CEMEX (CEMEXCPO) Q2 2026 earnings summary

Executive summary

• Transformation initiatives and Project Cutting Edge drove strong 2Q26 results, with consolidated EBITDA up 24% year-over-year to $1,018 million, including a $42 million one-off settlement in Europe, and record free cash flow from operations of $637 million.

• Project Cutting Edge cost savings target was raised to $475 million, with 80% of the original target achieved and most new savings expected in 2027, mainly from procurement.

• The company consolidated Omega from April 1 and advanced asset pruning, including the sale of 12 facilities and the announced sale of Colombian assets, while continuing bolt-on acquisitions.

• Three of four regions delivered EBITDA growth; Mexico outperformed with strong demand and cost efficiencies, while the US saw stable demand despite weather challenges.

• Full-year EBITDA guidance was raised to 16–17% year-over-year growth, reflecting strong first-half performance and continued transformation momentum.

Financial highlights

• Net sales for 2Q26 grew 12% year-over-year to $4,593 million; EBITDA up 24% to $1,018 million; EBIT up 38% to $681 million.

• EBITDA margin improved by 2.1pp to 22.2% in 2Q26; EBIT margin up 2.7pp to 14.8%; gross margin up 1.0pp to 35.2%.

• Free cash flow from operations reached $637 million in 2Q26, up 212% year-over-year, with a 60% conversion rate.

• Controlling net income for 2Q26 was $196 million, down 45% year-over-year due to non-operating items; earnings per ADS were $0.24, up 10% year-over-year.

• Net debt as of June 2026 was $6,225 million, with a leverage ratio of 2.08x; average debt maturity was 5.4 years, with 83% at fixed rates.

Outlook and guidance

• Full-year 2026 EBITDA guidance raised to 16–17% year-over-year growth, up from high single digits.

• Energy cost per ton of cement expected to increase low-single digits; maintenance CapEx forecast at $900 million, growth investments at $300 million, and working capital investment at $50–100 million.

• Cash taxes expected at $400 million; net interest paid to decrease by $40 million.

• Volume guidance: low-single digit cement growth globally, with Mexico and SCAC outperforming; flat to declining volumes in other regions.

• Most new Project Cutting Edge savings to be realized in 2027, with additional free cash flow opportunities of $300 million identified.