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The call emphasizes substantial operational improvements, strong free cash flow generation, meaningful cost savings from Project Cutting Edge, decarbonization progress and a shareholder-return focus (dividend increase and buyback intent). These positives are tempered by a large impairment charge, leverage above the steady-state target, regional demand softness (notably U.S. cement and early 2025 Mexico headwinds), and expected electricity cost pressure in 2026. Management provided constructive 2026 guidance (high-single-digit EBITDA growth) with identified upside levers (FX, additional savings, completed growth projects) but highlighted remaining execution and external risks.
Management guided 2026 to high‑single‑digit EBITDA growth, backed by Project Cutting Edge ($200M of recurring savings realized in 2025, a $400M target by 2027 and a $165M incremental savings tailwind for 2026, including $125M of overhead actions already taken) plus roughly $80M incremental EBITDA from completed growth projects (about half volume‑dependent). They expect maintenance CapEx, growth CapEx and intangibles to contribute ~ $195M to free cash flow versus 2025, are targeting a 50% EBITDA‑to‑operational‑FCF conversion (46% achieved on $1.4B adjusted FCF in 2025), used an FX assumption of MXN 18.25–18.50/USD (≈$75–80M EBITDA sensitivity per peso), and set capital‑allocation/credit metrics including a steady‑state net leverage goal of 1.5–2.0x (2.26x at end‑2025), a proposed $180M annual dividend (~+40% year‑over‑year) and intent to buy back up to $500M of shares over the next three years.
Realized $200 million of recurring EBITDA savings in 2025; expanded target to $400 million by 2027. Company expects ~$165 million of incremental savings in 2026 (including ~$125 million related to overhead actions already taken in 2025).
Adjusted free cash flow from operations reached $1.4 billion in 2025 with a 46% conversion rate after one-offs; reported free cash flow from operations was $1.2 billion (up 15% vs. 2024). Total adjusted free cash flow increased by more than $550 million vs prior year.
Fourth quarter sales and EBITDA increased by a double-digit rate; quarter EBITDA grew ~20% like-for-like with margin expansion of ~5 percentage points. Second half 2025 saw a 17% increase in EBITDA and a 25% jump in EBIT versus first half.
U.S. aggregates volumes grew double-digits (10% cited) in 2025, driven by investments and the Couch Aggregates consolidation. Aggregates contributed ~39% of U.S. EBITDA, nearly matching cement contribution.
Energy costs per ton of cement declined 12% in 2025 driven by lower fuel/power prices, improved clinker factor and thermal efficiency. In Q4, cost of goods sold as a % of sales fell ~44 basis points YoY and operating expenses as a % of sales fell ~62 basis points YoY.
Consolidated gross CO2 emissions declined 2% in 2025. Europe reached Cement Europe Association's 2030 gross CO2 emissions target five years early; Europe reported 507 kg CO2/ton cement equivalent in 2025, a 19% reduction vs 2020.
Divested most operations in Panama and completed other portfolio actions; Board proposed a ~$180 million annual cash dividend (≈40% increase YoY) and plans to activate buybacks of up to $500 million over the next 3 years (subject to approvals).
Guidance to high-single-digit EBITDA growth for 2026, expecting additional operating leverage, ~$165 million incremental Project Cutting Edge savings, and ~$80 million incremental EBITDA from completed growth projects (half relies on volume recovery).
Hello. Good morning, and welcome, everyone, to the CEMEX Fourth Quarter 2025 Conference Call and Webcast. My name is Becky, and I will be your operator for today. [Operator Instructions] And now I will turn the conference over to Lucy Rodriguez, Chief Communications Officer. Please proceed.\\\
Good morning, and thank you for joining us for our fourth quarter 2025 conference call and webcast. We hope this call finds you well. I am joined today by Jaime Muguiro, our CEO; and by Maher Al-Haffar, our CFO. We will start our call with a review of our fourth quarter and full year results, followed by an update on the progress made so far on our strategic plan as well as our expectations and guidance for 2026. And then we will be happy to take your questions. We will host our CEMEX Day on February 26, where we will be providing additional details on our value creation strategy and medium-term financial targets. There will be a live video webcast available. And now I will hand the call over to Jaime.\\\
Thanks, Lucy, and good day to everyone. From a results perspective, my first year as CEO has been marked by sharp contrasts as we embarked on our transformation process. As expected, our first half performance was challenged by headwinds in Mexico related to the first year of a new government administration and a weaker peso, coupled with soft demand conditions in the U.S. In contrast, the significant second half improvement was predicated on Mexico's recovery as well as early results from our ambitious and disciplined transformation announced in the second quarter. As I assume my rol...