Cementos Argos (CEMARGOS) Q1 2025 earnings summary

Executive summary

• Achieved unanimous approval for the spinoff of Grupo SURA portfolio, unlocking COP 2.2 trillion for shareholders and a 17% dividend yield, the highest among peers.

• Advanced the SPRINT 3.0 strategy, focusing on profitability, shareholder returns, and international expansion, including re-entering the U.S. aggregates market.

• Maintained a robust balance sheet and strong execution capabilities, positioning for sustainable growth through 2025 and beyond.

• Delivered a 380% total shareholder return in USD since SPRINT program inception, supported by share buybacks and value distribution initiatives.

Financial highlights

• Q1 2025 revenues reached COP 1.23 trillion, down 6.1% year-over-year; adjusted EBITDA was COP 258 billion with a 21% margin, down 121 bps year-over-year.

• Adjusted net income rose 7.5% year-over-year to COP 137 billion, excluding non-recurring gains from Summit Materials sale.

• Cement volumes declined 6.3% and ready-mix/concrete volumes fell 19.4%, impacted by local demand and adverse weather affecting exports.

• IFRS net income was COP 2.14 trillion, mainly due to the Summit Materials sale.

Outlook and guidance

• Targeting consolidated EBITDA margin above 25% and ROCE between 14–15% for 2025.

• Net debt/EBITDA expected at 2.0x, with a strong cash position post-Summit sale.

• Plans to rebuild a U.S. operation capable of generating USD 300 million in annual EBITDA within 3–5 years.

• Optimistic about Colombian market recovery in H2 2025, supported by major projects and a strong concrete backlog.