CEMEX(CX) - 2025 Q1 - Quarterly Report

Introduction and Cautionary Statements General Information This section provides an overview of Cemex, S.A.B. de C.V. and its consolidated entities, updating information from the 2024 Annual Report and defining key terms - The report updates information from the 2024 Annual Report and should be read in conjunction with it[2] - References to 'Cemex,' 'Company,' 'we,' 'us,' or 'our' refer to Cemex, S.A.B. de C.V. and its consolidated entities[2] - Discussion of financial and operative information generally excludes operations in Guatemala, the Philippines, and the Dominican Republic, which are presented as 'Discontinued operations'[4] Cautionary Statement Regarding Forward-Looking Statements The report contains forward-looking statements subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations - Forward-looking statements are subject to risks, uncertainties, and assumptions, and actual results may vary materially[12] - Key risk factors include changes in general economic, political, and social conditions, cyclical activity of the construction sector, volatility in raw material prices, and regulatory environment changes[12][13] - The company disclaims any obligation to update or revise forward-looking statements, except as legally required[15] Cautionary Statement Regarding ESG and Sustainability Data This section provides a cautionary statement regarding the significant uncertainties involved in the collection and verification of non-financial ESG and sustainability-related data - ESG and sustainability data are subject to significant uncertainties, including methodology, data collection, verification, estimates, and third-party data[16] - Underlying data systems for non-financial reporting are less sophisticated than for financial reporting, relying on manual processes, which may result in non-comparable information[17] - There is no single globally recognized standard for 'green,' 'social,' or 'sustainable' activities, and definitions are expected to continuously evolve[18][20] Recent Developments Recent Developments Relating to our Regulatory Matters Cemex faces a property contamination claim in California and has navigated the imposition and subsequent suspension of various U.S. tariffs on imports - A claim in California state court alleges property contamination from a previously divested operation; proceedings are early, and no material adverse effect is expected[29] - U.S. tariffs of 10% on Canadian energy and 25% on Mexican and Canadian products (excluding energy) were imposed in 2025 but subsequently suspended for USMCA-compliant products[30] - The U.S. Court of International Trade struck down Country-Specific Reciprocal Tariffs and a 10% baseline tariff, but the ruling was temporarily stayed on appeal[33] - As of the report date, imports from Mexico and Canada are subject to 0% tariffs on USMCA-compliant products, while China faces 30% tariffs, and other countries 10%[34] Recent Developments Relating to Our Business Strategy Cemex's strategy focuses on sustainable growth, operational streamlining through 'Project Cutting Edge,' and a shift towards small to mid-size acquisitions in the U.S - Cemex's business strategy focuses on sustainable and profitable growth, operational streamlining via 'Project Cutting Edge,' disciplined capital allocation, and a shift to accretive small to mid-size acquisitions in the U.S[36] - 'Project Cutting Edge' initiatives include supply chain, logistics, and procurement optimization using digital technology, power and fuel mix optimization, cost reductions, and free cash flow enhancements[36] Selected Consolidated Financial Information Overview This section presents selected unaudited condensed consolidated financial data for Q1 2024 and Q1 2025, prepared in accordance with IFRS - Unaudited condensed consolidated financial statements for Q1 2025 and Q1 2024 are presented in accordance with IFRS[38][41] - Interim results are not indicative of operating results for the entire year[38] - Financial information is not reconciled to U.S. GAAP, as not required for foreign private issuers preparing under IFRS[40] Statement of Income Information Cemex reported a significant increase in controlling interest net income to $734 million in Q1 2025, driven by a substantial gain from discontinued operations Statement of Income Information (Q1 2024 vs. Q1 2025) | Statement of Income Information | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Revenues | 3,942 | 3,649 | | Cost of sales | (2,615) | (2,515) | | Gross profit | 1,327 | 1,134 | | Operating expenses | (906) | (842) | | Operating earnings before other expenses, net | 421 | 292 | | Other expenses, net | (19) | (46) | | Operating earnings | 402 | 246 | | Financial items | (139) | (76) | | Share of profit of equity accounted investees | 9 | 5 | | Earnings before income tax | 272 | 175 | | Income tax | (36) | (51) | | Discontinued operations | 22 | 618 | | Non-controlling interest net income | 4 | 8 | | Controlling interest net income | 254 | 734 | | Basic earnings per share | 0.0059 | 0.0169 | | Diluted earnings per share | 0.0058 | 0.0166 | | Basic earnings per share from continuing operations | 0.0054 | 0.0027 | | Diluted earnings per share from continuing operations | 0.0053 | 0.0026 | - Controlling interest net income significantly increased from $254 million in Q1 2024 to $734 million in Q1 2025, primarily due to a $593 million gain on sale from discontinued operations[43][58][199] - Revenues decreased by 7% from $3,942 million in Q1 2024 to $3,649 million in Q1 2025[43][75] Statement of Financial Position Information As of March 31, 2025, Cemex's total assets increased to $27,975 million, with a notable rise in cash and cash equivalents Statement of Financial Position Information (Dec 31, 2024 vs. Mar 31, 2025) | Statement of Financial Position Information | Dec 31, 2024 (Millions of Dollars) | Mar 31, 2025 (Millions of Dollars) | | :------------------------------------------ | :--------------------------------- | :--------------------------------- | | Cash and cash equivalents | 864 | 1,179 | | Assets held for sale and other current assets | 370 | 167 | | Property, machinery and equipment, net and assets for the right-of-use, net | 11,240 | 11,420 | | Other assets | 14,825 | 15,209 | | Total assets | 27,299 | 27,975 | | Current debt | 189 | 626 | | Other current liabilities | 5,903 | 5,740 | | Non-current debt | 5,340 | 4,955 | | Other non-current liabilities | 3,390 | 3,423 | | Total liabilities | 14,822 | 14,744 | | Non-controlling interest | 301 | 296 | | Total controlling interest | 12,176 | 12,935 | - Cash and cash equivalents increased by $315 million from $864 million at December 31, 2024, to $1,179 million at March 31, 2025[43] - Assets held for sale and other current assets decreased from $370 million to $167 million, reflecting recent divestitures[43] Other Financial Information Cemex's Operating EBITDA decreased by 18% to $601 million in Q1 2025, while cash flows from operating activities significantly declined Other Financial Information (Q1 2024 vs. Q1 2025) | Other Financial Information | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------------------- | :----------------------------- | :----------------------------- | | Book value per share | $0.2763 | $0.2932 | | Operating EBITDA | 731 | 601 | | Capital expenditures | 221 | 249 | | Depreciation and amortization of assets | 310 | 309 | | Cash flows provided by operating activities from continuing operations | 261 | 40 | | Basic earnings per CPO from continuing operations | 0.0159 | 0.0079 | | Basic earnings per CPO | 0.0173 | 0.0499 | | Total debt plus other financial obligations | 8,465 | 7,401 | - Operating EBITDA decreased 18% from $731 million in Q1 2024 to $601 million in Q1 2025[44][49][156] - Capital expenditures increased 13% from $221 million in Q1 2024 to $249 million in Q1 2025[44][154] - Cash flows provided by operating activities from continuing operations decreased significantly from $261 million in Q1 2024 to $40 million in Q1 2025[44][202] Reconciliation of Operating EBITDA Operating EBITDA, a non-IFRS measure, is reconciled from cash flows and serves as a key metric for management and creditors Reconciliation of Cash Flows to Operating EBITDA (Q1 2024 vs. Q1 2025) | Reconciliation of cash flows provided by operating activities from continuing operations to Operating EBITDA | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------------------------------------------------------------------------------------------------- | :----------------------------- | :----------------------------- | | Cash flow provided by operating activities from continuing operations | $261 | $40 | | Plus/minus: | | | | Changes in working capital excluding income taxes | 446 | 485 | | Depreciation and amortization of assets | (310) | (309) | | Other items, net | 24 | 76 | | Operating earnings before other expenses, net | 421 | 292 | | Plus: | | | | Depreciation and amortization of assets | 310 | 309 | | Operating EBITDA | $731 | $601 | - Operating EBITDA is a non-IFRS measure used by the CEO for performance review, profitability assessment, and resource allocation, and by creditors for evaluating debt servicing capacity[8][155] Management's Discussion and Analysis of Financial Condition and Results of Operations Overview and Basis of Presentation This section provides an overview of Cemex's financial performance for Q1 2025 compared to Q1 2024 and clarifies consolidation principles - The discussion analyzes results for Q1 2025 compared to Q1 2024, emphasizing that interim results are not indicative of full-year performance[52] - Consolidated financial statements include entities where Cemex holds a controlling interest, defined by power, exposure to variable returns, and ability to affect returns[53] - Investments in associates and joint ventures are accounted for using the equity method[54] Discontinued Operations and Significant Transactions Cemex presents results from divested segments as discontinued operations, with a significant gain on sale from its Dominican Republic and Haiti operations in Q1 2025 - Discontinued operations include results from divested segments in the Philippines (Q1 2024), Guatemala (Q1 2024), and the Dominican Republic (Q1 2024 and Jan 1-30, 2025)[56] - On January 30, 2025, Cemex sold its operations in the Dominican Republic and Haiti for $928 million, recognizing a gain on sale of $593 million, net of reclassification of foreign currency translation effects and goodwill cancellation[58] Consolidated Statements of Income Data Analysis This section provides a percentage breakdown of income statement data, highlighting a decrease in gross profit margin and a significant increase in consolidated net income Consolidated Statements of Income Data as Percentage of Revenues (Q1 2024 vs. Q1 2025) | | Q1 2024 | Q1 2025 | | :-------------------------------- | :------ | :------ | | Revenues | 100% | 100% | | Cost of sales | (66.3)% | (68.9)% | | Gross profit | 33.7% | 31.1% | | Operating expenses | (23.0)% | (23.1)% | | Operating earnings before other expenses, net | 10.7% | 8.0% | | Other expenses, net | (0.5)% | (1.3)% | | Operating earnings | 10.2% | 6.7% | | Financial expense | (3.6)% | (3.0)% | | Financial income and other items, net | 0.1% | 1.0% | | Share of profit on equity accounted investees | 0.2% | 0.1% | | Earnings before income tax | 6.9% | 4.8% | | Income tax | (0.9)% | (1.4)% | | Net income from continuing operations | 6.0% | 3.4% | | Discontinued operations | 0.5% | 16.9% | | Consolidated net income | 6.5% | 20.3% | | Non-controlling interest net income | 0.1% | 0.2% | | Controlling interest net income | 6.4% | 20.1% | - Gross profit as a percentage of revenues decreased from 33.7% in Q1 2024 to 31.1% in Q1 2025[60] - Consolidated net income as a percentage of revenues increased significantly from 6.5% in Q1 2024 to 20.3% in Q1 2025, primarily due to discontinued operations[60][196] Key Components of Results of Operations This sub-section defines the key components of Cemex's income statement, including revenues, cost of sales, operating expenses, and financial items - Revenues are mainly from the sale and distribution of cement, ready-mix concrete, aggregates, and Urbanization Solutions, accounting for 96% of consolidated external revenues in Q1 2025[61] - Cost of sales represented 68.9% of revenues in Q1 2025, up from 66.3% in Q1 2024, and includes production costs, depreciation, and raw material freight[63] - Operating expenses, comprising administrative, selling, distribution, and logistics expenses, represented 23.1% of revenues in Q1 2025, slightly up from 23.0% in Q1 2024[64] - Other expenses, net, primarily non-recurring items like restructuring costs and asset disposal results, increased from $19 million (0.5% of revenues) in Q1 2024 to $46 million (1.3% of revenues) in Q1 2025[65] - Financial income and other items, net, increased from 0.1% of revenues in Q1 2024 to 1.0% in Q1 2025, driven by foreign exchange results[66] - The average effective tax rate increased from 13.3% in Q1 2024 to 29.4% in Q1 2025[68] Three-Month Period Ended March 31, 2025 Compared to Three-Month Period Ended March 31, 2024 Cemex's consolidated performance in Q1 2025 saw a 7% decrease in revenues and an 18% decrease in Operating EBITDA compared to Q1 2024 - Consolidated domestic cement sales volumes decreased 2% to 10.2 million tons, and ready-mix concrete sales volumes increased 1% to 10.3 million cubic meters[75] - Consolidated revenues decreased 7% to $3,649 million, and operating earnings before other expenses, net, decreased 31% to $292 million[75] - Operating EBITDA decreased 18% to $601 million, with the Operating EBITDA margin declining from 18.5% to 16.5%[156] Sales Volumes and Prices by Segment This section details percentage changes in sales volumes and average domestic sales prices for each reportable segment Sales Volumes and Prices by Reportable Segment (Q1 2025 vs. Q1 2024) | Reporting Segment | Domestic Sales Volumes (Cement) | Domestic Sales Volumes (Ready-Mix Concrete) | Export Sales Volumes (Intragroup Transactions) | Export Sales Volumes (External Customers) | Average Domestic Sales Prices in Local Currency (Cement) | Average Domestic Sales Prices in Local Currency (Ready-Mix Concrete) | | :---------------- | :------------------------------ | :------------------------------------------ | :--------------------------------------------- | :---------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------------- | | Mexico | -9% | -6% | -27% | -39% | +3% | +5% | | United States | -3% | -4% | — | — | FLAT | +1% | | EMEA | | | | | | | | United Kingdom | +3% | -1% | — | — | -4% | -3% | | France | — | -11% | — | — | — | +3% | | Germany | +14% | +3% | +12% | — | -4% | -3% | | Poland | -6% | -5% | >+100% | >+100% | +2% | +10% | | Spain | +4% | +14% | -44% | +31% | -1% | +2% | | Israel | — | +29% | — | — | — | +1% | | Rest of EMEA | +6% | +14% | — | -43% | -1% | +3% | | SCA&C | | | | | | | | Colombia | FLAT | +8% | — | — | +1% | +7% | | Panama | -4% | +10% | +100% | >+100% | -2% | -2% | | Caribbean TCL | +3% | -53% | — | +33% | +5% | +2% | | Rest of SCA&C | +13% | +6% | — | +460% | -1% | +1% | Revenues by Segment Consolidated revenues decreased by 7% in Q1 2025, primarily due to lower volumes in most regions, partially offset by higher prices External Revenues by Reporting Segment (Q1 2024 vs. Q1 2025) | Reporting Segment | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | Variation in Local Currency | Approximate Currency Fluctuations | Variation in Dollars | | :---------------- | :----------------------------- | :----------------------------- | :-------------------------- | :-------------------------------- | :------------------- | | Mexico | 1,278 | 955 | -9% | -16% | -25% | | United States | 1,234 | 1,190 | -4% | — | -4% | | EMEA | | | | | | | United Kingdom | 216 | 213 | -2% | +1% | -1% | | France | 196 | 177 | -8% | -2% | -10% | | Germany | 78 | 77 | +1% | -2% | -1% | | Poland | 109 | 110 | +3% | -2% | +1% | | Spain | 100 | 104 | +7% | -3% | +4% | | Israel | 161 | 200 | +24% | +1% | +25% | | Rest of EMEA | 176 | 183 | +7% | -3% | +4% | | SCA&C | | | | | | | Colombia | 112 | 108 | +3% | -7% | -4% | | Panama | 34 | 31 | -11% | — | -11% | | Caribbean TCL | 80 | 87 | +8% | FLAT | +8% | | Rest of SCA&C | 71 | 77 | +9% | — | +9% | | Other Activities | 97 | 137 | +41% | — | +41% | | Total Consolidated| 3,942 | 3,649 | -7% | — | -7% | Cost of Sales Cost of sales decreased by 4% in Q1 2025 but increased as a percentage of revenues, mainly due to maintenance work and lower revenues Cost of Sales (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------- | :----------------------------- | :----------------------------- | | Cost of sales | 2,615 | 2,515 | | % of Revenues | 66.3% | 68.9% | - The increase in cost of sales as a percentage of revenues was mainly driven by maintenance work brought forward in the United States and a decrease in revenues[149] Gross Profit Gross profit decreased by 15% to $1,134 million in Q1 2025, with the gross profit margin declining to 31.1% Gross Profit (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------- | :----------------------------- | :----------------------------- | | Gross profit | 1,327 | 1,134 | | % of Revenues | 33.7% | 31.1% | Operating Expenses Operating expenses decreased by 7% but slightly increased as a percentage of revenues due to lower sales Operating Expenses (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------- | :----------------------------- | :----------------------------- | | Operating expenses | 906 | 842 | | % of Revenues | 23.0% | 23.1% | - The increase in operating expenses as a percentage of revenues resulted primarily from lower sales and operating expenses not decreasing in the same proportion[151] - Distribution and logistics expenses decreased from 11.7% to 10.9% of revenues[152] Operating Earnings Before Other Expenses, Net Operating earnings before other expenses, net, decreased by 31% to $292 million in Q1 2025, reflecting lower revenues and increased costs Operating Earnings Before Other Expenses, Net (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------------------------------- | :----------------------------- | :----------------------------- | | Operating earnings before other expenses, net | 421 | 292 | | % of Revenues | 10.7% | 8.0% | Depreciation and Amortization Depreciation and amortization remained stable at $309 million in Q1 2025, while capital expenditures increased by 13% Depreciation and Amortization (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Depreciation and amortization of assets | 310 | 309 | | Capital expenditures | 221 | 249 | Operating EBITDA Operating EBITDA decreased by 18% to $601 million in Q1 2025, with the Operating EBITDA margin declining to 16.5% Operating EBITDA (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------- | :----------------------------- | :----------------------------- | | Operating EBITDA | 731 | 601 | | Operating EBITDA margin | 18.5% | 16.5% | Operating Earnings and EBITDA by Segment Operating earnings and EBITDA performance varied significantly by segment, with declines in Mexico and the U.S., but strong growth in the UK, Spain, and Israel Operating Earnings Before Other Expenses, Net and Operating EBITDA by Segment (Q1 2024 vs. Q1 2025) | Reporting Segment | Operating Earnings Before Other Expenses, Net (Q1 2024) | Operating Earnings Before Other Expenses, Net (Q1 2025) | Operating EBITDA (Q1 2024) | Operating EBITDA (Q1 2025) | | :---------------- | :------------------------------------------------------ | :------------------------------------------------------ | :------------------------- | :------------------------- | | Mexico | $363 | $259 | $420 | $308 | | United States | 110 | 63 | 237 | 190 | | EMEA: | | | | | | United Kingdom | — | 14 | 21 | 36 | | France | (2) | (5) | 9 | 5 | | Germany | (16) | (19) | (9) | (12) | | Poland | 8 | 9 | 14 | 15 | | Spain | 4 | 9 | 11 | 16 | | Israel | 5 | 16 | 14 | 27 | | Rest of EMEA | 10 | 19 | 21 | 30 | | SCA&C: | | | | | | Colombia | 8 | 6 | 14 | 13 | | Panama | 5 | 3 | 9 | 7 | | Caribbean TCL | 20 | 21 | 25 | 26 | | Rest of SCA&C | 11 | 12 | 15 | 15 | | Total Consolidated| $421 | $292 | $731 | $601 | - Mexico's operating earnings before other expenses, net, decreased 29% in Dollar terms, and Operating EBITDA decreased 27%, mainly due to pre-electoral spending in 2024 and typical seasonality[158][159] - United States' operating earnings before other expenses, net, decreased 43%, and Operating EBITDA decreased 20%, primarily due to unusually bad weather conditions[160][161] - United Kingdom's operating earnings before other expenses, net, increased 2,723% in Dollar terms, and Operating EBITDA increased 67%, driven by improving market conditions and higher volumes[162][163][164] - Israel's operating earnings before other expenses, net, increased 191% in Dollar terms, and Operating EBITDA increased 86%, due to improved security situation and favorable weather[174][175] Other Expenses, Net Other expenses, net, increased significantly by 142% to $46 million in Q1 2025, primarily due to higher restructuring costs Other Expenses, Net (Q1 2024 vs. Q1 2025) | Item | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :------------------------ | :----------------------------- | :----------------------------- | | Restructuring costs | $(1) | $(38) | | Results from the sale of assets and others, net | (16) | (7) | | Impairment losses | (2) | (1) | | Total | $(19) | $(46) | - The increase was mainly due to an increase in restructuring costs resulting from an organizational transformation initiative[187] Financial Expenses Financial expense decreased by 21% to $114 million in Q1 2025, mainly due to a reduction in financial debt and lower interest rates Financial Expense (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------- | :----------------------------- | :----------------------------- | | Financial expense | 144 | 114 | - The decrease was primarily attributable to a decrease in financial debt and lower interest rates[189] Financial Income and Other Items, Net Financial income and other items, net, increased significantly by 660% to $38 million in Q1 2025, driven by foreign exchange gains Financial Income and Other Items, Net (Q1 2024 vs. Q1 2025) | Item | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :------------------------------ | :----------------------------- | :----------------------------- | | Foreign exchange results | $25 | $67 | | Financial income | 10 | 8 | | Results from financial instruments, net | (4) | (16) | | Net interest cost of defined benefit liabilities | (9) | (7) | | Effects of amortized cost on assets and liabilities | (16) | (14) | | Others | (1) | — | | Total | $5 | $38 | - The increase was mainly due to a $67 million gain in foreign exchange results in Q1 2025, compared to $25 million in Q1 2024, driven by the Mexican Peso's fluctuation against the Dollar[190] Income Taxes Income tax expense increased to $51 million in Q1 2025, mainly due to higher current income tax expense Income Tax Expense (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :-------------- | :----------------------------- | :----------------------------- | | Income tax expense | 36 | 51 | - Current income tax expense increased from $36 million to $56 million, while deferred income tax shifted from a $0.1 million benefit to a $5 million benefit[193] - The lower income tax expense in Q1 2024 was mainly due to the partial reversal of a provision related to Spain's tax fines from prior years[193] Net Income from Continuing Operations Net income from continuing operations decreased to $124 million in Q1 2025, representing 3.4% of revenues Net Income from Continuing Operations (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net income from continuing operations | 236 | 124 | | % of Revenues | 6.0% | 3.4% | Discontinued Operations Net income from discontinued operations significantly increased to $618 million in Q1 2025, due to a gain on the sale of Dominican Republic operations Net Income from Discontinued Operations (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :------------------------ | :----------------------------- | :----------------------------- | | Discontinued operations | 22 | 618 | | % of Revenues | 0.5% | 16.9% | - The increase was primarily due to a net gain on sale of operations in the Dominican Republic of $593 million in Q1 2025[195] Consolidated Net Income Consolidated net income increased substantially to $742 million in Q1 2025, largely driven by the gain from discontinued operations Consolidated Net Income (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------------- | :----------------------------- | :----------------------------- | | Consolidated net income | 258 | 742 | | % of Revenues | 6.5% | 20.3% | Non-controlling Interest Net Income Non-controlling interest net income doubled to $8 million in Q1 2025 due to higher net income in relevant consolidated entities Non-controlling Interest Net Income (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :------------------------------ | :----------------------------- | :----------------------------- | | Non-controlling interest net income | 4 | 8 | - The increase is primarily attributable to an increase in the net income of consolidated entities in which others have a non-controlling interest[198] Controlling Interest Net Income Controlling interest net income increased to $734 million in Q1 2025, representing 20.1% of revenues Controlling Interest Net Income (Q1 2024 vs. Q1 2025) | Metric | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------------------- | :----------------------------- | :----------------------------- | | Controlling interest net income | 254 | 734 | | % of Revenues | 6.4% | 20.1% | Liquidity and Capital Resources Operating Activities Cash flows from operating activities decreased significantly in Q1 2025 due to reduced operating earnings and increased investment in working capital - Operating liquidity needs are primarily met through subsidiary operations, supplemented by cost-cutting, credit facilities, debt/equity offerings, and asset sales[200][201] - Cash flows provided by operating activities from continuing operations decreased from $261 million in Q1 2024 to $40 million in Q1 2025[202] - The decrease was mainly due to reduced operating earnings and an increase in investment in working capital[202] Sources and Uses of Cash In Q1 2025, Cemex experienced a $289 million increase in cash from continuing operations, driven by investing activities from asset disposals Sources and Uses of Cash (Q1 2024 vs. Q1 2025) | Item | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------------------------------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net income | $258 | $742 | | Net cash flows used in operating activities after interest and income taxes | (19) | (139) | | Net cash flows provided by (used in) investing activities | (181) | 605 | | Net cash flows (used in) provided by financing activities | 65 | (180) | | Increase (decrease) in cash and cash equivalents from continuing operations | (150) | 289 | | Cash and cash equivalents at end of period | 476 | 1,179 | - Q1 2025 saw an increase of $289 million in cash and cash equivalents from continuing operations, primarily from $605 million in investing activities (disposal of subsidiaries)[206][209] - Q1 2025 operating activities used $136 million after interest and taxes, and financing activities used $180 million[206][209] - Q1 2024 experienced a decrease of $150 million in cash from continuing operations, with $64 million used in operating activities and $151 million used in investing activities, partially offset by $65 million from financing activities[211][213] Capital Expenditures Cemex's capital expenditures from continuing operations increased by 13% to $249 million in Q1 2025, with significant commitments for the remainder of the year Capital Expenditures by Segment (Q1 2024 vs. Q1 2025) | Segment | Q1 2024 (Millions of Dollars) | Q1 2025 (Millions of Dollars) | | :---------------- | :----------------------------- | :----------------------------- | | Mexico | $48 | $45 | | United States | 91 | 104 | | EMEA: | | | | United Kingdom | 6 | 11 | | France | 9 | 5 | | Germany | 7 | 9 | | Poland | 7 | 11 | | Spain | 6 | 12 | | Israel | 4 | 7 | | Rest of EMEA | 12 | 8 | | SCA&C: | | | | Colombia | 16 | 20 | | Panama | 2 | 1 | | Caribbean TCL | 3 | 9 | | Rest of SCA&C | 7 | 2 | | Others | 3 | 5 | | Total consolidated| 221 | 249 | | Of which: | | | | Expansion capital expenditures | 55 | 93 | | Base capital expenditure | 166 | 156 | - Total consolidated capital expenditures increased from $221 million in Q1 2024 to $249 million in Q1 2025[218] - As of March 31, 2025, capital expenditure commitments for significant projects amounted to $1,151 million, expected to be incurred by December 31, 2025[218] Our Indebtedness As of March 31, 2025, Cemex's total debt plus other financial obligations amounted to $7,401 million, with various sustainability-linked credit agreements - Total debt plus other financial obligations (excluding subordinated notes) was $7,401 million as of March 31, 2025[219] - Debt currency breakdown: 66% Dollar-denominated, 16% Euro-denominated, 14% Mexican Peso-denominated, 2% Pound Sterling-denominated, and 2% other currencies[219] - Key debt instruments include the Amended 2021 Credit Agreement ($1,000 million outstanding), Mexican Peso Banorte Agreement ($293 million outstanding), and 2022 EUR Credit Agreement (€450 million term loan)[239][243][245][246] - Many debt agreements are sustainability-linked, with interest rate adjustments based on CO2 emissions reduction and green energy use[229][238][241][246] - Cemex was in compliance with all financial covenants as of March 31, 2025, but warns of material adverse effects if unable to comply or refinance debt[247][253] Amended 2021 Credit Agreement The Amended 2021 Credit Agreement, for up to $3.25 billion, was refinanced and extended to October 2028 and includes sustainability-linked interest rate adjustments - The Amended 2021 Credit Agreement has a final maturity in October 2028, with a $1 billion term loan and $2 billion revolving facility[238] - Interest rates are SOFR-based with a margin of 100-175 basis points, subject to sustainability-linked adjustments[238] - As of March 31, 2025, $1,000 million was outstanding, and $2,000 million was available under the committed revolving credit tranche[215][239] Mexican Peso Banorte Agreement The Mexican Peso Banorte Agreement was refinanced and extended to 2028, providing a 5-year amortizing Ps 6,000 million sustainability-linked term loan - The Mexican Peso Banorte Agreement was refinanced to a 5-year amortizing Ps 6,000 million term loan, maturing in 2028[241] - It is sustainability-linked and has terms substantially similar to the Amended 2021 Credit Agreement[241] - As of March 31, 2025, $293 million (Mexican Peso equivalent) was outstanding[243] 2022 EUR Credit Agreement The 2022 EUR Credit Agreement was amended to include a €450 million term loan and a new €300 million revolving facility, both sustainability-linked - The 2022 EUR Credit Agreement includes a €450 million term loan (maturing April 2029) and a €300 million revolving facility (maturing April 2028)[248] - It is denominated in Euros, sustainability-linked, and has financial covenants (max leverage ratio 3.75x, min interest coverage ratio 2.75x)[246][248] - As of March 31, 2025, $487 million (Euro equivalent) was outstanding, and €300 million was available under the revolving facility[215][276] Notes Cemex has various outstanding senior notes that impose operating and financial restrictions, with covenants that may be suspended if investment-grade ratings are achieved - Outstanding notes include March 2026 Euro Notes, November 2029 Dollar Notes, September 2030 Dollar Notes, July 2031 Dollar Notes, and CEBURES[277] - These notes impose operating and financial restrictions, limiting debt incurrence, dividend payments, investments, and liens[277] - All notes are fully and unconditionally guaranteed by the Refinancing Guarantors (Cemex Corp, Cemex Concretos, S.A. de C.V, COM, and CIH)[278][279][280][281][283] - Certain covenants may be suspended if the notes achieve investment-grade ratings from two rating agencies[282] CEBURES – Long-Term Notes Cemex issued two series of sustainability-linked long-term notes (CEBURES) in Mexico with CO2 emissions reduction targets - Ps 1,000 million Long-Term Notes 1 (3-year tenor, floating rate) and Ps 5,000 million Long-Term Notes 2 (7-year tenor, fixed rate) were issued in October 2023[284][285] - Both CEBURES are sustainability-linked, with SPTs for CO2 emissions reduction, and include interest rate adjustments if targets are not met[284][285] - In February 2024, an additional Ps 2 billion of Long-Term Notes 1 and Ps 3.5 billion of Long-Term Notes 2 were reopened and placed[286] - As of March 31, 2025, the aggregate principal amount outstanding under the CEBURES was Ps 11,500 million[287] Subordinated Notes Cemex has $2.0 billion of subordinated notes with no fixed maturity, which are classified as equity under IFRS - Cemex has $1.0 billion of 5.125% Subordinated Notes (issued June 2021) and $1.0 billion of 9.125% Subordinated Notes (issued March 2023)[288][289] - These notes have no fixed maturity, are subordinated to senior obligations, and are classified in controlling interest stockholders' equity under IAS 32[6][262] - The 9.125% Subordinated Notes were aligned with the Green Financing Framework (GFF) for Eligible Green Projects[289] Our Other Financial Obligations As of March 31, 2025, Cemex's other financial obligations totaled $1,820 million, primarily consisting of lease liabilities and secured receivables Other Financial Obligations (Dec 31, 2024 vs. Mar 31, 2025) | Item | Dec 31, 2024 (Millions of Dollars) | Mar 31, 2025 (Millions of Dollars) | | :------------------------------------ | :--------------------------------- | :--------------------------------- | | Leases | $1,171 | $1,181 | | Liabilities secured with accounts receivable | 658 | 639 | | Total | $1,829 | $1,820 | Leases Cemex holds various assets under lease contracts, with total lease liabilities of $1,181 million as of March 31, 2025 - Cemex applies recognition exemption for short-term and low-value leases[256] Lease Liabilities (Dec 31, 2024 vs. Mar 31, 2025) | Lease Type | Dec 31, 2024 (Millions of Dollars) | Mar 31, 2025 (Millions of Dollars) | | :--------- | :--------------------------------- | :--------------------------------- | | Current | $269 | $279 | | Non-current| 902 | 902 | | Total | $1,171 | $1,181 | Our Receivables Financing Arrangements Cemex utilizes sustainability-linked securitization and factoring programs, with $639 million recognized as liabilities as of March 31, 2025 - Trade accounts receivable securitization programs are in place in Mexico, the U.S., France, and the UK[257] - As of March 31, 2025, $639 million in funded amounts from these programs were recognized as 'Other financial obligations' because full control of receivables was not surrendered[257] - These securitization programs are linked to the 2021 SLFFs, with potential annual fee payments based on sustainability metrics[410] Subordinated Notes (Equity Classification) Cemex's $2.0 billion of Subordinated Notes are classified within stockholders' equity due to their equity-like characteristics under IAS 32 - The $2,000 million aggregate principal amount of Subordinated Notes (5.125% and 9.125%) are classified in controlling interest stockholders' equity within 'Other equity reserves'[5][6][262] - This classification is based on IAS 32, as the notes do not meet the definition of financial liability due to no contractual obligation to deliver cash and the ability to defer interest indefinitely[6][262] - Coupon payments on the Subordinated Notes, amounting to $37 million for both Q1 2024 and Q1 2025, are included within 'Other equity reserves'[263] Stock Repurchase Program Shareholders approved a $500 million stock repurchase program for fiscal year 2025, but no repurchases were made in Q1 2025 - Shareholders approved a maximum of $500 million for stock repurchases for fiscal year 2025[265] - No CPOs were repurchased in Q1 2025 or during 2024 under the authorized repurchase programs[266] Trend Information Cemex is not aware of any undisclosed trends or events for Q1 2025 that are reasonably likely to have a material adverse effect on its financial condition - No material adverse trends, uncertainties, demands, commitments, or events are identified for Q1 2025 that are not already disclosed[267] Summary of Material Contractual Obligations and Commercial Commitments Credit Agreements Cemex's material credit agreements are sustainability-linked, guaranteed by Refinancing Guarantors, and feature financial covenants consistent with an investment-grade structure - The Amended 2021 Credit Agreement includes a $1 billion term loan and a $2 billion revolving credit facility, maturing in October 2028[269] - The Mexican Peso Banorte Agreement is a Ps 6.0 billion 5-year amortizing term loan, maturing in 2028[271] - The 2022 EUR Credit Agreement consists of a €450 million term loan (maturing April 2029) and a €300 million revolving facility (maturing April 2028)[275] - All credit agreements are sustainability-linked, guaranteed by Refinancing Guarantors, and have financial covenants consistent with an investment-grade capital structure[269][271][275] Notes Cemex's outstanding senior notes impose operating and financial restrictions, with certain covenants suspendable upon achieving investment-grade ratings - Outstanding notes include Euro-denominated (March 2026) and Dollar-denominated (November 2029, September 2030, July 2031) notes, and Mexican CEBURES[277] - These notes impose restrictions on debt incurrence, dividend payments, investments, and liens[277] - The CEBURES are sustainability-linked with specific CO2 emission reduction targets, and failure to meet them can result in financial adjustments[284][285] Subordinated Notes Cemex has $2.0 billion of subordinated notes with no fixed maturity and was in compliance with all payment obligations as of March 31, 2025 - Cemex has $1.0 billion of 5.125% Subordinated Notes and $1.0 billion of 9.125% Subordinated Notes, both with no fixed maturity[288][289] - The 9.125% Subordinated Notes were issued under the Green Financing Framework (GFF)[289] - As of March 31, 2025, Cemex was in compliance with all payment obligations under its Credit Agreements, Notes, and Subordinated Notes[290] Commercial Commitments Cemex has various commercial commitments, including service agreements with IBM and other IT providers, and forward purchase commitments for EU carbon allowances - Master Services Agreement with IBM for finance, accounting, and cybersecurity services, with cybersecurity ending June 2026 and finance/accounting ending December 2028[291] - Renewed or entered new agreements with six service providers for data processing and IT services, with tenures of five to seven years at an average annual cost of approximately $60 million[292] - Entered physically-settled forward purchase commitments for 1.8 million EU carbon allowances for 2029 and 2030, totaling $157 million[294] Cash Requirements As of March 31, 2025, Cemex's total cash requirements amounted to $12,299 million, with $2,171 million due within one year Total Cash Requirements as of March 31, 2025 | Item | Less than 1 year (Millions of Dollars) | 1-3 years (Millions of Dollars) | 3-5 years (Millions of Dollars) | More than 5 years (Millions of Dollars) | Total (Millions of Dollars) | | :-------------------------------------- | :------------------------------------- | :------------------------------ | :------------------------------ | :-------------------------------------- | :-------------------------- | | Non-current debt | $626 | $1,142 | $1,568 | $2,273 | $5,609 | | Leases | 318 | 451 | 274 | 478 | 1,521 | | Total debt and other financial obligations | 944 | 1,593 | 1,842 | 2,751 | 7,130 | | Interest payments on debt | 283 | 463 | 325 | 118 | 1,189 | | Pension plans and other benefits | 151 | 268 | 267 | 636 | 1,322 | | Acquisition of property, plant and equipment | 278 | 128 | — | — | 406 | | Purchases of services, raw material, fuel and energy | 515 | 793 | 417 | 527 | 2,252 | | Total cash requirements | $2,171 | $3,245 | $2,851 | $4,032 | $12,299 | - Total cash requirements as of March 31, 2025, were $12,299 million, with $2,171 million due within one year[297] Off-Balance Sheet Arrangements Cemex does not have any off-balance sheet arrangements that are reasonably likely to have a material effect on its financial condition or operating results - Cemex has no off-balance sheet arrangements likely to materially affect its financial condition, operating results, liquidity, or capital resources[298] Quantitative and Qualitative Market Disclosure Our Derivative Financial Instruments Cemex uses various derivative financial instruments to manage market risks, with an aggregate fair value net liability of $12 million as of March 31, 2025 Notional Amounts and Fair Values of Derivative Instruments (Dec 31, 2024 vs. Mar 31, 2025) | Derivative Type | Notional Amount (Dec 31, 2024) | Estimated Fair Value (Dec 31, 2024) | Notional Amount (Mar 31, 2025) | Estimated Fair Value (Mar 31, 2025) | Maturity Date | | :------------------------ | :----------------------------- | :---------------------------------- | :----------------------------- | :---------------------------------- | :------------ | | Net investment hedge | $713 | $63 | $1,041 | $25 | Mar 2027 | | Cross currency swaps | 658 | (100) | 658 | (83) | Sep 2030 | | Interest rate swaps | 600 | 14 | 600 | 8 | Feb 2030 | | Fuel price hedging | 356 | 6 | 312 | 6 | Dec 2026 | | Foreign exchange options | 650 | 41 | 605 | 32 | Mar 2027 | | Total | $2,977 | $24 | $3,216 | $(12) | | - Net losses from changes in fair values of derivative financial instruments were $16 million in Q1 2025, compared to $4 million in Q1 2024[302] - Cemex assumes creditworthiness risk of counterparties and evaluates them based on credit ratings and business relationships[318] Net Investment Hedge Cemex uses foreign exchange forward contracts and cross-currency swaps to hedge its net investments in Pesos and Euros - Dollar/Peso foreign exchange forward contracts ($500 million notional) and capped forwards ($279 million notional) hedge net investment in Pesos[303][304] - Cross-currency swap contracts ($262 million notional) hedge net investment in Euros[305] - Losses from these contracts in Q1 2025 ($16 million from forwards, $2 million from capped forwards, $4 million from cross-currency swaps) partially offset currency translation results in equity[303][304][305] Cross Currency Swaps Cemex uses cross-currency swap contracts to change the risk profile of its CEBURES from Peso to Dollar - Cross-currency swap contracts ($658 million notional) hedge CEBURES to change their risk profile from Peso to Dollar[308] - Changes in fair value for the interest rate leg are recognized in other equity reserves, then reclassified to financial expense[308] - In Q1 2025, these contracts generated $17 million in gains recognized in other comprehensive income[308] Interest Rate Swaps Cemex uses interest rate swaps as cash flow hedges to fix interest rate payments on its floating-rate debt - Interest rate swaps ($600 million notional) are used as cash flow hedges to fix interest rate payments on floating rate debt[310] - Fair value changes are initially recognized in other equity reserves and subsequently reclassified to financial expense[309] - In Q1 2025, these contracts generated $6 million in losses recognized in other equity reserves[310] Fuel Price Hedging Derivatives Cemex uses various contracts to hedge fuel prices for its own consumption and to mitigate diesel and petcoke cost exposure - Swap and option contracts ($121 million notional) hedge fuel prices (diesel, gas) for own consumption, designated as cash flow hedges[311] - Brent oil call spreads ($135 million notional) mitigate diesel cost exposure, and coal call spreads ($56 million notional) mitigate petcoke consumption exposure[312][313] - Fair value changes for Brent oil and coal call spreads are recognized directly in 'Financial income and other items, net'[312][314] Foreign Exchange Options Cemex held Dollar/Peso call spread option contracts to maintain the Dollar value of its Peso-generated revenue - Dollar/Peso call spread option contracts ($605 million notional) hedge the Dollar value of Peso-generated revenue[315] - Losses from these instruments in Q1 2025 ($7 million) were recognized in 'Financial income and other items, net', related to Peso appreciation[315] Other Derivative Financial Instruments Cemex acknowledges the risk of net losses and margin calls from derivative instruments and assumes counterparty creditworthiness risk - Cemex may incur net losses and be subject to substantial margin calls from derivative financial instruments, potentially reducing funds for operations[317] - The company assumes creditworthiness risk of counterparties and evaluates them before entering into derivative agreements[318] Interest Rate Risk, Foreign Currency Risk, and Equity Risk Cemex is exposed to interest rate, foreign currency, and equity risks, which it manages through natural hedges and derivative instruments - Cemex is exposed to credit risk, interest rate risk, foreign exchange risk, equity risk, commodities risk and liquidity risk[299] - Risk management framework includes obtaining natural hedges, risk diversification, and aligning debt currencies with cash flow generation[299][437] Interest Rate Risk. Cemex is exposed to interest rate volatility on its floating-rate debt, which constituted 33% of its long-term debt as of March 31, 2025 Non-Current Debt by Interest Rate Type (Mar 31, 2025) | Non-current debt | 2025 (Millions of Dollars) | 2026 (Millions of Dollars) | 2027 (Millions of Dollars) | 2028 (Millions of Dollars) | After 2029 (Millions of Dollars) | Total (Millions of Dollars) | Fair Value (Millions of Dollars) | | :--------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------------- | :-------------------------- | :------------------------------- | | Variable rate | 0 | 297 | 467 | 467 | 96 | 1,327 | 1,327 | | Average interest rate | — | 5.69% | 5.57% | 5.64% | 3.82% | | | | Fixed rate | 0 | 125 | 241 | 240 | 3,022 | 3,628 | 3,400 | | Average interest rate | — | 4.49% | 4.54% | 4.53% | 4.90% | | | - As of March 31, 2025, 33% of long-term debt bore floating rates at a weighted average interest rate of SOFR plus 98 basis points[321] - A 0.5% increase in interest rates would have reduced net income by $2 million in Q1 2025[321] Foreign Currency Risk. Cemex faces foreign currency risk due to its diverse geographic operations and primarily Dollar-denominated debt - Foreign currency exposure arises mainly from Dollar-denominated debt versus various local currencies where revenues are settled[323] - As of March 31, 2025, 66% of total debt plus other financial obligations was Dollar-denominated[323] - Cemex uses foreign exchange options ($605 million notional) to hedge the Dollar value of Peso-generated revenues[323] - Foreign currency risk also exists from translating subsidiaries' net assets (Peso, Euro, Pound Sterling) into Dollars, which is partially hedged by Dollar/Peso forward contracts[324] Equity Risk. Equity risk is managed through equity forward contracts, though Cemex held no such instruments as of March 31, 2025 - Equity risk is the risk of fair value fluctuations due to changes in market prices of Cemex's or third-party shares[325] - Cemex negotiated equity forward contracts on third-party shares to manage specific objectives[326] - As of March 31, 2025, Cemex did not have derivative financial instruments based on its own shares or any third-party shares[326] Liquidity Risk. Cemex faces liquidity risk but maintains significant available credit facilities to meet its obligations - Liquidity risk is the risk of not having sufficient funds to meet obligations, managed through operating cash flow, credit facilities, debt/equity offerings, and asset sales[328] - As of March 31, 2025, current liabilities ($1,544 million of current debt and other financial obligations) exceeded current assets by $966 million[329] - Cemex had $2,000 million and €300 million available in committed revolving credit tranches, plus $1,036 million under other uncommitted lines of credit[329] Investments, Acquisitions, and Divestitures Investments and Acquisitions There were no principal investments or acquisitions during the three-month period ended March 31, 2025 - No principal investments or acquisitions occurred in Q1 2025[331] Divestitures Cemex completed divestitures totaling $975 million in Q1 2025, including the sale of its operations in the Dominican Republic and Haiti - Total divestitures amounted to $975 million in Q1 2025, including $35 million in fixed assets[332] - The sale of operations in the Dominican Republic and Haiti on January 30, 2025, for $928 million, resulted in a $593 million gain on sale[333] Corporate Structure Cemex, S.A.B. de C.V. operates as both an operating and holding company, conducting business through subsidiaries globally - Cemex, S.A.B. de C.V. operates as an operating and holding company, primarily through subsidiaries in cement, aggregates, ready-mix concrete, and Urbanization Solutions[335] - The corporate structure chart provides a simplified view of major holding and operating companies and Cemex's approximate direct or indirect equity ownership as of March 31, 2025[335][336] Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Income This statement presents Cemex's unaudited consolidated income for Q1 2025 and Q1 2024, detailing revenues, costs, and net income Condensed Consolidated Statements of Income (Q1 2025 vs. Q1 2024) | | For the three-month periods ended March 31, 2025 (Millions of U.S. Dollars) | For the three-month periods ended March 31, 2024 (Millions of U.S. Dollars) | | :------------------------------------------ | :-------------------------------------------------------------------------- | :-------------------------------------------------------------------------- | | Revenues | $3,649 | $3,942 | | Cost of sales | (2,515) | (2,615) | | Gross profit | 1,134 | 1,327 | | Operating expenses | (842) | (906) | | Operating earnings before other expenses, net | 292 | 421 | | Other expenses, net | (46) | (19) | | Operating earnings | 246 | 402 | | Financial expense | (114) | (144) | | Financial income and other items, net | 38 | 5 | | Share of profit of equity accounted investees | 5 | 9 | | Earnings before income tax | 175 | 272 | | Income tax | (51) | (36) | | Net income from continuing operations | 124 | 236 | | Discontinued operations | 618 | 22 | | CONSOLIDATED NET INCOME | 742 | 258 | | Non-controlling interest net income | 8 | 4 | | CONTROLLING INTEREST NET INCOME | $734 | $254 | | Basic earnings per share | $0.0169 | $0.0059 | | Basic earnings per share from continuing operations | $0.0027 | $0.0054 | | Diluted earnings per share | $0.0166 | $0.0058 | | Diluted earnings per share from continuing operations | $0.0026 | $0.0053 | Condensed Consolidated Statements of Comprehensive Income This statement presents Cemex's unaudited consolidated comprehensive income for Q1 2025 and Q1 2024, including other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Q1 2025 vs. Q1 2024) | | For the three-month periods ended March 31, 2025 (Millions of U.S. Dollars) | For the three-month periods ended March 31, 2024 (Millions of U.S. Dollars) | | :---------------------------------------------------- | :-------------------------------------------------------------------------- | :-------------------------------------------------------------------------- | | CONSOLIDATED NET INCOME | $742 | $258 | | Items that will not be reclassified subsequently to the statement of income | | | | Effects from strategic equity investments | 4 | 1 | | Items that are or may be reclassified subsequently to the statement of income | | | | Results from derivative financial instruments designated as cash flow hedges | 9 | 33 | | Currency translation results of foreign subsidiaries | 149 | (166) | | Income tax benefit recognized directly in other comprehensive income | 3 | 11 | | Total items of other comprehensive income (loss), net | 165 | (121) | | CONSOLIDATED COMPREHENSIVE INCOME | 907 | 137 | | Non-controlling interest comprehensive loss | (5) | (3) | | CONTROLLING INTEREST COMPREHENSIVE INCOME | $912 | $140 | Condensed Consolidated Statements of Financial Position This statement presents Cemex's unaudited consolidated financial position as of March 31, 2025 and December 31, 2024 Condensed Consolidated Statements of Financial Position (Mar 31, 2025 vs. Dec 31, 2024) | ASSETS | As of March 31, 2025 (Millions of U.S. Dollars) | As of December 31, 2024 (Millions of U.S. Dollars) | | :------------------------------------------ | :---------------------------------------------- | :------------------------------------------------- | | CURREN