CEMEX Takes a Leap Forward in Transformation and Sustainability
CEMEX, the world's leading cement manufacturer, has made significant strides in its transformation journey and commitment to sustainability, as evident from its recently released third quarter 2026 conference call transcript. Despite facing a volatile macro environment marked by higher interest rates, energy costs, and reduced economic visibility, CEMEX's teams have remained agile and focused on delivering solid performance and sustainable progress on their strategic priorities.
CEMEX's CEO, Jaime Muguiro, highlighted the company's continued success in its transformation plan under Project Cutting Edge. The operational improvements under this project are increasingly evident in the company's results, with EBITDA and EBIT growing faster than revenue, and free cash flow from operations expanding at an even stronger pace. In fact, for the second consecutive quarter, CEMEX's adjusted trailing 12-month free cash flow from operations conversion rate reached approximately 60%.
The company has also made significant progress towards its 2027 targets set out at the CEMEX Day earlier this year, with expansion in year-to-date EBITDA and EBIT margins, as well as free cash flow conversion rate ahead of its 2027 targets. This is happening at a faster pace than originally expected.
Moreover, CEMEX has taken concrete steps towards decarbonization, with profitably reduced year-to-date gross CO2 emissions by 1%, supported by a lower clinker factor. The company's CEO emphasized that these results reinforce its confidence that the actions it is taking today are building a stronger and more resilient CEMEX, better prepared to weather this volatile macro environment.
CEMEX's results for the third quarter once again reflect the benefits of its transformation, translating into stronger profitability and cash generation. Net sales grew approximately 8%, supported by higher consolidated prices and improving cement volume trends in most markets. EBITDA and EBIT increased 12% and 19%, respectively, marking CEMEX's fifth consecutive quarter of double-digit EBITDA and EBIT growth, as well as margin expansion.
The company has also completed the sale of certain ready-mix and recycled concrete assets in the Atlanta region in the U.S., with these operations deconsolidated as of September 30th. CEMEX shall continue to consolidate its ready-mix and aggregate assets in France until the proposed divestment closes.
CEMEX's focus on digitalization and AI is also evident, with the company preparing for the next phase of its transformation driven by these technologies. As it advances these efforts, CEMEX will continue to identify new opportunities to improve operational performance and asset efficiency.
