Earnings release
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2 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS GCC REPORTS SECOND QUARTER 2025 RESULTS Chihuahua, Mexico, July 22, 2025 – GCC, S.A.B. de C.V. (BMV: GCC*), a leading supplier and producer of cement, aggregates, and concrete in the United States and Mexico, announced today its results for the second quarter of 2025. Q2 2025 HIGHLIGHTS • Consolidated net sales increased 1% year-on-year to US$363.9 million • U.S. sales grew 7.7% as concrete and cement volumes increased 20.7% and 4.2%, respectively • U.S. concrete and cement prices increased 9.5% and 0.6%, respectively • Mexico cement and concrete prices increased 4.2% and 3%, respectively • EBITDA decreased 11.6% to US$118.4 million, with a 32.5% EBITDA margin • Cash and equivalents totaled US$826.9 million • Net leverage (net debt/EBITDA) ratio totaled -0.48x as of June 2025 • Earnings per share decreased 18.1% year-on-year, to US$0.2242 • Free cash flow totaled US$48.6 million with a 41.1% free cash flow conversion rate • A dividend of Ps. 1.7674 per share was paid on May 13, 2025, representing a 15% year-on-year increase KEY FIGURES (millions of dollars) Q2 25 Q2 24 Q2 25 vs. Q2 24 H1 25 H1 24 H1 25 vs. H1 24 Net sales 363.9 360.3 1.0% 610.4 633.2 -3.6% Operating income before other expenses, net 91.0 109.3 -16.7% 139.0 167.8 -17.1% EBITDA* 118.4 133.9 -11.6% 191.9 216.8 -11.5% EBITDA margin 32.5% 37.1% 31.4% 34.2% Free cash flow** 48.6 29.0 67.7% 60.8 70.7 -14.0% Net income 73.5 89.6 -18.0% 114.1 138.5 -17.7% Earnings per share (US$) *** 0.2242 0.2738 -18.1% 0.3480 0.4235 -17.8% *EBITDA: Operating income before other expenses + depreciation and amortization **Free cash flow before growth and strategic CapEx ***Earnings per share calculated based on average number of outstanding shares during the quarter Enrique Escalante, GCC’s Chief Executive Officer, commented: “While the second quarter was more challenging than anticipated, GCC’s resilience has been demonstrated in the past, and this year will be no exception. Our company-wide cost and expense optimization plan reflects our commitment to protecting profitability through the remainder of the year.”
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3 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS Enrique continued, “We remain focused on what we can control and confident that our disciplined execution, along with our long-term strategy, will enable us to navigate short-term pressures and continue creating sustained value for our stakeholders.” FINANCIAL RESULTS Consolidated net sales for the second quarter of 2025 increased by 1% year-on-year, to US$363.9 million up from US$360.3 million in the second quarter of 2024. This was primarily due to increased concrete and cement volumes in the United States, and a favorable price environment in both markets. These gains were partially offset by decreased cement and concrete volumes in Mexico, as well as the depreciation of the Mexican peso against the U.S. dollar. For comparative purposes, consolidated net sales, excluding the exchange rate effect, increased by 4% during the quarter. Six months: Consolidated net sales decreased by 3.6%, to US$610.4 million. This result was driven by decreased cement and concrete volumes in Mexico, partially offset by increased cement and concrete volumes in the United States, and a favorable price environment in both markets. For comparative purposes, consolidated net sales, excluding the depreciation of the Mexican peso against the U.S. dollar, increased by 0.9%. *Prices in local currency NET SALES (millions of dollars) Q2 25 Q2 24 Q2 25 vs. Q2 24 H1 25 H1 24 H1 25 vs. H1 24 Consolidated 363.9 360.3 1.0% 610.4 633.2 -3.6% United States 272.3 252.8 7.7% 440.0 426.2 3.2% Mexico 91.7 107.6 -14.8% 170.5 207.0 -17.6% Q2 25 vs. Q2 24 H1 25 vs. H1 24 Volumes Prices* Volumes Prices* Cement United States 4.2% 0.6% 0.7% 1.6% Mexico -6.2% 4.2% -9.2% 4.7% Concrete United States 20.7% 9.5% 15.4% 10.6% Mexico -13.1% 3.0% -12.9% 3.0%
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4 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS U.S. sales for the second quarter of 2025 increased by 7.7% to US$272.3 million, representing 75% of GCC’s consolidated net sales. This was primarily due to a 20.7% and 4.2% increase in concrete and cement volumes, respectively, and a 9.5% and 0.6% increase in concrete and cement prices, respectively. The most dynamic market segment during the quarter was renewable energy. Six months: U.S. sales increased by 3.2% to US$440 million. This growth was primarily driven by a 15.4% and 0.7% increase in concrete and cement volumes, respectively, and a 10.6% and 1.6% increase in concrete and cement prices. Mexico sales decreased by 14.8% in the second quarter of 2025, to US$91.7 million, representing 25% of GCC’s consolidated net sales. This decline was driven by a 13.1% and 6.2% decrease in concrete and cement volumes, respectively, partially offset by a 4.2% and 3% increase in cement and concrete prices. The depreciation of the Mexican peso against the U.S. dollar during the quarter decreased sales by US$11 million. For comparison, sales in Mexico, excluding this effect, decreased by 4.6%. Mexico sales during the quarter were primarily impacted by the slowdown in the industrial segment, partially offset by increased demand related to housing. Six months: Mexico sales decreased by 17.6% to US$170.5 million, driven by a 12.9% and 9.2% decrease in concrete and cement volumes, respectively. This decline was partially offset by a 4.7% and 3% increase in cement and concrete prices. The depreciation of the Mexican peso against the U.S. dollar decreased sales by US$28.4 million. For comparison, sales in Mexico, excluding the effects of the peso depreciation, decreased by 3.9%. Cost of sales totaled US$242.9 million for the second quarter of 2025, representing 66.7% of total sales; a 5.8 percentage-point increase. This result was primarily driven by lower production due to the timing of plant maintenance, an effect that is expected to normalize in the second half of the year. Additional impacts included the absence of the natural gas hedge benefit we recognized in the second quarter of 2024, as well as higher transfer freight expenses, increased real estate sales and higher fuel prices. Six months: Cost of sales represented 67.7% of revenues; a 4.2 percentage-point year-over-year increase. This was result of the same factors that impacted the second quarter of 2025. Selling, general, and administrative expenses totaled US$30 million in the second quarter of 2025, equivalent to 8.3% of consolidated net sales; a 50 basis-point decrease, driven
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5 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS primarily by the depreciation of the Mexican peso against the U.S. dollar and lower consulting services. Six months: Selling, general, and administrative expenses totaled US$58.2 million, equivalent to 9.5% of sales, representing a 50 basis-point decrease, as a result of the same reasons as the second quarter. Operating income before other expenses decreased 16.7% to US$91 million in the second quarter of 2025, compared to US$109.3 million in the second quarter of 2024. Six months: Operating income before other expenses decreased 17.1% to US$139 million. Other expenses totaled US$1.9 million in the second quarter of 2025, compared to US$2.3 million in the second quarter of 2024; a 20.4% decrease. Six months: Other expenses totaled US$3.4 million, compared to US$4 million in the prior- year period. Operating income decreased 16.6% to US$89.2 million in the second quarter of 2025, compared to US$107 million in the second quarter of 2024. Six months: Operating income decreased 17.2% to US$135.6 million. As a result, second quarter 2025 EBITDA decreased by 11.6% to US$118.4 million. Second quarter 2025 EBITDA margin was 32.5%; a 4.6 percentage-point decrease. 85% of second quarter 2025 EBITDA was generated by the Company’s U.S. operations and 15% by its Mexico operations. Six months: EBITDA decreased 11.5% to US$191.9 million, while the EBITDA margin decreased 2.8 percentage points to 31.4%. GCC’s U.S. operations generated 78% of EBITDA and Mexico generated 22% of EBITDA. Net financial income totaled US$8.5 million in the second quarter of 2025, compared to US$15.2 million in the prior-year period; a 44.1% decrease. This was primarily due to the depreciation of the Mexican peso against the U.S. dollar and lower financial income resulting from a decreased average cash balance, partially offset by the benefit of the interest capitalization related to the Odessa plant expansion project. Six months: Net financial income totaled US$16 million, compared to US$25.4 million in the prior year period, as a result of the same reasons impacting the second quarter. Income tax totaled US$24.7 million for the second quarter of 2025, compared to US$32.6 million in the prior year period; a 24.1% decrease. This was due to lower income before taxes.
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6 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS Six months: Income tax totaled US$39 million; a 23% year-on-year decrease. This was due to lower income before taxes. Consolidated net income was US$73.5 million for the second quarter of 2025, an 18% decrease compared to US$89.6 million in the second quarter of 2024. Six months: Consolidated net income decreased 17.7% and totaled US$114.1 million, compared to US$138.5 million for the same period in 2024. Earnings per share was US$0.2242 in the second quarter of 2025, compared to US$0.2738 in the second quarter of 2024; an 18.1% decrease. Six months: Earnings per share totaled US$0.3480, compared to US$0.4235 in the prior-year period; a 17.8% year-over-year decrease. Free cash flow was US$48.6 million in the second quarter of 2025, compared to US$29 million for the same period in 2024; a 67.7% increase. This increase was due to lower working capital requirements, maintenance CapEx, and cash taxes, partially offset by lower EBITDA generation and interest income. Six months: Free cash flow was US$60.8 million, compared to US$70.7 million for the same period in 2024; a 14% decrease. This decrease was primarily due to lower EBITDA generation, interest income, and accrual payments, partially offset by lower working capital requirements and maintenance CapEx.
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7 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS FREE CASH FLOW (millions of dollars) Q2 25 Q2 24 Var H1 25 H1 24 Var Operating income before other expenses 91.0 109.3 -16.7% 139.0 167.8 -17.1% Depreciation and amortization 27.3 24.6 11.3% 52.9 49.0 7.8% 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 expenses 3.2 3.0 7.6% 3.9 5.6 -30.1% Accruals and other accounts (4.6) 1.6 n.m. (33.0) (24.8) 33.3% Operating leases (IFRS16 effect) (3.4) (3.1) 9.8% (6.6) (6.4) 3.8% Operating cash flow 61.7 54.5 13.2% 87.9 108.1 -18.7% Maintenance CapEx (13.1) (25.5) -48.7% (27.1) (37.4) -27.6% Free cash flow 48.6 29.0 67.7% 60.8 70.7 -14.0% Strategic & Growth CapEx (88.1) (71.1) 23.9% (155.5) (96.8) 60.6% Shares repurchase, net 0.5 (0.6) n.m. (0.5) 0.4 n.m. Debt additions 0.0 0.0 n.m. 100.0 0.0 n.m. Dividends paid (29.8) (30.0) -0.5% (29.8) (30.0) -0.5% FX effect 22.3 (28.4) n.m. 21.2 (23.7) n.m. Initial cash balance 873.4 980.5 -10.9% 830.6 958.7 -13.4% Final cash balance 826.9 879.4 -6.0% 826.9 879.4 -6.0% FCF conversion rate* 41.1% 21.7% 31.7% 32.6% *Free cash flow conversion rate: Free cash flow after maintenance CapEx/EBITDA Total debt was US$600 million as of June 30, 2025, based on contractual balances, reflecting a 20% year-on-year increase. Long-term debt represented 100% of the Company’s total debt. As of June 30, 2025, 100% of GCC’s debt was denominated in U.S. dollars. Net leverage (net debt/EBITDA) at the end of the second quarter of 2025 was -0.48 times, compared to -0.56 times as of March 31, 2025, in accordance with GCC’s contractual obligations. INTEREST-BEARING DEBT* (millions of dollars) June 2025 June 2024 2025 vs. 2024 Total 600.0 500.0 20.0% Short-term 0.0 0.0 0.0% Long-term 600.0 500.0 20.0% *Excludes amortizable commissions and issuance expenses
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8 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS REVISED OUTLOOK FOR 2025 United States Volumes Cement Flat Concrete Mid-teens increase Prices (US$) Cement Flat Concrete Mid-single digit increase Mexico Volumes Cement Mid-single digit decrease Concrete Prices (US$) Cement Mid-single digit increase Concrete Low-single digit increase Consolidated EBITDA Growth Mid-single digit decrease FCF Conversion Rate* > 60% Total CapEx US$400 million Growth $330 Maintenance $70 Net Debt / EBITDA, year-end Negative BASIS OF PREPARATION FOR FINANCIAL STATEMENTS The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and use the U.S. dollar as the reporting currency. Currency translations from pesos to U.S. dollars use the average monthly exchange rates published by Banco de México, as shown below. EXCHANGE RATES (pesos per U.S. dollar) 2025 2024 Second quarter average 19.5281 17.2295 As of June 30 18.8928 18.2215 Accumulated average 19.9753 17.1128 Unless otherwise stated, all percentage changes refer to the second quarter (or six months) of 2025 compared to the corresponding periods in 2024.
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9 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS ANALYST COVERAGE Analysts at the following brokerages currently cover GCC’s shares: 1. Actinver 2. Bank of America Merrill Lynch 3. BBVA 4. Bradesco BBI 5. Citigroup 6. Data Based Analysis 7. GBM - Grupo Bursátil Mexicano 8. Grupo Financiero Banorte 9. Grupo Financiero Ve por Más 10. Itaú BBA 11. J.P. Morgan 12. Morgan Stanley 13. Santander 14. Scotiabank 15. UBS MATERIAL EVENTS GCC announced dividend payment The General Shareholders’ Meeting held on April 24, 2025, declared a Ps. 1.7674 dividend per share, which came from the balance of the net earnings on a tax basis corresponding to fiscal year 2013 and prior years. The declared dividend was paid on May 13, 2025, through S.D. Indeval, against delivery of coupon 22 of the current share certificates. GCC recognized as a Socially Responsible Company For the 20th consecutive year, GCC received the Socially Responsible Company (ESR®, for its acronym in Spanish) distinction in Mexico. This recognition is granted by the Mexican Center for Philanthropy (Cemefi, for its acronym in Spanish) and the Alliance for Corporate Social Responsibility (AliaRSE, for its acronym in Spanish). It is awarded exclusively to companies that achieve a score above 75% on the Corporate Social Responsibility Index. This achievement reaffirms GCC’s commitment to upholding the highest standards in business ethics, quality of life within the company, community engagement, and environmental care and preservation.
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10 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS SUSTAINABILITY GCC released its 2024 Integrated Report GCC published its Integrated Report for fiscal year 2024, providing a comprehensive overview of its strategic actions and accomplishments throughout the year. In 2024, GCC delivered record financial growth with unprecedented sales, EBITDA, EBITDA margin, and net income, while achieving significant progress in its ESG initiatives. The report reflects the Company’s commitment to transparency, sustainability, and excellence, as well as the teams’ dedication to building a solid foundation for the future. To read GCC’s 2024 Integrated Report, click here. CONFERENCE CALL GCC, S.A.B. de C.V. will host its earnings conference call on July 23, 2025. Time: 11 a.m. Eastern Time (New York) / 9 a.m. Central Time (Mexico City) Conference ID: 13750648 Dial in: U.S. (toll free): 1-877-407-0789 International: 1-201-689-8562 Replay (through July 30, 2025, 11:59 p.m. ET): U.S. (toll free): 1-844-512-2921 International: 1-412-317-6671 Listen-only webcast and replay: click here
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11 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS Income Statement (Thousands of dollars) Q2 2025 % Q2 2024 % Q25 / Q24 Net sales 363,909 100.0%360,338 100.0% 1.0% U.S. sales 272,256 74.8%252,783 70.2% 7.7% Mexico sales 91,653 25.2% 107,555 29.8% -14.8% Cost of sales 242,864 66.7% 219,547 60.9% 10.6% Gross income 121,045 33.3% 140,791 39.1% -14.0% Selling, general and administrative expenses30,027 8.3% 31,505 8.7% -4.7% Operating income before other expenses, net91,018 25.0%109,286 30.3% -16.7% Other (income) expenses 1,852 0.5% 2,326 0.6% -20.4% Operating income 89,166 24.5%106,960 29.7% -16.6% Financial income 12,383 3.4% 17,190 4.8% -28.0% Financial expenses (2,043) -0.6% (6,739) -1.9% -69.7% Exchange gain (loss), net (1,839) -0.5% 4,762 1.3% n.m. Net financing income 8,501 2.3% 15,213 4.2% -44.1% Share of profit of associates and joint venture 567 0.2% 24 0.0% n.m. Income before income taxes 98,234 27.0% 122,197 33.9% -19.6% Income taxes (benefit) 24,719 6.8% 32,558 9.0% -24.1% Consolidated net income 73,515 20.2% 89,639 24.9% -18.0% Controlling interest 73,514 20.2% 89,638 24.9% -18.0% Non-controlling interest 1 0.0% 1 0.0% 0.0% EBITDA 118,362 32.5%133,863 37.1% -11.6% Free cash flow 48,624 13.4% 28,991 8.0% 67.7%
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12 Q2 2025 EARNINGS FOR MORE INFORMATION: investors@gcc.com Cumulative Income Statement to June (Thousands of dollars) 2025 % 2024 % 2025 / 2024 Net sales 610,440 100.0%633,183 100.0% -3.6% U.S. sales 439,981 72.1% 426,218 67.3% 3.2% Mexico sales 170,459 27.9%206,965 32.7% -17.6% Cost of sales 413,252 67.7% 401,762 63.5% 2.9% Gross income 197,188 32.3% 231,421 36.5% -14.8% Selling, general and administrative expenses58,197 9.5% 63,665 10.1% -8.6% Operating income before other expenses, net138,991 22.8% 167,756 26.5% -17.1% Other (income) expenses 3,409 0.6% 4,048 0.6% -15.8% Operating income 135,582 22.2% 163,708 25.9% -17.2% Financial income 25,482 4.2% 34,846 5.5% -26.9% Financial expenses (7,516) -1.2% (13,388) -2.1% -43.9% Exchange gain (loss), net (2,007) -0.3% 3,984 0.6% n.m. Net financing income 15,959 2.6% 25,442 4.0% -37.3% Share of profit of associates and joint venture1,493 0.2% 12 0.0% n.m. Income before income taxes 153,034 25.1% 189,162 29.9% -19.1% Income taxes (benefit) 38,978 6.4% 50,639 8.0% -23.0% Consolidated net income 114,056 18.7% 138,523 21.9% -17.7% Controlling interest 114,054 18.7% 138,522 21.9% -17.7% Non-controlling interest 2 0.0% 1 0.0% 100.0% EBITDA 191,868 31.4% 216,802 34.2% -11.5% Free cash flow 60,806 10.0% 70,685 11.2% -14.0%
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13 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS Statement of Financial Position (Thousands of dollars) June 2025 June 2024Variation Total assets 3,260,725 2,851,565 14.3% Current assets 1,217,189 1,252,856 -2.8% Cash and cash equivalents 826,854 879,385 -6.0% Accounts receivable, net 170,544 155,855 9.4% Other accounts receivable, net 31,317 29,400 6.5% Due from related parties 3,935 4,103 -4.1% Inventories 174,190 173,674 0.3% Prepaid expenses 10,349 10,439 -0.9% Non-current assets 2,043,536 1,598,709 27.8% Inventory properties 56,472 51,026 10.7% Investment in associates 31,704 27,488 15.3% Property, machinery and equipment, net 1,633,400 1,216,327 34.3% Long term right of use assets 29,241 20,622 41.8% Goodwill 216,674 212,598 1.9% Intangible assets, net 59,131 54,372 8.8% Other non-current assets 16,914 16,276 3.9% Total liabilities 1,188,987 1,054,907 12.7% Short-term liabilities 304,309 296,654 2.6% Trade accounts payable 183,552 160,856 14.1% Due to related parties 1,713 3,248 -47.3% Short term - employee benefits 38,879 37,552 3.5% Accrued expenses and taxes other than income taxes 65,867 82,174 -19.8% Provisions 2,925 5,649 -48.2% Short term right of use liabilities 11,373 7,175 58.5% Long-term liabilities 884,678 758,253 16.7% Long term debt 596,327 497,141 20.0% Long term right of use liabilities 20,308 14,620 38.9% Employee benefits 28,375 30,238 -6.2% Provision for environmental restoration 25,952 24,562 5.7% Deferred income taxes 213,716 191,692 11.5% Total equity 2,071,738 1,796,658 15.3% Controlling interest 2,071,063 1,795,683 15.3% Capital stock 32,070 32,070 0.0% Additional paid-in capital 148,365 148,365 0.0% Reserves 22,659 22,659 0.0% Retained earnings 2,022,957 1,729,591 17.0% Consolidated net income 114,054 138,522 -17.7% Other comprehensive income (269,042) (275,524) 2.4% Non-controlling interest 675 975 -30.8% Total liabilities and equity 3,260,725 2,851,565 14.3%
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14 FOR MORE INFORMATION: investors@gcc.com Q2 2025 EARNINGS ABOUT GCC GCC is a leading supplier and producer of cement, aggregates, concrete, and construction-related services in the United States and Mexico. The Company has an annual cement production capacity of 6 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC*. This earnings report may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and words such as “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project,” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties, including but not limited to changes in macroeconomic, political, legal, and public health conditions, including COVID-19, governmental or business conditions in the markets where GCC operates, changes in interest rates, inflation rates, and currency exchange rates, as well as the performance of the construction industry, pricing, business strategy, and other factors. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this earnings report. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided, and percentages may not precisely reflect the absolute figures.