GCC S A B de C V (GCC) Q1 2026 earnings summary

Executive summary

• Achieved strong top- and bottom-line growth in Q1 2026, driven by favorable weather, robust project activity in the US and Mexico, and operational execution.

• Safety performance improved, with no serious injuries and ongoing investment in workforce training and advanced technical training across operations.

• Continued progress on sustainability initiatives, including increased use of biomass, blended cement, and expanded natural gas infrastructure.

• Odessa plant expansion nearing completion, with commissioning underway and expected to enhance network efficiency and support future growth.

• Focused on supporting customers, maintaining supply, and positioning for future growth through strategic investments.

Financial highlights

• Consolidated net sales rose 19.8% year-over-year to $295.4 million in Q1 2026.

• US revenues up 15.9%, with cement volumes up 10.6% and concrete volumes up 15.9%; cement pricing declined 2.6%, concrete prices up 27.8%.

• Mexico revenues increased 28.2%, with cement volumes up 12.8% and concrete volumes up 5.9%; cement pricing down 0.8%, ready-mix pricing up 1.2%.

• EBITDA grew 18.3% to $87.1 million, with a margin of 29.5%.

• Free cash flow was negative $10.5 million, mainly due to higher working capital and tax outflows.

Outlook and guidance

• Full-year 2026 expectations remain unchanged, with Odessa startup as the key operational milestone and focus on customer support and network management.

• Guidance for $70 million in maintenance CapEx and $200 million in growth CapEx reaffirmed.

• Anticipate margin pressure in H1 due to logistics and Odessa ramp-up, with normalization expected in H2 and accelerating activity in the second half, especially in the US.

• Optimistic outlook for Mexico, with broad-based volume growth and successful price increases.

• Confident in capturing network opportunities and creating value throughout 2026.