CEMEX Reports Growth in Sales, EBITDA in 1Q23

CEMEX presented encouraging results in 1Q23, with an increase in sales and EBITDA. The company is also pouring investments toward new innovative solutions to meet the industry’s 2050 net zero emissions goal. 

“I am quite pleased with our 1Q23 growth achieved against a backdrop of challenging weather in our footprint in the US and a strong prior year comparison base. I believe this quarter marks an important inflection point in our mission to recover 2021 margins and compensate for the steep cost inflation we have experienced over the past two years,” says Fernando González, CEO, CEMEX.

CEMEX announced a 9% growth in sales and a 6% growth in EBITDA during 1Q23. The company highlighted that pricing, a decelerating inflation, investment growth and its Urbanization Solutions business were vital to support the results. CEMEX explained that the EBITDA margin showed a 1.9 percentage point increase, according to a press release. 

“Importantly, our pipeline of growth investments and our Urbanization Solutions business were a significant contributor to EBITDA growth. And, of course, we never lose sight of our decarbonization roadmap, with our Future in Action program resulting in a 3% decline in CO2 emissions versus 1Q22,” says González.

CEMEX highlighted major financial milestones: net sales increased 9% to US$4,036 million; operating EBITDA increased 6% to US$733 million; operating EBITDA margin of 18.2%, with a 1.9pp improvement and the lowest year-over-year margin decline in five quarters; and free cash flow after maintenance capital expenditures was a negative US$55 million. 

CEMEX also issued US$1 billion in subordinated perpetual notes, which are the first in the industry and present a major opportunity on its path to ameliorate its investment grade. The company also saw a 34% in the EBITDA growth of its Urbanization Solutions business and an incremental EBITDA contribution of US$40 million from growth investments and Urbanization Solutions. 

CEMEX, Sandia National Laboratories and Synhelion recently introduced a new concentrated solar power technology to rapidly produce cement, which can help the company reach the industry's net-zero carbon emissions goal by 2050, as reported by MBN. “This project gives us the opportunity to use our sustainable technology to support the decarbonization of clinker and cement production, an energy-intensive process. This solution can have a huge impact on the industry and will help pave the way towards carbon neutrality. We are proud to contribute to this goal,” says Gianluca Ambrosetti, CEO and Co-Founder, Synhelion.