Core Insights - Cemex US has appointed Will Price as Senior Vice President of Mergers & Acquisitions to lead strategic growth initiatives through targeted acquisitions and divestitures [1][2][3] Company Overview - Cemex is a global building materials company with a network in the U.S. that includes 8 cement plants, nearly 50 cement terminals, about 50 aggregate quarries, and over 280 ready-mix concrete plants [5] - The company has been recognized for its sustainability efforts, earning the U.S. EPA ENERGY STAR® Partner of the Year award consecutively since 2019 [5] Leadership and Experience - Will Price has over a decade of experience in strategy and business development, previously serving as Vice President of Corporate Development and Integration at a leading manufacturer of exterior building products, where he managed transactions totaling over $3 billion in enterprise value [2][3] - Price holds a Bachelor of Science in Aerospace Engineering and an MBA in Corporate Finance [3] Strategic Focus - Price emphasized the importance of identifying opportunities that align with Cemex's long-term strategy and deliver value to customers, employees, and communities [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Overview: Cemex (CX) - Cemex currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3]. - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4]. Performance Metrics - Over the past week, Cemex shares have increased by 8.44%, while the Zacks Building Products - Concrete and Aggregates industry has declined by 1.21% [6]. - In the last month, Cemex's stock price has risen by 10.67%, significantly outperforming the industry's 0.3% increase [6]. - Over the past three months, shares have appreciated by 18.18%, and over the last year, they have surged by 78.61%, compared to the S&P 500's gains of 8.21% and 18.84%, respectively [7]. Trading Volume - The average 20-day trading volume for Cemex is 11,152,314 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, one earnings estimate for Cemex has increased, while none have decreased, leading to a consensus estimate rise from $0.75 to $0.92 [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Given the positive momentum indicators and earnings outlook, Cemex is positioned as a strong buy candidate for investors seeking short-term gains [11][12].

Core Viewpoint - Cemex (CX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For the fiscal year ending December 2025, Cemex is expected to earn $0.92 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 25.5% over the past three months [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - The upgrade of Cemex to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Investors are evaluating Cemex (CX) and Martin Marietta (MLM) for potential undervalued stock opportunities [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] Valuation Metrics - CX has a forward P/E ratio of 11.03, significantly lower than MLM's forward P/E of 32.61 [5] - CX's PEG ratio is 1.16, while MLM's PEG ratio stands at 5.59, suggesting CX is more reasonably valued considering its expected EPS growth [5] - CX's P/B ratio is 1.06, compared to MLM's P/B ratio of 3.99, further indicating that CX is undervalued relative to its book value [6] Value Grades - Based on various valuation metrics, CX holds a Value grade of B, while MLM has a Value grade of D, suggesting that CX is the superior value option at this time [6]

Group 1 - CEMEX, S.A.B. de C.V. reported Q3 '25 results, indicating a continuation of improving margins despite declining volumes due to strong pricing capability [1] Group 2 - The company has shown resilience in its operational performance, focusing on long-term earnings power and competitive dynamics within the industry [2] - The analysis emphasizes a buy-and-hold strategy, suggesting that only a small fraction of companies should be considered for purchase at any given time [2]

Group 1: Company Overview - Kraken Robotics is a strong competitor in underwater defense and energy solutions, providing military and energy companies with underwater vision through sonar solutions [1] - The company offers power and protection via subsea batteries and LiDAR solutions [1] Group 2: Market Position - Kraken Robotics supplies critical technology for underwater operations, positioning itself as a key player in the defense and energy sectors [1]

Core Insights - The article emphasizes the investment philosophy focused on identifying mispriced securities through understanding the financial drivers of companies, often revealed by DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not limited to traditional value, dividend, or growth investing, but considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy includes a major focus on small cap companies across US, Canadian, and European markets [1]

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with EBITDA margin expanding by 2.5 percentage points, reaching its highest level for a third quarter since 2020 [6][9][12] - Free cash flow from operations was close to $540 million, an improvement of more than $350 million versus the third quarter of last year, with a free cash flow conversion rate reaching 41% on a trailing 12-month basis [27][29] - Net income performance in the quarter grew by 8% when adjusting for discontinued operations, with record net income of $1.3 billion for the first nine months of the year [9][30] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew 11%, marking an expected inflection point in quarterly performance, with a 33.1% EBITDA margin achieved, the highest level since 2021 [18][20] - The U.S. operations reached record third-quarter EBITDA and EBITDA margin, driven by increased cost efficiencies and higher prices, although volumes for core products declined by 1% [20][21] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% and margin expanding by 6.8 percentage points [25][26] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, with average daily cement sales volume outperforming historical sequential seasonality patterns [18] - In Europe, high single-digit growth in cement volumes was driven by infrastructure throughout Eastern Europe, with housing activity boosting demand in Spain [24] - The EMEA region continued strong performance, reaching new records in EBITDA and margins, with ready-mix and aggregate volumes expanding by 13% and 1% respectively [24][25] Company Strategy and Development Direction - The company is focused on attaining best-in-class operational excellence and delivering industry-leading shareholder returns, with a strategic framework aimed at enhancing profitability and increasing free cash flow conversion [5][15] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [12][14] - The company is prioritizing small to mid-size acquisitions, reallocating capital to opportunities that are immediately accretive, while divesting non-core markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico and the U.S., with expectations of low single-digit growth in U.S. demand next year [20][63] - The company anticipates a pickup in infrastructure spending as the government enters its second year in office, which should support profitability in Mexico [20][42] - Management remains cautious about the residential sector in the U.S., expecting continued weakness but potential recovery in 2027 [63] Other Important Information - The company completed the divestment of its operations in Panama at an attractive multiple of about 12x, reallocating part of the proceeds to acquire a majority stake in Couch Aggregates [16] - The company is advancing its decarbonization agenda, having already surpassed the European Cement Association's 2030 consolidated net CO2 emissions target [25] Q&A Session Summary Question: Cash conversion expectations for next year and 2027 - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [33][34] Question: Outlook for Mexico's demand volumes in 2026 - Management expects demand volumes in Mexico to grow by no less than 2.5%-3% in 2026, driven by infrastructure projects [40][41] Question: Breakdown of EBITDA margin expansion in Mexico - The 500 basis points improvement in EBITDA margin was driven by prices, SG&A reductions, and lower variable costs, including a significant decrease in unitary fuel costs [46][47] Question: Industry's approach to CCUS - Management emphasized that while CCUS is important for net zero, it will only be deployed if it is accretive to value creation, focusing on traditional levers for decarbonization first [51][52] Question: Price increase plans for 2026 - Management has not yet sent price increase letters but is optimistic about pricing strategies that will offset input cost inflation in both the U.S. and Europe [54][56] Question: Regional performance differences in the U.S. - Weaker volumes were noted in Florida, California, and Arizona, while growth was seen in Texas, Colorado, and the Mid-South, with strong infrastructure demand expected to continue [60][63] Question: Optimization plans at Balcones in Texas - The use of artificial intelligence at Balcones is expected to lead to significant yield increases and further cement margin improvements [65][66] Question: Urbanization solutions business performance - The decline in revenue and EBITDA is attributed to weakness in residential and infrastructure activity, but core businesses remain integral to the company's strategy [67][68]

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with a margin expansion of 2.5 percentage points, reaching its highest level for a third quarter since 2020 [6][9][12] - Free cash flow from operations was close to $540 million, an improvement of more than $350 million versus the third quarter of last year, with a conversion rate reaching 41% on a trailing 12-month basis [27][29] - Net income performance in the quarter grew by 8% when adjusting for discontinued operations, with record net income of $1.3 billion for the first nine months of the year [9][30] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew 11%, driven by a leaner cost base and higher prices, despite lower volumes [18] - The U.S. operations reached record third-quarter EBITDA and EBITDA margin, driven by increased cost efficiencies and higher prices [20] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% and margin expanding by 6.8 percentage points [25] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, while Europe continues with its volume growth trend [8][10] - In the EMEA region, cement volumes grew high single digits, driven by infrastructure throughout Eastern Europe, with ready-mix and aggregate volumes expanding by 13% and 1% respectively in the Middle East and Africa [24][25] - The U.S. market continues to reflect strengths in infrastructure, offset by persistent softness in the residential sector [22] Company Strategy and Development Direction - The company is focused on operational excellence, free cash flow conversion, and return on capital, with a strategic shift towards small to mid-size acquisitions [15][31] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [12][14] - The company is prioritizing growth in the U.S., Mexico, and Europe, while maintaining a disciplined approach to capital allocation [15][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico, with expectations of 2.5% to 3% growth in demand volumes next year [41] - The company anticipates continued improvements in free cash flow generation and conversion rates as strategic priorities are advanced [9][31] - Management highlighted the importance of infrastructure spending and potential benefits from the upcoming renegotiation of the USMCA trade agreement [20] Other Important Information - The company completed the divestment of its operations in Panama at an attractive multiple and reinvested in Couch Aggregates to strengthen its position in the U.S. [16] - The company is advancing its decarbonization agenda, having already surpassed the European Cement Association's 2030 consolidated net CO2 emissions target [25] Q&A Session Summary Question: Cash conversion expectations for next year and 2027 - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [34] Question: Outlook for Mexico's demand recovery - Management expects demand volumes in Mexico to grow by no less than 2.5% to 3% next year, supported by infrastructure projects [41] Question: Breakdown of EBITDA margin expansion in Mexico - The 500 basis points improvement in EBITDA margin was driven by prices, SG&A reductions, and lower variable costs, including a significant decrease in unitary fuel costs [47] Question: Urbanization solutions business performance - The decline in revenue and EBITDA is mainly due to weakness in residential and infrastructure activity, not project completions [67] Question: Debt profile and maturities - Management is considering extending maturities and is comfortable with a leverage range between 1.5 to 2 times, focusing on maintaining an investment-grade rating [75][79]

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with significant margin gains driven by cost savings and higher prices [5][6][8] - EBITDA margin expanded by 2.5 percentage points, reaching its highest level for a third quarter since 2020 [7][11] - Free cash flow from operations improved significantly, reaching approximately $540 million, an increase of over $350 million year-over-year [25][26] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew by 11%, driven by a leaner cost base and higher prices despite lower volumes [16] - The U.S. operations achieved record third-quarter EBITDA and margins, supported by increased cost efficiencies and higher prices [18][19] - The EMEA region saw strong performance, with new records in EBITDA and margins, particularly in Eastern Europe and the Middle East [22][23] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, with average daily cement sales volume outperforming historical patterns [16] - In the U.S., infrastructure demand remains strong, while residential sector weakness persists [19][52] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% [24] Company Strategy and Development Direction - The company is focused on operational excellence and delivering industry-leading shareholder returns, with a strategic plan aimed at enhancing profitability and free cash flow conversion [4][13] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [11][12] - The company is prioritizing small to mid-size acquisitions in the U.S. and divesting non-core markets to strengthen its position [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico and the U.S., with expectations for volume growth in 2026 [18][39] - The company anticipates continued improvements in free cash flow conversion and operational efficiency as it progresses with its strategic initiatives [26][29] - Management highlighted the importance of maintaining a disciplined approach to capital allocation while pursuing growth opportunities [13][66] Other Important Information - The company completed the divestment of its operations in Panama and consolidated Couch Aggregates into its U.S. business [2][3][14] - The company is committed to decarbonization efforts, having surpassed the European Cement Association's 2030 CO2 emissions target [6][23] Q&A Session Summary Question: What should we expect for cash conversion next year and 2027? - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [32] Question: Can we expect a recovery in Mexico's demand volumes? - Management is confident that demand volumes in Mexico should grow by at least 2.5% to 3% next year, driven by infrastructure projects [38] Question: What contributed to the EBITDA margin expansion in Mexico? - The 500 basis points improvement was driven by price increases, reductions in SG&A, and lower variable costs, including energy [42] Question: How does the company view CCUS initiatives? - Management emphasized that CCUS remains a mid-term priority, but will only be pursued if it is accretive to value creation [45][46] Question: What is the outlook for U.S. M&A? - The company is actively looking at family-owned aggregate targets in the U.S. and is strengthening its team for bolt-on acquisitions [73]