Mexico's Cemex Reports Double-Digit Profit Rise in Q2 2025

Cemex, a Mexican cement company, reported a double-digit profit rise in Q2 2025 as its restructuring efforts began to take effect. The company's net profit increased, while sales declined. Cemex's Q2 earnings rose, beating analyst expectations. The company's shares jumped as a result of a successful asset sale in the Dominican Republic.

Mexican cement giant Cemex (CEMEX/A) reported a 38% increase in second-quarter profit, reaching $318 million, according to a press release [2]. Despite a 5% dip in sales to $4.13 billion, the company's restructuring efforts under new CEO Jaime Muguiro began to show positive results. The quarterly report marked the first under Muguiro, who previously led Cemex's U.S. operations.

Cemex's core earnings, measured by EBITDA, dropped 11% to $823 million, but the company managed to beat analyst expectations. The results were largely in line with estimates from analysts polled by LSEG. Operating expenses decreased by 3%, primarily due to lower spending in logistics and distribution.

The company attributed the decline in sales to fewer volumes in its top markets, Mexico and the United States. Record rainfall and a slowdown in public infrastructure projects in Mexico, and heavy rains and a subtle residential construction sector in the U.S., contributed to the downturn. However, volumes in the Middle East and Africa surged due to new housing and infrastructure projects.

Cemex's workforce shrank by 5% year-over-year to around 43,000 employees, with Muguiro noting that "difficult decisions" had been taken in the quarter. The company expects a $200 million boost to its EBITDA this year from cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it sees potential for the metric to come in slightly higher.

By 2027, the spending cuts are expected to total $400 million, with layoffs alone contributing $200 million in annual savings. The company's shares jumped as a result of a successful asset sale in the Dominican Republic, further boosting investor confidence.

References:

[1] Reuters. (2025). Mexico's Cemex posts double-digit profit rise as restructuring kicks in. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_S0N3SX00U:0-mexico-s-cemex-posts-double-digit-profit-rise-as-restructuring-kicks-in/

[2] Seeking Alpha. (2025). Cemex Q2 GAAP EPADS of $0.23 beats by $0.05. Revenue of $4.13B (-5.3% Y/Y) misses by $60M. Retrieved from https://seekingalpha.com/news/4471358-cemex-gaap-epads-of-023-beats-by-005-revenue-of-413b-misses-by-60m