Benzinga - by Lekha Gupta, Benzinga Editor.
Cemex SAB de CV (NYSE: CX) reported a third-quarter (Q3) revenue increase of 9% Y/Y to $4.571 million, beating the consensus of $4.489 billion.
Results benefited from strong pricing across all markets, decelerating input cost inflation, contributions from growth investment strategy, and Urbanization Solutions business.
Volumes declined 4% Y/Y each in cement and ready-to-mix segments in Q3.
EBITDA rose 32% Y/Y to $910 million, with margins increasing 3.5ppt Y/Y to 19.9%.
Net Sales in the U.S. operations rose 5% Y/Y, while in South, Central America, and the Caribbean region surged 11% Y/Y.
Net Sales in Mexico increased 21% Y/Y, while Europe, the Middle East, Africa, and Asia region were up 2% Y/Y.
EPS of 9 cents missed the consensus of 23 cents.
Free cash flow after maintenance capex grew significantly by 160% Y/Y to $475 million on higher EBITDA and lower working capital spending.
As of Q3-end, cash and cash equivalents stood at $533 million and total debt of $7.492 million.
"Importantly, we are making significant progress on our decarbonization roadmap, reducing Scope 1 and Scope 2 carbon emissions by 12% and 11%, respectively, since 2020," said CEO Fernando A. González. "Prior to the introduction of our Future in Action program in 2020, a reduction of this magnitude would have taken almost 15 years.”
FY23 Outlook: CX now expects operating EBITDA of >$3.3 billion (vs. $3.25 billion), energy cost/ton of cement produced to grow ~10%, and capital expenditures of ~$1.35 billion (vs. ~$1.25 billion earlier).
Price Action: CX shares are trading higher by 3.33% at $6.20 on the last check Thursday.
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