Titan Group reported strong sales in 1Q25. Thanks to firm pricing and sustained cement volumes and growth in core products in the US and southern European markets, sales rose by 2.4 per cent at EUR638.4m.

EBITDA growth rose 11.7 per cent to EUR122.6m while profits before tax grew by 2.9 per cent to EUR66.6m. The 75 per cent divestment of Adocim in eastern Türkiye is expected in the summer of 2025.

The group's downstream products of aggregates grew by 18 per cent and ready-mix by six per cent, while cement sales were resilient but remained flat year-on-year (YoY).

Regional performance
USA
In the 1Q25, volumes of cement and ready-mix were affected by adverse weather. Aggregates sales rose, supported by investment in added capacity in Florida. Sales amounted to EUR372.5m up 0.5 per cent from EUR370.6m in the 1Q24.

Greece and Western Europe
Sales totalled EUR124.9m, up 15.9 per cent from 1Q24 at EUR107.8m. Export sales to Western Europe remained stable, while US sales saw lower demand. Thermal substitution rates at both the Athens plant, with its new precalciner operating at full capacity, and the Thessaloniki plant, following similar investment, continued to increase. The new biomass plant at the Patras cement factory also performed well. Meanwhile, operations at the Yali pozzolan quarry have enabled the company to switch all bulk and bagged cement destined for the Greek market to lower CO2 CEMIV cement, a product with less than 55 per cent clinker-to-cement ratio.

Southeastern Europe
Southeastern Europe recorded sales of EUR82.6m for the period, down nine per cent on the 1Q25 at EUR90.7m.The group's investments in alternative fuel usage saw rates increasing in Bulgaria, after its annual maintenance and doubling usage in North Macedonia with new alternative fuel investments in Kosovo and Serbia underway.

Eastern Mediterranean
In Egypt, after a subdued market in the 1Q24, this year saw 1Q25 sales recover domestic demand to better levels thanks to private projects, while exports grew. In Turkey, cement volumes declined both Marmara and Tokat, while exports also fell. Despite these declines profitability rose, so sales amounted to EUR58.4m up 6.9 per cent from 1Q24 at EUR54.6m. 

Brazil (joint venture)
Domestic cement consumption increased by six per cent in the 1Q25. Real estate expanded, fuelled by the resumption of construction work under the extensive affordable housing programme and prices increased. EBITDA rose by 42 per cent to EUR6m.

Outlook
Titan reports that the global economies are in a state of flux following the broad US tariff hikes, while global GDP is now limited by the IMF's forecast to around 2.8 per cent in 2025. Titan expects continued moderation in residential activity, while steady demand from infrastructure spending and selective strength in commercial segments is expected throughout 2025.

Meanwhile the Greek economy is projected to expand by around 2.3 per cent this year, while the European Commission forecasts investment growth nearing nine per cent in 2025.

Southeastern Europe will see infrastructure development, notably for Expo 2027 and energy projects are positioning Serbia as a regional construction hub. Albania is buoyed by tourism and the development of urban regeneration projects.

Egypt still faces economic challenges but as an export hub it is in a favourable position.