Q4 2024 Cemex SAB de CV Earnings Call Transcript
Key Points
- Cemex SAB de CV (CX) achieved its long-running goal of recovering its investment-grade rating, providing a foundation for future growth strategies.
- The company announced a progressive dividend program and a $500 million share buyback program, indicating a commitment to shareholder returns.
- Cemex SAB de CV (CX) significantly rebalanced its portfolio towards developed markets, with 90% of EBITDA now generated in the US, Europe, and Mexico.
- The company reported a record net income of $939 million for the year, driven by strategic divestments and operational efficiencies.
- Cemex SAB de CV (CX) made substantial progress in decarbonization, reducing Scope 1 and Scope 2 CO2 emissions by 15% and 17% respectively, compared to 2020.
- The company faces limited visibility on the 2025 outlook in Mexico due to a challenging comparable base, FX headwinds, and a new administration.
- Cemex SAB de CV (CX) experienced volume declines in several regions, including the US and Europe, due to adverse weather conditions and market dynamics.
- The depreciation of the Mexican peso resulted in a negative EBITDA effect of $48 million in the fourth quarter and $52 million for the full year.
- The company anticipates FX rates to be a headwind, particularly in Mexico and Europe, impacting financial performance in the first half of 2025.
- Cemex SAB de CV (CX) is guiding to a flattish EBITDA performance for 2025, incorporating $150 million in savings from Project Cutting Edge but facing peso headwinds.
Good morning. Welcome to the CEMEX Third Quarter 2024 Conference Call and Webcast. My name is Charlie and I'll be the operator for today. (Operator Instructions)
And now I will turn the conference over to Lucy Rodriguez, Chief Communications Officer.
Good morning. Thank you for joining us today for our fourth quarter 2024 conference call and webcast. We hope this call finds you well. I am joined today by Fernando Gonzalez, our CEO; and Maher Al-Haffar, our CFO. As always, we will spend a few minutes reviewing the business and outlook for 2025, and then we will be happy to take your questions.
As you know, in connection with the announced asset sales in 2024, a we closed the sale of our Guatemala and Philippines operations as well as the remaining minority stake in New York. Our Dominican Republic operations remained accounted for as discontinued operations as of the end of 2024. This divestment was closed last week on January 30. Our reported results assume the sale of
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