CEMEX — Cement & Construction Cycle

CEMEX is one of the world's largest cement producers — operating in 50+ countries with annual cement capacity exceeding 90 million tonnes. Founded in Mexico, CEMEX has grown through aggressive global acquisitions (RMC Group in UK/Europe, Rinker in Australia/US, Holcim US assets) into a truly global building materials company. The United States — CEMEX's largest and most profitable market — drives the majority of earnings, making US construction cycles the primary signal.

US Market: The Profit Engine

CEMEX's US operations — producing cement, ready-mix concrete and aggregates across 26 states — generate the majority of group EBITDA despite representing approximately 30% of volumes. US cement pricing is structurally superior to most markets globally, protected by import freight economics and regional market consolidation. US infrastructure investment (IIJA — $1.2T over 10 years) provides exceptional multi-year demand visibility for CEMEX's US business.

Mexico: The Home Market Resilience

CEMEX's Mexican operations benefit from proximity to the home market, established brand recognition and relatively stable infrastructure demand from government spending programmes. Mexico's nearshoring boom — US companies relocating supply chains to Mexico — is driving industrial construction demand that directly benefits CEMEX's Mexican cement and concrete operations.

Europe and Emerging Markets: The Portfolio

CEMEX operates in the UK, Germany, France, Spain and Poland in Europe, plus significant emerging market operations in the Philippines, Egypt, Colombia and other countries. European operations face structural challenges from high energy costs and weak housing demand. Emerging market operations provide volume growth at lower margins.

Urbanisation: The Long-Run Demand

CEMEX's global footprint positions it to capture urbanisation-driven cement demand in growing economies. Infrastructure investment in roads, housing and utilities in CEMEX's emerging market geographies provides secular demand growth beyond cyclical construction swings.

Key Risks

CEMEX carries significant financial leverage from its aggressive acquisition history — net debt has historically exceeded 3x EBITDA, amplifying earnings cycle volatility. Mexican peso and other EM currency depreciation reduces USD value of non-US earnings. Energy costs (coal, petcoke for kiln firing) are the dominant variable cost. Competition from regional cement producers limits pricing power in non-US markets.

Cycle Performance Summary