Cementir Holding H1 2025 slides: stable volumes amid profitability challenges

Introduction & Market Context

Cementir Holding presented its first half 2025 results on July 29, 2025, revealing a period of stable cement volumes but declining profitability. The company, part of the Caltagirone Group, maintained its full-year guidance despite facing headwinds from non-recurring events and negative currency effects in several key markets.

The results come against a backdrop of uncertain commercial and geopolitical conditions affecting the global cement industry, with varied performance across the company’s diverse geographical footprint spanning Europe, North America, Asia, and Africa.

Executive Summary

Cementir’s H1 2025 results aligned with management expectations, showing stable overall cement sales volumes and slightly higher non-GAAP revenues of €807.1 million (+0.5% year-over-year). However, profitability metrics declined, with non-GAAP EBITDA falling 5.7% to €171.5 million and non-GAAP group net profit dropping 20.4% to €81.4 million.

As shown in the following financial highlights chart:

The company’s performance was significantly impacted by two non-recurring events: a fire in the alternative fuels feeding system at the Gaurain plant in Belgium and technical issues during the restart of the second production line in Egypt, which led to postponed shipments. Additionally, a €7 million negative exchange rate effect weighed on results.

Despite these challenges, Cementir maintained a strong financial position, reporting a net cash position of €144 million, an improvement of €88.6 million year-on-year.

Quarterly Performance Highlights

Cementir’s regional performance showed significant variations. The Nordic & Baltic region emerged as the strongest performer, with revenue increasing 3.1% to €316.2 million and EBITDA rising 6.8% to €82.8 million. This region now accounts for 48% of the group’s EBITDA.

The following key takeaways summarize the company’s overall H1 2025 performance:

Belgium and France, which contribute 27% of group EBITDA, saw revenue decline 4.2% to €164.4 million and EBITDA fall 6.4% to €46.1 million, with domestic cement volumes down approximately 8%.

In Türkiye, despite a 5% increase in domestic cement volumes and 5% revenue growth to €165 million, EBITDA declined 25% to €20.1 million due to rising costs. This region represents 12% of group EBITDA.

North America, accounting for 7% of group EBITDA, experienced a 2.4% revenue decline to €90.7 million, with white cement volumes down approximately 3%. EBITDA remained relatively stable at €11.3 million (-0.9%).

Regional Performance Analysis

The Nordic & Baltic region’s strong performance was driven by improvements across all countries in the area. Denmark, the largest contributor, saw EBITDA increase by 5.2% year-over-year, while Norway reported a 10% increase in ready-mix concrete sales. Sweden benefited from a 3% revaluation of the Swedish Krona against the Euro.

As illustrated in the Nordic & Baltic performance breakdown:

Asia Pacific, contributing 4% of group EBITDA, faced challenges with revenue declining 4.8% to €47.4 million and EBITDA dropping 26.5% to €6.9 million. China was particularly weak with an 11.5% revenue decline and 31.9% EBITDA reduction, while Malaysia showed more resilience with a slight 1.1% revenue increase.

Egypt experienced significant headwinds with revenue falling 11.1% to €20.9 million, primarily due to a 23% depreciation of the Egyptian pound. EBITDA declined 34.5% to €5.1 million, and white cement volumes were down approximately 2%.

Sustainability Initiatives

Cementir continued to make progress on its sustainability goals, reducing CO2 emissions per ton of grey cement by 3% to 616 kg. The company was recognized by Sustainalytics as an "ESG Industry Top-Rated" company, highlighting its commitment to environmental stewardship.

The following table details the company’s non-financial performance metrics:

These sustainability efforts are increasingly important for cement producers as they navigate the industry’s transition toward lower carbon operations and respond to growing regulatory and market pressures for environmentally responsible practices.

Forward-Looking Statements

Despite the challenges faced in the first half of 2025, Cementir confirmed its full-year guidance, projecting:

• Revenue of approximately €1.75 billion
• EBITDA of around €415 million
• Net cash position of approximately €410 million
• Capital expenditure of about €98 million

This guidance suggests management’s confidence in a stronger second half performance to offset the headwinds experienced in H1.

As shown in the guidance confirmation slide:

The company’s detailed income statement provides additional context for its financial performance:

Conclusion

Cementir Holding’s H1 2025 results reflect the company’s resilience in navigating a complex global market environment. While facing profitability challenges from non-recurring events and currency headwinds, the company maintained stable volumes and a strong balance sheet. The significant regional variations in performance highlight both opportunities and risks in Cementir’s diversified geographical footprint.

The confirmation of full-year guidance signals management’s confidence in addressing the challenges encountered in the first half. Investors will likely focus on whether the company can achieve the implied second-half improvement needed to meet these targets, particularly in regions that underperformed during H1 2025.

Full presentation:

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