CEMEX Seizes Opportunities Amid Global Volatility
As the world grapples with the aftermath of the Iran war, CEMEX has emerged as a beacon of stability and confidence. The company's recent first quarter 2026 conference call provided insight into its proactive approach to navigating an increasingly complex global environment.
In his opening remarks, Jaime Muguiro, CEO of CEMEX, emphasized the importance of focusing on what the company can control in the face of uncertainty. He highlighted the significant progress made through their transformation efforts, which have delivered a structurally stronger cost base, higher margins, and improved free cash flow generation.
CEMEX's experience with past global conflicts has provided valuable lessons. The company has "dusted off" its Ukraine war playbook to help cushion itself in the medium term. One of the key strategies being implemented is fuel surcharges on ready-mix, as well as reviewing additional pricing increases for this year throughout the portfolio.
CEMEX's energy strategy has been a key factor in limiting direct exposure to volatile markets. The company has hedged approximately 60% of its total energy spend for 2026 through financial derivatives, yearly contracts, and regulated pricing frameworks. This proactive approach will help mitigate potential disruptions from market fluctuations.
Operationally, CEMEX's flexibility in adjusting the fuels used in their kilns allows them to switch between petcoke, natural gas, coal, and alternative fuels when economically attractive. The company also maintains two to three months of fossil fuel inventories across its network, further reducing sensitivity to market disruptions.
The war has disrupted cement supply chains, making some import sources more expensive. CEMEX expects this trend to increase pressure on U.S. cement importers, leading to relevant pricing opportunities in several U.S. markets.
The company's record quarterly EBITDA of $794 million represents a 34% increase and serves as a strong start towards achieving its full year plan. EBITDA growth was broad-based, with Mexico, EMEA, and South Central America, and the Caribbean all delivering solid results. EBITDA margin expanded meaningfully with a more than 300 basis point increase year-over-year.
Despite the challenges posed by global volatility, CEMEX's leadership remains confident in its ability to deliver full year EBITDA guidance. As Jaime Muguiro stated, "With our approach to date and our strong first quarter performance, I remain confident in our ability to deliver our full year EBITDA guidance."
