Cemex held its 2026 Analyst Day today, where senior management provided an update on the company’s transformation, capital allocation priorities and medium-term financial targets. Management reviewed progress under Project Cutting Edge, including ongoing structural cost initiatives, as well as the initial results and identified opportunities arising from business performance reviews.
Under its Sprint framework, in 2026 and 2027 Cemex expects sales and EBITDA to grow annually by approximately five per cent and 10 per cent, respectively. This performance is expected to be driven largely by self-help measures and conservative assumptions underpinning organic growth. The Free Cash Flow from Operations to EBITDA conversion rate is expected to reach 47 per cent by 2027, close to the company’s target of 50 per cent.
Delivering on its commitment to boost shareholder returns, a cash dividend of US$180 million is being proposed for Cemex’s upcoming Ordinary General Shareholders’ Meeting, approximately 40 per cent larger than the prior year’s dividend. In addition, the company has announced its intention, subject to applicable legal formalities, to repurchase up to US$500 million in shares over the next three years. As of today, Cemex has repurchased shares equivalent to approximately US$100m.
“We are undergoing a profound transformation with the objective of achieving best-in-class operational excellence and shareholder returns. This transformation is supported by a disciplined capital allocation framework,” said Jaime Muguiro, Chief Executive Officer of Cemex. “Our focus for bolt-on M&A remains primarily in the US in highly synergetic businesses such as aggregates and mortars.”
Consistent with Cemex’s growth strategy, the company also announced that it has reached an agreement to acquire Omega Products International, a leading stucco manufacturer in the western United States that generates approximately US$23 million in EBITDA per year and offers significant synergies with Cemex’s US business.
