CEMEX (CEMEXCPO) investor relations material

Strategic transformation and operational excellence

• Project Cutting Edge transformation focuses on shareholder return, operational excellence, and disciplined capital allocation, with a robust platform for shareholder returns and asset efficiency improvements.

• Cost savings program target increased to $475 million, with 48% from overhead and 52% from operating expenses, and further savings expected.

• Asset pruning and bolt-on M&A are expected to contribute $100–150 million in free cash flow, with ongoing efficiency initiatives.

• New capital allocation framework prioritizes shareholder return, with a shift from growth CapEx to bolt-on M&A and a proposed dividend and share buybacks for 2026.

Financial performance and regional highlights

• 2Q26 consolidated EBITDA rose 24% YoY, with sales up 11% and record free cash flow from operations of $651 million.

• EBITDA margin improved by 1.4pp and EBIT margin by 1.9pp, with Project Cutting Edge a key driver.

• Mexico saw strong momentum with EBITDA up 27% YoY and margin up 4.8pp, driven by volume recovery and efficiencies.

• US operations faced margin pressure from weather and costs, but volumes remained resilient; infrastructure demand is robust.

• EMEA delivered EBITDA growth (ex-one-off), supported by pricing and cost efficiencies, despite volume challenges.

• SCAC region achieved double-digit EBITDA growth and margin expansion, led by cost discipline and demand in Colombia and Jamaica.

Business portfolio and growth

• Core businesses include cement, ready-mix concrete, aggregates, and urbanization solutions, with a focus on sustainable construction.

• Urbanization Solutions portfolio reorganized for stronger synergies, with sales up 20% and EBITDA up 8% YoY.

• Global sales for 1H26 reached ~$8.6 billion, with EBITDA of ~$1.8 billion; strong positions in the Americas and EMEA.