. But can you elaborate a little bit more, if it is to be more by electricity costs? Or perhaps even more importantly, how these pressures in energy costs are unfolding geographically, and where those pressures are higher and where those pressures are lower? That might be very helpful. Thank you.
Speaker #3: Most of the increase I'll say around 65% of it is in Mexico . And because that is in 25 there was a one off incentive to migrate to the wholesale market , which we will not have in in 2026 .
Speaker #3: And then the rest is in the US , where some utility companies that supply us based on their fuel cost and their mix of generation are announcing some cost increases as well .
Unfolding geographically and where where those versions are higher and where those pressures are lower. That might be very helpful. Thank you.
Jaime Muguiro: Francisco, thanks for your question. Yes, your reading is correct. In our guidance, we're expecting fuels to go down, fuel cost. It is electricity where we see the increase, and that's what's supporting our guidance. This is happening in two markets, Mexico and the US. Most of the increase, I'll say around 65% of it, is in Mexico, and that is because in 2025 there was a one-off incentive to migrate to the wholesale market, which we will not have in 2026. And then the rest is in the US, where some utility companies that supply us are based on their fuel cost and their mix of generation are announcing some cost increases, as well. So those are the two markets where we see that increase in electricity.
Jaime Muguiro: Francisco, thanks for your question. Yes, your reading is correct. In our guidance, we're expecting fuels to go down, fuel cost. It is electricity where we see the increase, and that's what's supporting our guidance. This is happening in two markets, Mexico and the US. Most of the increase, I'll say around 65% of it, is in Mexico, and that is because in 2025 there was a one-off incentive to migrate to the wholesale market, which we will not have in 2026. And then the rest is in the US, where some utility companies that supply us are based on their fuel cost and their mix of generation are announcing some cost increases, as well. So those are the two markets where we see that increase in electricity.
Speaker #3: So those are the two markets where we see that that increase in electricity fuels is down
Speaker #3: So those are the two markets where we see that that increase in electricity fuels is down . That's very
Francisco. Thanks for your question. Yes, your reading is correct.
Speaker #12: Thank you so clear . much .
in our guidance, we're expecting fuels to to go down fuel cost,
Speaker #3: Thank you .
Speaker #1: We appreciate you joining us today for our fourth full year , 25 2025 results . join us you'll We hope time take the to for our video webcast on February 26th , as well as for our first quarter 2026 earnings call on April 23rd .
It is electricity where we see the increase, and that's what's supporting our guidance, and this is happening in two markets: Mexico and the US.
Most of the increase, I'll say around 65% of it, is in Mexico.
Speaker #1: If you have any additional questions , please feel free to reach out to the Investor Relations team . Many thanks .
And that is because in 25, there was a 1-off incentive to migrate to the wholesale Market.
Um, which we will not have in in 2026 and then the, the rest is in the US.
Jaime Muguiro: Fuels is down.
Jaime Muguiro: Fuels is down.
Um, where some utility companies that Supply US based on their fuel cost and their mix of generation are announcing some cost increases as well. So those are the 2 markets where we see that that increase in electricity fuels is down.
Francisco Suarez: Perfect. Very clear. Thank you so much.
Francisco Suarez: Perfect. Very clear. Thank you so much.
[Company Representative] (CEMEX): We appreciate you joining us today for our Q4 and full year 2025 results. We hope you'll take the time to join us for our CEMEX Day Video Webcast on 26 February, as well as for our Q1 2026 earnings call on 23 April. If you have any additional questions, please feel free to reach out to the investor relations team. Many thanks.
Lucy Rodriguez: We appreciate you joining us today for our Q4 and full year 2025 results. We hope you'll take the time to join us for our CEMEX Day Video Webcast on 26 February, as well as for our Q1 2026 earnings call on 23 April. If you have any additional questions, please feel free to reach out to the investor relations team. Many thanks.
We appreciate you joining us today for our fourth quarter and full year 2025 results. We hope you'll take the time to join us for our CEMEX Day video webcast on February 26th, as well as for our first quarter 2026 earnings call on April 23rd. If you have any additional questions, please feel free to reach out to the investor relations team. Many thanks.
Operator: Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.
Operator: Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.
Thank you. So your participation in today's conference, this concludes the presentation. You may now disconnect
