From The Motley Fool · Motley Fool Transcribing · · 3m
CEMEX Q3 2026 Earnings Results
CEMEX reports 8% net sales growth and double-digit EBITDA expansion with Project Cutting Edge savings at 80% target.
In brief
CEMEX reports 8% net sales growth and double-digit EBITDA expansion with Project Cutting Edge savings at 80% target. CEMEX achieved 80% of $475 million cost savings target through Project Cutting Edge, driving 12% EBITDA growth and 62% free cash flow conversion. Originally reported by The Motley Fool.
Q3 2026 Results
Net sales grew 8% supported by higher prices and improving cement volume trends across most markets.
EBITDA Growth
EBITDA increased 12% and EBIT grew 19% for the fifth consecutive quarter of double-digit growth.
Project Cutting Edge
Achieved $60 million in incremental savings with 80% of $475 million target reached.
Free Cash Flow
Generated $723 million in free cash flow, a 34% increase driven by higher EBITDA and lower maintenance capital expenditures.
Free Cash Flow Conversion
62% adjusted trailing 12-month rate, a 16 percentage point increase from one year ago.
Asset Pruning
Estimated $200 million in cash proceeds from completed and announced transactions involving more than 140 facilities.
Mexico Performance
Double-digit EBITDA growth and nearly 4 percentage point margin expansion supported by residential demand and government social programs.
U.S. Volumes
4% increase in cement and aggregate volumes with ready-mix volumes declining 1% due to softer market demand.
AI-Related Demand
High single-digit percentage of year-to-date ready-mix volumes in the U.S. more than doubled 2025 full-year volumes.
EMEA EBITDA
4% increase supported by strong pricing and efficiencies offsetting rising energy costs in the region.
Energy Cost Management
2% decline in year-to-date energy cost per ton of cement produced driven by lower alternative fuel costs.
Diesel Hedging Gains
$82 million year-to-date gains offsetting higher transportation and diesel costs.
Debt Reduction
$1.7 billion reduction in total debt plus subordinated notes since December 2025.
Net Financial Leverage
1.8x at quarter end, representing a nearly half turn decline since December 2025.
Mexico Social Housing
35% of 1.8 million housing unit target contracted to developers according to government figures.
Working Capital
$40 million lower investment year to date with average working capital days at minus nine.
Full Year 2026 Guidance
16% to 17% expected EBITDA growth based on a fourth-quarter peso exchange rate of 25 to 68.
U.S. Infrastructure Funding
40% of funds from the Infrastructure Investment and Jobs Act remain unspent, providing a project pipeline into 2027.
Decarbonization Progress
1% reduction in year-to-date gross CO2 emissions supported by a lower clinker factor.
Asset Pruning Outlook
$100 million to $150 million in incremental recurring free cash flow expected from the program starting in 2027.
The headline
CEMEX achieved 80% of $475 million cost savings target through Project Cutting Edge, driving 12% EBITDA growth and 62% free cash flow conversion.
