Financial Performance - Revenues for 2024 were $16,200 million, a decrease of 2.1% from $16,554 million in 2023[5] - Gross profit for 2024 was $5,439 million, down from $5,575 million in 2023, reflecting a gross margin of 33.5%[5] - Consolidated net income increased to $960 million in 2024, compared to $199 million in 2023, marking a significant growth[5] - Basic earnings per share from continuing operations rose to $0.0206 in 2024, compared to $0.0023 in 2023[5] - The total comprehensive income for the period was $641 million, down from $406 million in 2023, reflecting a significant decrease in other comprehensive income[16] - The EBITDA for 2024 was $3,078 million, representing a decrease of 2.3% compared to $3,149 million in 2023[62] - Operating earnings before other expenses for 2024 were $1,828 million, down from $1,959 million in 2023, indicating a decline of 6.7%[62] - The company reported a net financial expense of $555 million in 2024, compared to $539 million in 2023, indicating an increase of 3%[62] - The consolidated operating expenses for 2024 were $2,270 million, a decrease from $2,349 million in 2023, showing a reduction of 3.4%[62] - The company reported net assets by segment of $12,477 million in 2024, down from $12,116 million in 2023, suggesting a need for strategic asset management[65] Assets and Liabilities - Total assets decreased to $27,299 million in 2024 from $28,433 million in 2023, indicating a reduction in asset base[10] - Total liabilities decreased to $14,822 million in 2024 from $16,317 million in 2023, reflecting improved financial health[10] - As of December 31, 2024, total equity increased to $12,477 million from $10,909 million in 2023, representing a growth of 14.4%[16] - The balance of retained earnings as of December 31, 2024, was $5,247 million, up from $4,428 million in 2023, indicating a positive trend in profit retention[16] - As of December 31, 2024, consolidated total assets amounted to $27,299 million, an increase from $28,433 million in 2023, with total liabilities at $14,822 million[65] Cash Flow and Investments - Cash and cash equivalents at the end of 2024 were $864 million, an increase from $624 million in 2023[13] - The company reported a cash flow from operating activities of $1,753 million in 2024, compared to $2,068 million in 2023[13] - Investment in property, machinery, and equipment was $1,000 million in 2024, up from $865 million in 2023, indicating ongoing capital expenditures[13] - Capital expenditures for 2024 were $1,380 million, slightly down from $1,417 million in 2023, indicating a cautious approach to investment[65] Market and Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[5] - Cemex's strategy includes expanding its aggregates business in the U.S. through the acquisition of a non-controlling interest in a new entity specializing in aggregates production[93] Acquisitions and Divestitures - Cemex acquired a 51% controlling interest in RC-Baustoffe Berlin for $4 million, which processes up to 0.4 million tons of materials annually[38] - The acquisition of Kiesel for $13 million included a production facility and five distribution locations, with goodwill determined at $5 million[39] - Cemex completed the asset acquisition of Atlantic Minerals for $75 million, securing a long-term aggregates reserve for operations in Florida and the east coast of the U.S.[40] - The divestiture of operations in the Philippines was completed for $798 million, including two cement plants with a capacity of 5.7 million metric tons per year[47] - The sale of operations in Guatemala generated a total consideration of $212 million, with a gain on sale of $163 million recognized[49] - Cemex announced the sale of its operations in the Dominican Republic for $950 million, with assets primarily consisting of a cement plant and related facilities[50] Debt and Financing - As of December 31, 2024, Cemex's total consolidated debt was $5,529 million, a decrease from $6,228 million in 2023, representing a reduction of approximately 11.2%[130] - The company had current debt of $189 million and non-current debt of $5,340 million as of December 31, 2024[130] - Cemex's floating rate debt had an effective interest rate of 5.1% in 2024, down from 6.4% in 2023, while fixed rate debt had an effective rate of 7.3% in 2024 compared to 4.4% in 2023[130] - The company issued new debt instruments totaling $5,048 million in 2024, significantly higher than $2,938 million in 2023[130] - Debt repayments in 2024 amounted to $5,497 million, an increase from $3,840 million in 2023[130] - The company had lines of credit totaling $3,712 million as of December 31, 2024, with $2,311 million available under the revolving credit facility[133] Risk Management - Cemex's risk management strategy includes the use of derivative financial instruments to mitigate exposure to commodity price fluctuations and foreign exchange risks[180] - The maximum exposure to credit risk as of December 31, 2024, was represented by the balance of financial assets, with management implementing policies for customer credit authorization[182] - As of December 31, 2024, Cemex's estimated potential expected losses based on the ECL model was $77 million[183] Segment Performance - The United States segment generated $5,194 million in external revenues in 2024, a slight decrease from $5,338 million in 2023[60] - Mexico's external revenues in 2024 were $4,745 million, down from $4,855 million in 2023, reflecting a 2.3% decline[60] - The EMEA region's total sales in 2024 amounted to $2,737 million, with the United Kingdom contributing $953 million and Germany $424 million[60] - The SCA&C segment reported total sales of $1,301 million in 2024, with Colombia generating $466 million and Panama $125 million[60]

Financial Data and Key Metrics Changes - The company achieved a record net income of $939 million in 2024, marking a significant recovery in financial health and a leverage ratio of 1.8 times, the lowest since the global financial crisis [7][10][52] - Consolidated EBITDA margin remained resilient at 19%, with a slight increase in the fourth quarter driven by positive price/cost dynamics [15][50] - Free cash flow after maintenance CapEx was slightly higher than the prior year, supported by a $215 million improvement in working capital [51] Business Line Data and Key Metrics Changes - Urbanization solutions EBITDA increased by 4% in 2024, with margin expansion driven by growth in higher-margin businesses [22][23] - In Mexico, full-year EBITDA increased by 3%, although fourth-quarter EBITDA declined due to tough prior year comparisons [30] - EMEA operations saw a 43% increase in EBITDA in the fourth quarter, driven by volume growth and operational leverage [43][45] Market Data and Key Metrics Changes - In the U.S., cement and ready-mix volumes declined by 3% in the fourth quarter due to extreme weather events, while aggregate volumes decreased by 7% [38][36] - Mexico experienced a mixed demand environment, with cement volumes growing 6% in the first half but declining 7% in the second half [31] - EMEA showed strong recovery with all countries reporting year-over-year cement volume growth, particularly benefiting from EU-funded infrastructure spending [45][46] Company Strategy and Development Direction - The company is focusing on a growth strategy that includes a progressive dividend program and a $500 million share buyback initiative [7][9] - A new project, "Project Cutting Edge," aims to deliver $150 million in EBITDA savings in 2025 through operational efficiencies [13][54] - The company plans to prioritize small to medium-sized acquisitions in the U.S. market while reducing strategic CapEx spending [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand recovery in the U.S. and Europe, expecting volumes to begin recovering in 2025 [12][58] - The outlook for Mexico remains uncertain due to potential declines in public construction spending and FX headwinds [33][58] - The company anticipates continued pricing power to offset input cost inflation, particularly in energy [60] Other Important Information - The company successfully reduced Scope 1 and Scope 2 CO2 emissions by 15% and 17%, respectively, compared to 2020 [10][24] - The company received EUR157 million in EU innovation funding for carbon capture technology, aiming to develop its first net-zero plant [11][25] - The growth investment pipeline is expected to contribute approximately $700 million in EBITDA by 2028, with a focus on the U.S. market [28][62] Q&A Session Summary Question: Capital allocation priorities for 2025 - Management emphasized the importance of free cash flow generation and indicated that 2025 will likely be the peak year for strategic CapEx spending, with a shift towards small and medium M&A activities [70][74] Question: Pricing strategy in the U.S. and Europe - The pricing strategy remains focused on maintaining margins, with successful mid-single-digit price increases in most markets, although challenges were faced in Texas due to weather disruptions [90][134] Question: Incremental EBITDA from strategic CapEx - The $600 million in strategic CapEx is expected to contribute approximately $80 million in incremental EBITDA for 2025, with investments focused on expanding cement capacity and climate initiatives [108][115] Question: Spanish tax penalty and cash taxes guidance - Cash taxes for 2024 were $870 million, including $370 million related to Spanish tax assessments, with guidance for 2025 set at $450 million [121][122] Question: Pricing dynamics in the U.S. market - Management noted that pricing increases were successful in 75% to 80% of volumes, but faced challenges in Texas due to weather and import disruptions [134][136]

Financial Performance - Cemex reported third-quarter earnings of 14 cents per share, missing the analyst consensus estimate of 19 cents per share [1] - Quarterly sales were $4.090 billion, which also fell short of the analyst consensus estimate of $4.305 billion [1] - Following the earnings announcement, Cemex shares declined by 8.7%, closing at $5.46 [1] Analyst Ratings and Price Targets - JP Morgan analyst Adrian Huerta downgraded Cemex from Overweight to Neutral and reduced the price target from $7 to $6 [2] - Barclays analyst Benjamin Theurer maintained an Overweight rating but lowered the price target from $9 to $8 [2] - The consensus price target for Cemex is $7.2 based on the ratings of 8 analysts, with a high target of $10 from Goldman Sachs and a low of $4.9 from Redburn Partners [3] - Recent analyst ratings suggest an implied upside of 27.50% for Cemex from the average price target of $7 [3]

Group 1 - The article emphasizes a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics rather than market-driven price actions [1] - Quipus Capital's approach suggests that most recommendations will be holds, indicating a cautious stance in a bullish market, with only a small fraction of companies deemed suitable for buying at any given time [1] - The hold articles are intended to provide valuable information for future investors and introduce a healthy skepticism towards the prevailing market optimism [1] Group 2 - The author discloses no current stock or derivative positions in the companies mentioned, nor any plans to initiate such positions in the near future, indicating an unbiased perspective [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company, ensuring independence in analysis [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole, highlighting the diversity of opinions among its analysts [3]

Financial Data and Key Metrics Changes - The company reported a net income growth of over 200% year-over-year, despite a decline in sales and EBITDA for the first nine months of the year by 1% and 2% respectively [9][47] - Free cash flow after maintenance CapEx declined primarily due to a one-off $306 million tax payment related to a Spanish tax penalty [13] - The leverage ratio stood at 2.22x, slightly higher than the previous quarter, but expected to decrease significantly by year-end due to divestment proceeds [52][53] Business Line Data and Key Metrics Changes - The Organization Solutions business saw an EBITDA margin increase of 1.6 percentage points, driven by favorable pricing dynamics [19] - The aggregates business in the U.S. accounted for 36% of EBITDA, highlighting its growing importance and profitability [40] - The company experienced a decline in consolidated volumes between low- to mid-single digits, with specific impacts from weather events and construction slowdowns in various regions [14][38] Market Data and Key Metrics Changes - In Mexico, construction activity slowed post-elections, with precipitation levels 50% higher than the prior year impacting operations [33][34] - The U.S. faced significant weather challenges, including three major hurricanes, which contributed to a 6% decline in volumes, with 50% attributed to weather [69] - European operations showed signs of recovery, with stable EBITDA and volume growth for the first time in nine quarters [42] Company Strategy and Development Direction - The company is focused on portfolio optimization, with $2.2 billion in announced divestitures aimed at streamlining operations towards developed markets [6][27] - Growth strategy emphasizes investments in developed markets, particularly the U.S., expected to contribute 40% of consolidated EBITDA in the medium term [28] - The company plans to allocate proceeds from divestitures towards growth investments, deleveraging, and shareholder returns [27][90] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of extraordinary weather conditions and a challenging operating environment but expressed optimism about future growth driven by infrastructure investments and government initiatives [8][36] - The company expects to see improved demand conditions in 2025, supported by fiscal stimulus and a decrease in interest rates [58] - Management remains committed to decarbonization efforts, with significant progress in reducing CO2 emissions and ongoing investments in carbon capture technologies [22][24] Other Important Information - The company announced a 5% price increase for bagged cement in Mexico to offset cost inflation [35][77] - The company has been recognized for its sustainability initiatives, including the VeryNile project, which was highlighted in Fortune's 2024 Change the World list [11] Q&A Session Summary Question: Volume shortfall and weather impact - Management indicated that approximately 40% of the volume drop in Mexico was due to weather, with the remainder attributed to post-election slowdown [64] - In the U.S., about 50% of the volume decline was also attributed to weather, with expectations for recovery in future quarters [70] Question: Margin drop in Mexico and electricity costs - The margin drop was primarily due to higher electricity costs, which negatively impacted margins by 1.8 percentage points, offset by a 3.2 percentage point positive contribution from pricing [72][73] Question: Contribution of aggregates business - The aggregates business is expected to continue being a significant contributor to EBITDA, with opportunities for capital allocation in this area [79][80] Question: Capital allocation and investment pipeline - About $1.1 billion of the $3 billion investment pipeline has been executed, contributing over 11% to EBITDA [86] - Proceeds from asset sales will primarily be reinvested into growth opportunities, with a focus on the U.S. market [88][90] Question: Energy cost guidance and hedging - Despite challenges in Q3, the company expects a decline in energy costs for the full year, with significant hedging in place for 2025 [95][97] Question: Strategies to address stock valuation - Management is continuously evaluating strategies to maximize shareholder value but refrained from speculating on specific actions [99][100] Question: Impact of housing proposals in Mexico - The announcement of building 1 million homes is expected to positively impact residential demand, particularly in formal construction [104][106]

Core Insights - CEMEX's Mexican segment is experiencing steady growth, contributing positively to the company's topline despite challenges in other areas [1] Group 1 - The company has successfully exited the first half of the year with positive growth in the last quarter [1] - The growth in the Mexican segment is a key driver for the overall performance of CEMEX [1]

Core Insights - The article emphasizes the importance of fundamental financial ratios and metrics in stock analysis, particularly in the tech sector, suggesting that simplicity in investment philosophy can yield clearer insights [1]. Group 1 - The analyst specializes in individual stock analysis with a strong educational background in finance and economics [1]. - There is a focus on market trends, especially within the technology sector, indicating a keen interest in identifying potential investment opportunities [1]. - The analyst writes for Seeking Alpha to engage with a global community of investors, leveraging the platform's reach for idea sharing and exposure [1].

Company Developments - Cemex, S.A.B. de C.V. has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, enhancing its circularity business [1] - The acquisition will allow Cemex to process up to 400,000 tons of mineral construction, demolition, and excavation materials annually, integrating with its Regenera business [2][3] - Regenera aims to increase the recovery of construction materials, having recovered over 9 million tons in 2023, with a target of nearly 14 million tons by 2030 [3] Industry Trends - The concrete and aggregates industry is experiencing a decline in cement and ready-mix volumes across various regions, with expectations of continued declines in 2024 [6][7] - Despite the downturn, increased spending on infrastructure and public construction is anticipated to drive growth in the industry [8] - The current valuation of the Concrete & Aggregates industry is at 18.3X forward 12-month price to earnings, compared to the S&P 500's 21.2X [10] Competitor Performance - Eagle Materials has seen a 30.8% increase in shares over the past year, with expected earnings growth of 13.2% for fiscal 2024 [12] - Vulcan Materials shares have gained 8.2% in the past year, with earnings expected to rise by 11.7% in 2024 [13] - Summit Materials has experienced solid pricing growth and anticipates continued trends in 2024, with shares up 2.7% in the past year [14][15]

Market Overview - Investors are seeking affordable stocks with upside potential following a minor "flash crash" in the S&P 500, attributed to the unwinding of the "carry trade" between the Japanese yen and U.S. dollar [1] - A quick recovery in the market suggests a more optimistic outlook than initially perceived [1] Stock Recommendations - Stocks trading below $10 are highlighted for their potential gains, with Riot Platforms Inc. (NASDAQ: RIOT) being a notable mention due to its connection to the cryptocurrency market [2] - Warren Buffett's increased investment in Occidental Petroleum Co. (NYSE: OXY) is expected to positively influence Transocean Ltd. (NYSE: RIG) and Cemex (NYSE: CX) as they are positioned to benefit from the current market dynamics [2] Riot Platforms Inc. (RIOT) - Current stock price is $8.10, with a P/E ratio of 9.31 and a price target of $17.01, indicating a potential upside of 110% [3][4] - The company holds approximately 9,704 Bitcoin, valued at around $582.4 million at an average price of $60,000 per Bitcoin [5] - A decline in short interest by 6.4% over the past month suggests a shift in investor sentiment towards a bullish outlook [6] Transocean Ltd. (RIG) - Current stock price is $5.22, with a price target of $7.25, indicating a potential upside of 39% [7][9] - Analysts predict oil prices could reach $100 per barrel, which would benefit Transocean as it operates in the energy sector [10] - A 2% decline in short interest over the past month indicates a potential bullish sentiment among investors [10] Cemex (CX) - Current stock price is $6.66, with a price target of $8.78, suggesting a potential upside of 31.7% [11][13] - The real estate sector is expected to see increased demand due to potential rate cuts from the Federal Reserve, which could positively impact construction materials stocks like Cemex [11] - Analysts forecast a 17.6% growth in earnings per share (EPS) for Cemex over the next 12 months, with a price target of $12 per share from Morgan Stanley [13]

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares. Firms in this industry mine ornamental building stone such as granite, limestone and sandstone, in addition to gypsum, anhydrite, chalk, uncalcined dolomite and slate. Operators break, crush, roughly trim and saw each type of stone. ABOUT THIS INDUSTRY I ...