Cemex Raises Operating EBITDA 12% to $990 Million in Third Quarter
Key Facts
Cemex increased operating earnings before interest, taxes, depreciation and amortization (EBITDA) 12% to $990 million in the third quarter of 2026, while its margin widened 0.8 percentage points to 21.6% year over year. The results showed uneven growth across the company’s markets, with strong performance in Mexico offset by a decline in U.S. operating earnings. Meanwhile, Bank of Marin Bancorp reported earnings per share of $0.62, above analysts’ estimate of $0.57. But the bank’s revenue was $35.07 million, slightly below the estimate of $35.11 million. The results highlight two different paths to improved performance: expanding activity and margins at Cemex, and higher interest income at the bank.
Cemex sales reached $4.590 billion, up 8% from $4.245 billion in the same period of 2025, or 5% on a like-for-like basis. Net income attributable to shareholders also rose 55% to $407 million, compared with $264 million a year earlier. The company said performance benefited from its “Cutting Edge” program, higher prices and growth in cement volumes. Chief Executive Jaime Muguiro said teams remained resilient and focused on factors the company could control amid a volatile macroeconomic backdrop. Earnings growth came alongside free cash flow from operations of $723 million in the quarter, a third-quarter record and a year-over-year increase of 34%.
Mexico was Cemex’s standout market in the quarterly results, with sales up 16% to $1.299 billion and operating EBITDA up 30% to $480 million. In the United States, sales rose 5% to $1.373 billion, but operating EBITDA fell 4% to $259 million. The divergence shows that revenue growth did not translate into a comparable increase in operating earnings in the U.S. market. Across cash flows, free cash flow from operations rose 194% to $1.4 billion from the start of the year through the end of September. The cash conversion rate was 60% for the twelve months ended in the third quarter.
At Bank of Marin, net interest income rose to $31.4 million, supported by an average loan yield of 5.23% and an average deposit cost of 1.24%. Net interest margin reached 3.48%, compared with 3.38% in the previous quarter, as loan yields improved 11 basis points quarter over quarter. Total deposits increased $25.3 million, while noninterest-bearing deposits rose $45 million. Total loans also grew $43.4 million, or 2.07%, including the purchase of a $31.1 million California residential loan portfolio. Noninterest expenses declined $1 million from the previous quarter, after reaching seasonally high levels in the second quarter; most of the decrease came from salaries and benefits.
Cemex continues to reshape its asset portfolio. Estimated proceeds from divestitures have exceeded $200 million since the company launched its asset-disposal initiative last year, involving more than 140 facilities. During the quarter, the company completed the sale of ready-mix concrete and recycled concrete assets in the Atlanta market. It also began exclusive negotiations to sell some ready-mix concrete and aggregates assets in southeastern France. In premarket trading on October 26, 2026, Cemex shares rose 2.84% after the results were announced. The company said it expects sector demand in Mexico to remain favorable, with residential construction activity continuing in 2027.
Bank of Marin is scheduled to hold its third-quarter results call online on October 27, 2026. The call follows its report of earnings per share above market estimates, while revenue remained slightly below expectations. Margin, loan and deposit indicators provide further detail on the bank’s performance during the quarter. At Cemex, the results combine growth in group sales, earnings and cash flow with a clear divergence between the Mexican and U.S. markets. Residential construction activity in Mexico during 2027 remains part of the company’s outlook.