Cemex Posts 38% Q2 Profit Rise Despite Lower Sales

Mexican building materials company Cemex reported a 38% increase in second-quarter net profit to $318 million in 2025 despite a 5% decline in sales and an 11% drop in EBITDA, driven by volume decreases in Mexico and the U.S. due to factors like heavy rains and a slowdown in public infrastructure projects. The company's strong performance in Europe, the Middle East, and Africa helped offset these regional weaknesses, contributing to a resilient consolidated EBITDA margin of around 20%. Cemex has accelerated its cost-saving program under CEO Jaime Muguiro, including workforce reductions and logistics efficiencies, raising its 2025 EBITDA savings target from $150 million to $200 million, with a forecast for flat or slightly higher full-year EBITDA. The strategic initiative Project Cutting Edge, aiming for substantial incremental EBITDA growth by 2027, underpins Cemex's transformation through supply chain optimization and overhead reductions, supporting operational discipline and improved free cash flow. Despite current challenges, Cemex expects volume improvements in the second half of 2025 as the Mexican government advances infrastructure and social housing projects. Analysts view Cemex as a stable investment with mixed financial momentum, highlighting its strong technical position and attractive valuation amid ongoing strategic initiatives.