CEMEX, S.A.B. de C.V. Q3 FY2024 earnings call

• Significant progress in portfolio optimization with $1.4 billion in asset sales in Q3, year-to-date divestitures total $2.2 billion; 90% of EBITDA to be generated in U.S., Europe, and Mexico. - Growth strategy contributed 13% of EBITDA. - Weather events (hurricanes, precipitation) and transportation strike impacted results. - Net income grew over 200% year-over-year. - Climate action: reduced Scope 1 and 2 CO2 emissions; CEMEX-led CCUS project in Germany selected for EU funding. - Acquired majority stake in a German recycling company for circularity focus.

The Organization Solutions business saw EBITDA margin rise 1.6 percentage points, with admixtures and mortars contributing strongly across regions. Circularity, the fastest-growing business, had growth in construction, demolition, and excavation materials in the U.S. and Europe. Aggregates in the U.S. is the largest contributor to profitability, accounting for 36% of EBITDA with margins over 30%. EMEA EBITDA was stable year-over-year with volume growth in Europe. SCAC experienced challenging volumes due to hurricanes and a transportation strike, impacting EBITDA.

• Adjusted full year EBITDA guidance to low single-digit percentage decrease, primarily due to weather and Mexican peso FX. - Reduced CapEx guidance by $100 million to $1.5 billion. - Reduced cash taxes guidance by $100 million to $900 million.

• Temporary factors like extraordinary weather conditions and transportation strikes impacted results. - Volume shortfalls due to weather and demand slowdowns. - Mexican peso devaluation was a headwind to EBITDA.

Q: Gordon Lee asked about volume shortfall and backlog confidence in weather-driven impact.

A: Maher and Lucy discussed weather impact in Mexico and U.S., base effect comparison, and backlog performance.

Q: Paco Chávez asked about Mexico's margin drop and electricity costs, and pricing feasibility.

A: Maher explained electricity cost increase due to migrating to wholesale market, expected reversal in 2025, and pricing strategy.

Q: Anne Milne asked about aggregates business growth.

A: Maher said aggregates in U.S. is key, with potential for similar growth in other regions.

Q: Adrian Huerta asked about capital allocation from asset sales.

A: Maher discussed $3 billion investment pipeline, current investment and EBITDA contribution, and capital allocation to growth, deleveraging, and shareholder returns.

Q: Paul Roger asked about energy cost guidance.

A: Maher explained energy cost decline in most markets, hedging positions for 2025.

Q: Adam Thalhimer asked about primary US listing.

A: Maher said evaluating strategies to maximize shareholder value but no speculation on specific strategies.

Q: Jorel Guilloty asked about Mexican president's housing proposals impact.

A: Lucy discussed positive impact on formal residential construction and 2025 outlook.