Cementos Argos (CEMARGOS) Q2 2025 earnings summary

Executive summary

• Completed spin-off from Grupo SURA, unlocking COP 1.4 trillion in value, focusing on heavy business materials, and enhancing strategic clarity.

• Achieved total shareholder return of 480% in USD and 380% in COP, with a projected 18% dividend yield for 2025, the highest among peers.

• Advanced U.S. market reentry by acquiring a 60% stake in a major Caribbean aggregates asset and securing a U.S. port lease option.

• Selected again for the FTSE4Good Index, reflecting strong ESG practices and global sustainability leadership.

• Maintained strong cash position, supporting U.S. market re-entry and growth initiatives.

Financial highlights

• Q2 2025 revenues reached COP 1.283 trillion; EBITDA was COP 295 billion (23% margin, up 225 bps YoY); net profit for Q2 was COP 245 billion (19.1% margin).

• H1 2025 revenues totaled COP 2.5 trillion; EBITDA was COP 554 billion (22% margin); adjusted net profit was COP 381 billion, nearly double the prior year.

• Cement and ready-mix volumes declined 4.4% and 19.7% YoY, respectively.

• Net debt-to-EBITDA ratio at -7.0x, reflecting a strong cash position post-Summit transaction.

• Free cash flow conversion in Colombia at 79.2% over EBITDA, 21.5% over revenues, highest since 2021.

Outlook and guidance

• Committed to achieving an EBITDA margin above 25% and 14-15% ROCE within the next two years.

• Targeting $100–$150 million in additional EBITDA from U.S. export platform by 2030.

• Guidance for 2025 reaffirmed, supported by market recovery and ongoing optimization.

• Expecting improved market conditions in Colombia in H2 2025, driven by infrastructure and housing recovery; national housing sales up 24.9% YoY in H1 2025.

• Roadmap to generate an additional USD 300 million in annual EBITDA within 3–5 years.