GCC reported a decline in 3Q revenue and earnings as weaker US volumes and prices outweighed growth in Mexico, while a tax correction relating to prior years further reduced net profit.

The cement and construction materials producer’s revenue fell 1.2 per cent YoY to US$433.1m in the July-September 2026 period. EBITDA declined 5.8 per cent to US$148.4m, with the margin narrowing by 1.6 percentage points to 34.3 per cent. Net income dropped 41.6 per cent to US$59m.

GCC’s CEO, Enrique Escalante, attributed the quarter’s performance to short-term weather disruption, saying underlying demand across GCC’s key markets remained healthy and YtD cement volumes continued to grow.

Group profitability was pressured by higher production expenses, acquisition-related costs, transfer freight and lower US cement prices. Selling and administrative expenses rose 13.6 per cent. A tax correction relating to prior years in Mexico increased both financial expenses and income taxes, contributing to the sharper decline in net income.

Free cash flow, measured before growth and strategic capital expenditure, fell 8.7 per cent to US$121.1m, equivalent to 81.6 per cent of EBITDA. GCC ended September with US$887.7m in cash and US$630m in debt, maintaining a net cash position.

Geographical markets
In the USA, revenue declined 4.7 per cent to US$327.7m, accounting for 76 per cent of consolidated sales. Concrete volumes fell 18.6 per cent, while cement volumes slipped 0.5 per cent. Cement and concrete prices decreased 2.8 per cent and 2.2 per cent, respectively. Infrastructure was the country’s most dynamic market segment during the quarter.

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Despite the quarterly weakness, US sales remained 6.2 per cent higher over the first nine months of the year. GCC also began selling output from its new Odessa production line and completed a US$13.3m acquisition of concrete operations in the Midland-Odessa region.

Meanwhile Mexico delivered stronger results, with revenue rising 11.5 per cent to US$105.4m, or 24 per cent of group sales. Cement volumes increased 4.7 per cent, supported by retail and infrastructure demand, while local-currency cement and concrete prices rose 3.2 per cent and 2.7 per cent, respectively. These gains were partially offset by a 7.8 per cent decline in concrete volumes. Mexican revenue increased 18.6 per cent over the first nine months.

January-September 2026
For the first nine months of 2026, consolidated revenue rose 9.3 per cent and EBITDA increased 5.5 per cent. GCC’s revised full-year outlook forecasts low-single-digit EBITDA growth, free cash flow conversion above 60 per cent and capital expenditure of US$220m.

In terms of the company’s geographical markets in the first nine months of 2026, US revenue increased 6.2 per cent YoY to US$832.6m. Cement volumes rose six per cent and concrete volumes increased 1.7 per cent, while concrete prices gained 4.1 per cent. These improvements were partially offset by a 2.8 per cent decline in cement prices. The US business generated 76 per cent of GCC’s consolidated EBITDA during the period.

Mexico’s 9M revenue rose 18.6 per cent to US$314.4m, supported by a 7.7 per cent increase in cement volumes. Concrete and cement prices increased 4.6 per cent and 0.9 per cent, respectively, in local currency, although concrete volumes declined 1.0 per cent. The appreciation of the Mexican peso against the US dollar also supported reported revenue growth. Mexico accounted for 24 per cent of consolidated EBITDA.