Cementos Argos (CEMARGOS) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 profitability with ROCE at 14.1% and adjusted EBITDA margin at 22.6%, both above guidance.

• Monetized US assets, including a $2.9B cash sale of 31% of Summit, driving significant shareholder returns.

• SPRINT 2.0 and 3.0 initiatives focused on operational efficiency, capital returns, and rebuilding the US platform.

• Announced a total dividend of COP 1 trillion, a 71% increase over 2024, including an extraordinary dividend from the Summit sale.

• Strategic focus on process optimization, cost efficiencies, and US market re-entry to drive medium-term growth.

Financial highlights

• Adjusted consolidated revenue for 2024 was COP 5.3T, down 3% year-over-year; Q4 revenue grew 3% to COP 1.31T.

• Adjusted EBITDA for 2024 reached COP 1.2T, up 8.6% year-over-year; Q4 adjusted EBITDA rose 15.2% to COP 309B.

• Adjusted net income for 2024 was COP 310B, reflecting the transition from US operations to equity stake and sale.

• Net debt/EBITDA ended at 2.2x, within or below guidance.

• Cash flow from operations at year-end was COP 1.01T; final cash position COP 1.07T.

Outlook and guidance

• SPRINT 3.0 targets >25% EBITDA margin and 14–15% ROCE by 2025, with focus on Colombia, Central America, and the Caribbean.

• Ambition to rebuild US platform to deliver $300M annual EBITDA in 3–5 years using Summit sale proceeds.

• Net debt/EBITDA to be reduced to 2.0x in the medium term.

• CAPEX planned at USD 70–90M for 2025.

• Aim to enter MSCI Emerging Markets Standard Index to attract new investors.