Although the results fell short of analysts’ forecasts, Mexican cement producer Cemex reported a 16% increase in fourth-quarter core profitability, supported by cost-cutting measures and higher product prices.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to $781 million for the quarter, the company said.
This missed the $795 million estimate from analysts surveyed by LSEG.
Cemex said that its cost of sales and operating expenses declined year on year.
The reductions reflected Chief Executive Jaime Muguiro’s focus on core operations and returning capital to shareholders.
Restructuring drives expenses lower
The company’s ongoing restructuring efforts weighed on its results.
Cemex reduced its workforce by 10% in the fourth quarter compared with the same period last year as part of the plan.
Severance costs related to the layoffs amounted to $48 million.
The company also recorded write-downs linked to several past acquisitions and assets, as well as charges related to the sale of its Panama unit.
As a result of these one-time items, Cemex posted a net loss for the quarter.
According to data compiled by LSEG, the result reversed a profit in the same period last year and missed analysts’ expectations of a $246.67 million net profit.
Despite the charges, sales rose 11% to $4.18 billion, beating forecasts. Cemex attributed the revenue growth to stronger performance in Mexico and in Europe, the Middle East, and Africa.
Outlook points to higher growth and investment
The company anticipates a strong single-digit increase in EBITDA in 2026.
Cemex also shared its objectives for capital expenditures. In 2026, it is projected to spend around $900 million on capital projects for maintenance and $510 million on expansion initiatives.
The board of the corporation suggested a 40% dividend increase over the $130 million paid out the previous year.
A $500 million share buyback scheme that will be implemented over the following three years was also revealed.
Focus on core assets continues
Cemex has been trying to make its portfolio more streamlined. In order to focus more on its aggregates business in the US, the corporation has attempted to sell off non-core businesses.
As part of that strategy, executives have stated in recent quarters that more divestitures are planned.
Core earnings increased as a result of the restructuring initiatives, cost cuts, and pricing adjustments.
Despite higher revenue, the quarter’s bottom line was negatively impacted by write-downs, asset sales, and severance costs, which resulted in a net loss.
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