Cemex Q4 Earnings Rise 16% on Price Hikes, Cost Cuts

Core Earnings Climb Despite Missing Estimates

Mexican cement producer Cemex announced a 16 percent increase in its fourth-quarter core earnings, reaching $781 million. This growth was driven by effective cost-cutting strategies and higher product prices. However, the figure fell slightly short of the $795 million estimate from LSEG analysts.

Strategic Restructuring and Sales Performance

The company reported a quarterly net loss, reversing gains from the previous year. This loss was attributed to one-off charges, including $48 million in severance costs from a 10 percent workforce reduction and asset write-downs. Despite these charges, quarterly sales grew 11 percent to $4.18 billion, exceeding estimates, with strong performance in Mexico and the Europe, Middle East, and Africa region.

Shareholder Returns and Future Outlook

Cemex's board has proposed a 40 percent dividend increase and announced a new $500 million share buyback program. Looking ahead, the company projects high single-digit EBITDA growth for 2026. This follows a focus on its core businesses and a strategy to return capital to shareholders.

Forward-Looking Summary

While one-time charges impacted net profit, Cemex's operational growth and cost management measures signal a positive outlook. The company's focus remains on core asset optimization, divestitures of non-core units, and enhancing shareholder value through dividends and buybacks.

FAQ

Q: Why did Cemex report a net loss despite higher core earnings?
A: The net loss was caused by one-off expenses, including $48 million in severance costs and charges related to asset sales and write-downs.

Q: What was Cemex's core earnings growth in the fourth quarter?
A: Cemex's core earnings, or EBITDA, rose by 16 percent year-on-year to $781 million.

Q: How is Cemex returning value to its shareholders?
A: The company announced a proposed 40 percent dividend increase and a three-year $500 million share buyback program.

Source: Investing.com