Gcc Sab De Cv · BMV:GCC
Gcc Sab De Cv — Q2 2025 Earnings Presentation
28 slides from Gcc Sab De Cv's earnings presentation, Jul 23, 2025
Slide 1: Q2 2025 Earnings Conference Call
Q2 2025 EARNINGS CONFERENCE CALL ENRIQUE ESCALANTE, CEO MAIK STRECKER, CFO JULY 23, 2025
Slide 2: Safe Harbor Statement
This presentation has been prepared by GCC, S.A.B. de C.V. (together with other results to be materially different from the results expressed or its subsidiaries, “GCC”). Nothing within this presentation is intended to be implied by said projections. taken by any person as investment advice, a recom
Slide 3: Highlights
HIGHLIGHTS 1% Consolidated sales • Persistent inflationary pressure • Evolving trade dynamics • Depreciation of the Mexican peso 7.7% U.S. sales • GCC continued to execute with discipline Relying on operational agility, discipline execution, and long- term strategic focus 3
Slide 4: Q2 2024 EBITDA like-to-like
Q2 2024 Unscheduled outages US$4 million at the Odessa and Set a high benchmark adjustment in Rapid City plants with record margins natural gas costs Included several one-off benefits and timing effects Higher proportion of lower-margin real 1.5% estate sales for EBITDA like-to-like development 4
Slide 5: Company-wide cost and expense optimization program
Company-wide cost and expense optimization program • Adjust the cost structure US$5 million Committed to a already realized • Improve internal efficiency US$12 million expense reduction • Protect margins • Targeted actions across operations, logistics, and support functions US$7 million on track for
Slide 6: People: GCC Training Institute
GCC Training Institute • 13 technical courses completed YTD PEOPLE • 19 additional sessions currently underway • Several courses led by former employees • Transfer valuable operational knowledge to the next generation 6
Slide 7: People: Commitment to a World-class Safety Culture
PEOPLE Commitment to a World-class Safety Culture • 37% reduction in recordable incidents in H1 Ranked • Partnered with Wolters Kluwer – Enablon software platform #26 • Specialized in H&S, sustainability and environmental in the Great Place management to Work survey in Mexico • Standardize processes
Slide 8: Planet: Clean fuel usage and blended cements
Greater alternative Increased clean fuel usage fuel substitution 78% Blended cements PLANET of total cement sales 3.5ppt Increased share of blended cements Higher natural gas consumption 8
Slide 9: Planet: Clinker factor and emissions
PLANET 1 ppt Clinker factor 2024 Highlights the Advancing research INTEGRATED broader ESG into the use of priorities and REPORT calcined clays strategy 3.7% Scope 1 CO2 gross emissions 9
Slide 10: U.S. Overview
U.S. OVERVIEW • Growth driven by renewable energy projects • Ready-mix operations ran at capacity 75% of sales • Currently supplying 5 windfarm projects • More scheduled later this year • Infrastructure demand remains solid • Began Phase 2 of the I-10 project in El Paso Q2 25 vs. Q2 24 H1 25 vs. H1
Slide 11: U.S. Overview
U.S. OVERVIEW Residential segment under pressure Oil and gas softened demand • Elevated housing inventory nationwide • Declining rig counts and pressure on oil prices • Home affordability continues to decline • Unplanned outage at the Odessa plant led some customers to source from competitors • 30-y
Slide 12: U.S. Overview: Rapid City cement plant disruption
Temporary disruption at the Rapid City cement plant U.S. OVERVIEW • The plant was offline for half of the quarter • Redirected supply from the Pueblo and Trident plants • Ensure uninterrupted service to customers in the region • Reduced production volumes put pressure on margins 12 12
Slide 13: Mexico Overview
MEXICO OVERVIEW • Market conditions remained challenging 25% of sales • Softness in industrial demand and adverse weather • Industrial developers remain cautious • Mining segment remains muted • Residential demand remained strong • Federal housing initiative Q2 25 vs. Q2 24 H1 25 vs. H1 24 • Infrast
Slide 14: Capital Allocation
New cement distribution terminal • Located in Trenton, Texas • Addresses growing customer demand CAPITAL • Strengthens GCC’s ability to serve a dynamic market ALLOCATION • Operations began the first week of July • Cement initially supplied from the Samalayuca plant Odessa cement plant expansion • Fu
Slide 15: Financial Results
FINANCIAL RESULTS MAIK STRECKER, CFO
Slide 16: Consolidated Net Sales
CONSOLIDATED NET SALES -3.6% Q2 25 vs. Q2 24 H1 25 vs. H1 24 633 610 Volumes Prices* Volumes Prices* +1% 207 170 Cement United States 4.2% 0.6% 0.7% 1.6% 360 364 108 92 Mexico -6.2% 4.2% -9.2% 4.7% 426 440 Concrete 253 272 United States 20.7% 9.5% 15.4% 10.6% Mexico -13.1% 3.0% -12.9% 3.0% Q2 24 Q2
Slide 17: Cost of Sales
COST OF SALES % of sales • Lower production volumes: 60.9% 66.7% 63.5% 67.7% • Timing of plant maintenance + 580 BPS + 420 BPS • Rapid City incident • Absence of the natural gas hedge benefit • Higher transfer freight expenses 413 402 • Greater share of real estate sales 243 220 • Increased fuel pri
Slide 18: SG&A and EBITDA
SG&A EBITDA % of sales EBITDA margin 8.7% 8.3% 10.1% 9.5% 37.1% 32.5% 34.2% 31.4% - 50 BPS - 50 BPS - 460 BPS - 280 BPS -11.5% -11.6% 64 58 217 192 32 30 134 118 Q2 24 Q2 25 H1 24 H1 25 Q2 24 Q2 25 H1 24 H1 25 (US$ Million) (US$ Million) 18
Slide 19: Net Financial Income and Net Income
NET FINANCIAL US$8.5M US$15.2M INCOME (44.1%) Q2 2025 Q2 2024 NET INCOME (18%) Net income as % of sales Q2 24 90 EPS = US$0.2738 24.9% - 4.7 PPT Q2 25 74 EPS = US$0.2242 20.2% (US$ Million) H1 24 139 EPS = US$0.4235 21.9% - 3.2 PPT H1 25 114 EPS = US$0.3480 18.7% (US$ Million) 19
Slide 20: Free Cash Flow
FREE CASH FLOW US$ million 2 41.1% Cash conversion rate (33) (21) 118 (5) (13) 49 EBITDA Interest income Working capital Taxes Accruals Maintenance Free cash flow Q2 25 increase and others CapEx Q2 25 20
Slide 21: Net Leverage Ratio and Cash
US$30M dividend payment NET LEVERAGE RATIO Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 US$88M strategic investments -0.48x -0.56x -0.67x -0.78x -0.81x US$827M cash and equivalents 21
Slide 22: Confident in ability to manage pressures and build long-term value
Remain confident in GCC’s ability to manage pressures and build long-term value Laser-focused on operational efficiencies, cost optimization and disciplined capital deployment 22
Slide 23: Guidance
United States Consolidated Volumes EBITDA growth Mid-single digit decrease Cement Flat FCF Conversion Rate > 60% 2025 Prices Concrete Mid-teens digits increase Total CapEx US$400M GUIDANCE Cement Flat Strategic & growth US$330M Maintenance US$70M Concrete Mid-single digit increase Mexico Net Debt/EB
Slide 24: Questions
QUESTIONS CONTACT: Maik Strecker, Chief Financial and Planning Officer mstrecker@gcc.com WWW.GCC.COM Sahory Ogushi, Head of Investor Relations soguship@gcc.com +52 (614) 442 3176 + 1 (303) 739 5943 2 4
Slide 25: Appendix
APPENDIX &}ccc
Slide 26: Income Statement
INCOME STATEMENT US$ million Q2 25 Q2 24 Var H1 25 H1 24 Var Net sales 363.9 360.3 1.0% 610.4 633.2 -3.6% Cost of sales 242.9 219.5 10.6% 413.3 401.8 2.9% SG&A 30.0 31.5 -4.7% 58.2 63.7 -8.6% Other expenses, net 1.9 2.3 -20.4% 3.4 4.0 -15.8% Operating income 89.2 107.0 -16.6% 135.6 163.7 -17.2% Oper
Slide 27: Balance Sheet
BALANCE SHEET June 2025 June 2024 Variation Total assets 3,260.7 2,851.6 14.3% Current assets 1,217.2 1,252.9 -2.8% Cash and equivalents 826.9 879.4 -6.0% Other current assets 390.3 373.5 4.5% Non-current assets 2,043.5 1,598.7 27.8% Plant, property and equipment 1,633.4 1,216.3 34.3% Goodwill and i
Slide 28: Free Cash Flow
FREE CASH FLOW US$ million Q2 25 Q2 24 Var H1 25 H1 24 Var EBITDA 118.4 133.9 -11.6% 191.9 216.8 -11.5% Interest income (Expense) 2.4 7.1 -65.7% 14.9 24.3 -38.7% Decrease (Increase) in Working Capital (32.9) (61.5) -46.5% (50.2) (75.9) -33.8% Taxes (21.4) (26.4) -19.0% (33.0) (31.6) 4.2% Prepaid exp