Cemex expects volume growth amid pricing gains and cost pressures

Mexican building materials producer Cemex expects low- to mid-single-digit volume growth across cement, ready-mix and aggregates in 2026, buoyed by a pricing strategy designed to offset inflationary pressures and operational improvements that are cushioning the impact of geopolitical uncertainty, the company said in its earnings release and presentation April 23.

The company reported that operations in Israel and the UAE have largely normalized following the onset of the Iran war, though it warned of rising cost headwinds from higher maritime freight rates, tariffs and supply-chain disruption.

"Energy strategy limits exposure to market volatility, with hedges in place for 2026 and flexibility to diversify fuel mix," the company said in its investor presentation April 23. "In the current global context with rising maritime freight rates, tariffs, supply chain disruptions and increasing energy and logistics costs, expect progressively stronger pricing support in the US as the year unfolds. While the duration of war is uncertain, we believe we are well-positioned to address potential risks and expect to deliver FY 2026 EBITDA guidance."

Cemex reported a 3% increase in first-quarter 2026 net sales on a like-to-like basis, as cement volume recovery in Mexico and disciplined pricing across regions offset adverse weather impacts in the US and Europe.

Mexico delivered strong sales growth supported by continued cement volume recovery, operational efficiencies and pricing gains. The region's performance marked a key driver of the company's overall top-line results as domestic construction activity strengthened. The company reported the first year-over-year cement volume growth since mid-2024, supported by self-construction and government-backed social programs, while prices went up 5% sequentially.

"[In Mexico] activity in infrastructure, while still soft, is improving, with ready-mix backlog trending higher," the company said in its Q1 investor presentation.

The US showed resilience despite adverse weather conditions that typically dampen construction activity in the first quarter. The region posted growth in ready-mix and aggregates volumes, though cement sales faced headwinds from weather disruptions. The company's diversified product portfolio helped cushion the impact of weather-related volume pressure.

In its South, Central America and Caribbean segment prices were up 5% and medium-term outlook remained positive supported by improving customer sentiment and informal construction, the company said

In EMEA, the start of the Carbon Border Adjustment Mechanism (CBAM) and the phase-out of free EU ETS allowances were supporting cement pricing, up 4% sequentially, the company reported.

"I am very pleased with our first quarter results, which reflect the ongoing benefits of our transformation and a structurally stronger Cemex with a more resilient earnings profile," said Jaime Muguiro, CEO of Cemex. "Despite the uncertain global backdrop, our self-help measures under Project Cutting Edge that we have put into place coupled with strong first quarter results, give me confidence on our full year high-single-digit EBITDA growth guidance."