Building Materials Firm Cemex Reports Q3 Revenue Beat On Strong Pricing Across All Regions

Zinger Key Points
  • Volumes declined 4% Y/Y each in cement and ready-to-mix segments in Q3.
  • As of Q3-end, cash and cash equivalents stood at $533 million and total debt of $7.492 billion.

Cemex SAB de CV CX reported a third-quarter (Q3) revenue increase of 9% Y/Y to $4.571 million, beating the consensus of $4.489 billion.

Results benefited from strong pricing across all markets, decelerating input cost inflation, contributions from growth investment strategy, and Urbanization Solutions business.

Volumes declined 4% Y/Y each in cement and ready-to-mix segments in Q3. 

EBITDA rose 32% Y/Y to $910 million, with margins increasing 3.5ppt Y/Y to 19.9%.

Net Sales in the U.S. operations rose 5% Y/Y, while in South, Central America, and the Caribbean region surged 11% Y/Y.

Net Sales in Mexico increased 21% Y/Y, while Europe, the Middle East, Africa, and Asia region were up 2% Y/Y.

EPS of 9 cents missed the consensus of 23 cents.

Free cash flow after maintenance capex grew significantly by 160% Y/Y to $475 million on higher EBITDA and lower working capital spending. 

As of Q3-end, cash and cash equivalents stood at $533 million and total debt of $7.492 million. 

"Importantly, we are making significant progress on our decarbonization roadmap, reducing Scope 1 and Scope 2 carbon emissions by 12% and 11%, respectively, since 2020," said CEO Fernando A. González. "Prior to the introduction of our Future in Action program in 2020, a reduction of this magnitude would have taken almost 15 years.”

FY23 Outlook: CX now expects operating EBITDA of >$3.3 billion (vs. $3.25 billion), energy cost/ton of cement produced to grow ~10%, and capital expenditures of ~$1.35 billion (vs. ~$1.25 billion earlier).

Price Action: CX shares are trading higher by 3.33% at $6.20 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesMid CapNewsGuidanceTop StoriesMarketsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!