Cemex (NYSE:CX) reported third-quarter 2026 results marked by higher sales, expanding profitability and stronger cash generation, as the building materials company said its Project Cutting Edge transformation program continued to produce savings and operational improvements.
Chief Executive Officer Jaime Muguiro said consolidated net sales increased about 8% year over year, supported by higher prices and improving cement-volume trends in most markets. EBITDA rose 12% to $990 million, while EBIT increased 19%. EBITDA margin expanded by 80 basis points, according to Chief Financial Officer Maher Al-Haffar.
“Our results once again reflect the benefits of our transformation, translating into stronger profitability and cash generation,” Muguiro said. The company said EBITDA and EBIT have now posted double-digit growth for five consecutive quarters.
Cash Flow, Savings and Leverage
Free cash flow from operations totaled $723 million in the quarter, up 34% from a year earlier. Year-to-date free cash flow from operations nearly tripled to $1.4 billion, with more than half of the increase attributable to EBITDA growth, Al-Haffar said. The remainder reflected lower maintenance capital expenditures, net interest expense and other cash outlays, lower working-capital investment, and higher fixed-asset sales.
On an adjusted trailing 12-month basis, free cash flow from operations reached a record $2.2 billion, with a conversion rate of about 62%. The company said its conversion rate, excluding severance payments and discontinued operations, was up 16 percentage points from a year earlier.
Project Cutting Edge contributed about $60 million in incremental savings during the quarter, including $20 million initially expected in the fourth quarter or later. Cemex said it has achieved 80% of its $475 million cost-savings target, with the remaining $95 million primarily expected to benefit 2027 results.
The company also reduced total debt plus subordinated notes by $1.7 billion since December and cut net debt plus subordinated notes by about $535 million. Net financial leverage ended the quarter at 1.8 times, which Al-Haffar said was already within Cemex’s medium-term target.
Pricing, Costs and 2027 Outlook
Consolidated cement volumes increased 3% year over year, while prices across the company’s three main product categories rose by a low-single-digit percentage. Pricing was the largest contributor to EBITDA growth, helping offset higher maintenance and distribution costs.
Management said total costs increased year over year for the first time in six quarters, reflecting a pickup in inflation. Still, year-to-date energy costs per ton of cement produced declined 2%, aided by lower alternative-fuel costs, fuel diversification, long-term contracts, hedging, lower clinker factors and energy-efficiency measures.
Alternative fuels represented about 28% of Cemex’s fuel mix. The company’s diesel hedging program generated $82 million in gains year to date, offsetting transportation and diesel-cost increases. For 2027, Cemex said about 80% of its direct diesel consumption is hedged, while roughly 60% of European electricity needs have been contracted at fixed prices that are 4% above 2026 levels.
Muguiro said the company expects mid- to high-single-digit energy inflation in 2027 and plans to seek solid mid-single-digit price increases across products to protect margins. He said the company views its 2026 margin performance as structural, describing the 21% EBITDA margin target presented at its investor day as “the floor.”
Cemex reaffirmed its guidance for full-year EBITDA growth of 16% to 17%, based on an assumed Mexican peso exchange rate of 18.25 to 18.50 in the fourth quarter. Management cited normal seasonal volume declines, about $18 million in higher maintenance costs, and roughly $17 million in higher energy costs as expected fourth-quarter headwinds.
Regional Trends
Mexico remained a major contributor to growth, as recovering cement demand, residential construction and government-backed social housing and rural-road programs supported volumes. The company said ready-mix demand continued to lag cement demand, though its contracted ready-mix volumes tied to infrastructure projects rose materially. Cemex expects its Mexican ready-mix order book to support volumes in 2027.
In the U.S., cement and aggregate volumes rose 4%, while ready-mix volumes declined 1%. Cement growth was aided by the Omega acquisition and project activity, but EBITDA and margins were affected by an unplanned outage at the Brooksville plant, higher raw-material inflation and lower cement prices. The company said demand remained led by infrastructure and industrial projects, including data centers, semiconductor facilities and manufacturing.
AI-related projects represented a high-single-digit percentage of Cemex’s U.S. ready-mix volumes year to date, more than double its full-year 2025 volume in that segment. However, management said U.S. residential construction remains constrained by affordability and inventory levels and is not expected to contribute meaningfully to 2027 growth.
EMEA EBITDA increased 4%, supported by pricing and Project Cutting Edge efficiencies, despite higher energy costs. European volumes were affected by heat waves, infrastructure-project delays and a fragile construction recovery. In South, Central America and the Caribbean, results were pressured by higher cement purchases in Jamaica and higher regional energy costs, although cement demand remained solid in Colombia and Jamaica.
Asset Sales and Capital Allocation
Cemex continued to prune assets that do not meet its return criteria. During the quarter, it divested ready-mix assets in Atlanta while retaining long-term cement and admixture supply agreements, and it began exclusive negotiations with Vicat Group for the proposed sale of certain ready-mix and aggregate assets in southeastern France.
Completed and announced transactions since the initiative began include more than 140 facilities and more than $200 million in estimated cash proceeds. Cemex estimates asset pruning could eventually generate $100 million to $150 million in incremental recurring free cash flow.
The previously announced sale of some Colombian operating assets has not yet closed and will remain fully consolidated until completion. Muguiro said the Colombia transaction with Holcim is expected around the second quarter of 2027 and is expected to generate about $485 million, with additional Colombian energy-business and land sales expected to provide at least $70 million.
On shareholder returns, Muguiro said Cemex had completed $100 million in share repurchases and still plans to buy back up to $500 million in shares through 2028, while balancing buybacks against debt reduction and growth investments.
About Cemex (NYSE:CX)
Cemex, SAB. de C.V. is a global building materials company headquartered in San Pedro Garza García, Mexico. The company produces and markets cement, ready-mix concrete, aggregates and related construction materials used in residential, commercial and infrastructure projects.
Cemex also provides construction solutions and services, including materials distribution, logistics and digital tools designed to support contractors, builders and other customers. Its products serve a broad range of applications, from housing and commercial development to roads, bridges, airports and other major infrastructure.
Founded in Mexico in 1906, Cemex has expanded through organic growth and acquisitions into an international business serving customers across the Americas, Europe, Africa, the Middle East and Asia.
-logo-1200x675.png){kind=logo}
