Cemex S.A.B. De C.V. - ADR

Strong Q3 performance + “structural” improvement trend - Net sales ~+8% YoY, driven by higher consolidated prices and improving cement volumes across most markets. - EBITDA +12% YoY and EBIT +19% YoY (5th consecutive quarter of double-digit EBITDA/EBIT growth), with margin expansion supported by transformation efficiencies. - Key cash metric: Adj. trailing 12-month free cash flow from operations conversion ~60% (2nd consecutive quarter hitting ~60%); CFO also highlighted stronger acceleration in free cash flow.

Free cash flow and balance sheet: improving leverage, but CapEx still a work in progress - FCF from operations (quarter): $723m, +34% YoY; YTD: ~$1.4bn vs prior year (nearly tripled). - Trailing 12-month conversion rate ~62% (+16pp YoY) (excluding severance and discontinued ops). - Debt reduction: since December, total debt + sub. notes -$1.7bn and net debt + sub. notes -~$535m; net financial leverage ~1.8x, within midterm target. - Management positioned working capital as largely structural (avg working capital days ~ -9 vs -10), and said they still aim for only incremental working capital investment $50–$100m for the full year.

Transformation (“Project Cutting Edge”) delivering cost savings + asset pruning benefits - Project Cutting Edge estimated ~$60m incremental savings in Q3; recurring savings achieved this quarter $60m, and 80% of the $475m cost savings target is now done (~$95m remaining, mainly benefiting 2027). - Asset pruning: divestitures in US (Atlanta ready mix assets deconsolidated as of Sep 30) and progress on Europe/France (exclusive talks for Southeast France ready mix/aggregates). - Since launch, cash proceeds (completed + announced) >$200m, involving 140+ facilities; management expects the initiative could add $100m–$150m incremental recurring free cash flow (benefiting more from 2027 onward). - Decarbonization: YTD gross CO₂ emissions -1%, mainly from a lower clinker factor (Europe also cited -2% YTD in its own footprint).