Q2 2026 Cementos Argos SA Earnings Call Transcript
Key Points
- Strong performance in Colombia with 10.5% growth in local cement volumes and 15.9% in ready-mix, driven by solid project pipeline and retail recovery.
- Successful progress in building two focused platforms (Argos Materials and Argos LATAM), with key leadership hires and strategic milestones in the Dominican Republic and Tampa.
- Robust shareholder returns with total shareholder return of 750% since Sprint launch and 25% year-to-date, alongside active buybacks and dividend distributions.
- Positive demand dynamics in Central America, with cement volumes up 20.8% and strong growth in Guatemala (volumes tripled) and Panama recovery.
- Strong cash position with net debt-to-EBITDA of -4.4x, generating $148 million in interest income, providing ample capital for growth and M&A opportunities.
- Operational excellence in Colombia with OEE over 80% in 2026, driving cost control and efficiency, and a best-in-class free cash flow conversion of 77% of EBITDA in LATAM.
- Consolidated EBITDA decreased 5% year-over-year, with EBITDA margin down 175 basis points to 21.2%, impacted by higher maintenance costs and lower exports.
- Cement volumes were 7% lower year-over-year, affected by softer demand in the US market and reduced export volumes.
- Central America EBITDA declined 19% in the quarter due to planned major maintenance in Honduras, though year-to-date figures show improvement.
- Caribbean EBITDA was 2.5% lower year-over-year, with costs from the first-quarter operational disruption in the Dominican Republic recognized in the quarter.
- Adjusted net income was impacted by lower net interest income (down 17 billion pesos) due to reduced cash balance from investments, debt repayment, and shareholder distributions.
- A provision of 64 billion pesos was recorded for a foreseen adjustment to the Summit transaction, reflecting ongoing legal and indemnity obligations.
Good morning everyone and thank you for joining us today to discuss our second quarter results. My name is Carolina Velasquez, I am Cementos Argos Investor Relations Officer and I will be hosting today's call. On the call today we have Tomas Resrepo, our Executive Vice President, Natalia Ochoa, our CFO, Marisabel Echeverri, our VP of Legal Affairs, Carlos Justi, CEO of Argos LATAM, and Jason Teter, CEO of Argos Materials.
First, I would like to ask you to carefully read the legal disclaimer that is currently being projected on the screen, which is also available in the presentation posted on our website. Please note that all discussions on the financial and operational results during the call will be based on adjusted figures excluding non-recurring and non-core operations. For a detailed reconciliation of the adjustments, please refer to the annexes of our presentation.
Today, after the initial remarks, there will be a Q&A session. If you have a question, please raise your hand by pressing the icon at the bottom of
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