Cementos Argos (CEMARGOS) Q3 2025 earnings summary

Executive summary

• Achieved strong operating results with 7.5% YoY cement volume growth, 18% YoY consolidated EBITDA growth, and margin expansion to 27.4% for the quarter and 24% year-to-date, on track to exceed the 25% margin target ahead of plan.

• Initiated commercial operations in the U.S. aggregates market, secured two additional port positions, and launched Argos Materials, targeting $200 million incremental EBITDA by 2030.

• Completed a $230 million share buyback at COP 13,659 per share, funded by Summit Materials divestment, representing 5% of shares outstanding and less than 10% of cash reserves.

• Total shareholder return since SPRINT launch reached 554% in USD, with a 25% total return delivered in 2025 through dividends, Grupo SURA share spin-off, and buybacks.

• Net income for the quarter reached COP 278 billion (20% margin), and year-to-date net income totaled COP 659 billion.

Financial highlights

• Quarterly revenues reached COP 1.37 trillion (+2.3% YoY), EBITDA COP 374 billion (+18.2% YoY, 27.4% margin), and net profit COP 278 billion (20% margin).

• Year-to-date revenues totaled COP 3.9 trillion, EBITDA COP 928 billion (24% margin), and net profit COP 659 billion (17% margin), nearly tripling YoY.

• Cement volumes rose 7.5% YoY to 2.47 million MT; ready-mix volumes declined 7.9% YoY.

• Gross margin improved to 27.5% YTD; operating margin at 14.9% YTD.

• Net debt-to-EBITDA at -6.7x, reflecting a strong cash position post-Summit transaction; total debt at $819 million.

Outlook and guidance

• On track to exceed 25% EBITDA margin guidance one year ahead of plan, with sustainable margins expected between 25%-30% going forward.

• Targeting $200 million incremental EBITDA by 2030 through organic growth in the U.S. aggregates platform, with CapEx under $500 million.

• Positive outlook for Colombia, with continued demand growth expected into 2026 and beyond, supported by infrastructure and residential projects.

• 2025 guidance targets EBITDA margin above 25% and ROCE of 14–15% within two years.

• Mid-term CAPEX guidance of $70–90 million; YTD CAPEX at $49.3 million.