This article first appeared on GuruFocus .
-
Consolidated Revenue:Increased 2.4% year over year.
-
Consolidated EBITDA:Reached 280 billion pesos, down 5% year over year.
-
Consolidated EBITDA Margin:Stood at 21.2%, 175 basis points below last year.
-
Adjusted Net Income:Closed at 164 billion pesos.
-
Cement Volumes:Down 7% year over year, impacted by exports and trading.
-
Ready-Mix Volumes:Up 15% year over year, driven by outstanding performance in Colombia.
-
Year-to-Date EBITDA Margin:Stood at 21.7%.
-
GROSI (Return on Invested Capital):Reached 16.5% on a last 12-month basis.
-
Shareholder Distributions:Returned more than P530 billion in 2026, reaching 63% of the COP707 billion in dividends approved for the year.
-
Colombia Revenue:Rose 4% year over year.
-
Colombia EBITDA:Reached 201 billion pesos, growing 13% year over year.
-
Colombia EBITDA Margin:Came in at 26.2% on a year-to-date basis.
-
Colombia Local Cement Volumes:Grew 10.5% year over year.
-
Colombia Ready-Mix Volumes:Grew 15.9% year over year.
-
Central America Cement Volumes:Expanded 20.8% year over year.
-
Central America Revenue:Increased 20.8% year over year.
-
Central America EBITDA:Reached $14 million, 19% lower than last year.
-
Caribbean Cement Volumes:Flat year over year.
-
Caribbean Revenue:Grew 2.1% year over year.
-
Caribbean EBITDA:Reached $16 million, 2.5% below last year.
-
Argos LATAM Aggregate EBITDA:Stood at 286 billion pesos.
-
Free Cash Flow Conversion:77% of EBITDA for the quarter.
-
Net Debt-to-EBITDA Ratio:Stood at minus 4.4 times for the second quarter.
-
Interest Income:Generated $148 million with an average yield of SOFR plus 26 basis points.
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Strong performance in Colombia with 10.5% growth in local cement volumes and 15.9% in ready-mix, driven by solid project pipeline and retail recovery.
-
Successful progress in building two focused platforms (Argos Materials and Argos LATAM), with key leadership hires and strategic milestones in the Dominican Republic and Tampa.
-
Robust shareholder returns with total shareholder return of 750% since Sprint launch and 25% year-to-date, alongside active buybacks and dividend distributions.
-
Positive demand dynamics in Central America, with cement volumes up 20.8% and strong growth in Guatemala (volumes tripled) and Panama recovery.
-
Strong cash position with net debt-to-EBITDA of -4.4x, generating $148 million in interest income, providing ample capital for growth and M&A opportunities.
-
Operational excellence in Colombia with OEE over 80% in 2026, driving cost control and efficiency, and a best-in-class free cash flow conversion of 77% of EBITDA in LATAM.
Negative Points
-
Consolidated EBITDA decreased 5% year-over-year, with EBITDA margin down 175 basis points to 21.2%, impacted by higher maintenance costs and lower exports.
-
Cement volumes were 7% lower year-over-year, affected by softer demand in the US market and reduced export volumes.
-
Central America EBITDA declined 19% in the quarter due to planned major maintenance in Honduras, though year-to-date figures show improvement.
-
Caribbean EBITDA was 2.5% lower year-over-year, with costs from the first-quarter operational disruption in the Dominican Republic recognized in the quarter.
-
Adjusted net income was impacted by lower net interest income (down 17 billion pesos) due to reduced cash balance from investments, debt repayment, and shareholder distributions.
-
A provision of 64 billion pesos was recorded for a foreseen adjustment to the Summit transaction, reflecting ongoing legal and indemnity obligations.
Q & A Highlights
Q: What is driving the expected rebound in EBITDA margin for the second half of the year, and how are the business interruption insurance payouts and FX option payouts being accounted for? A: Tomas Restrepo (Executive Vice President) confirmed the company remains committed to its full-year EBITDA margin guidance of 24% to 26%. The rebound will come from both Colombia and Central America, as the first semester had a heavy concentration of kiln maintenance. Natalia Ochoa (VP, Corporate Finance) clarified that the $1 million insurance payout from the Dominican Republic disruption is recorded in EBITDA. Regarding the FX hedges, $2.25 million is reflected as higher revenues (in EBITDA), while $1.1 million is recorded as financial income, as the portion of exports was lower than budgeted.
Q: What are the expectations for growth in the second half of the year, and what conditions are needed for the company to consider re-entering Venezuela? A: Tomas Restrepo (Executive Vice President) outlined a phased, de-risked approach for Venezuela: first, land shipments (current phase); second, imports from Cartagena; and third, potential investment once the market is solid. Carlos Yusty (CEO, Argos LatAm) added that the Venezuelan market is currently 1.7 million tons per year, which is only 10% of the country's nominal capacity. He expects to end the year at a rate of 5,000 tons per month in exports. For the second half, he noted that historically, the second half is better than the first due to the rainy season ending, with Honduras growing month-by-month and Colombia performing well.
Q: Which segments will drive cement volume growth in Colombia for the second half of the year? A: Carlos Yusty (CEO, Argos LatAm) stated that the retail segment is the primary driver, growing at a double-digit rate this year. He expects this trend to continue for the rest of the year. While the new government is structuring infrastructure projects, these are more likely to materialize in 2027 and 2028. Tomas Restrepo (Executive Vice President) also acknowledged the recent earthquake, noting the company is focused on helping communities and employees in the affected regions.
Q: What are the one-year volume targets for Venezuela and Guatemala, and what is the business model for Guatemala? Additionally, can you provide details on the provision related to the Summit transaction? A: Tomas Restrepo (Executive Vice President) explained that the 64 billion pesos ($17.5 million) provision is related to a specific indemnity obligation retained with Summit Materials from the January 2024 transaction, tied to a previously disclosed class action on a legacy asset in the Southeast US. This is recorded in discontinued operations and excluded from adjusted net income. Carlos Yusty (CEO, Argos LatAm) stated that for Venezuela, the target is to increase exports from 5,000 tons per month to 7,000-8,000 tons per month in 2027, but the model needs to be improved. For Guatemala, the target is to reach a range of 25,000 to 35,000 tons per month, with plans to shift the business model to enhance profitability and free up volumes from Honduras.
Q: What are the levers for the $75 million organic growth target in Argos Latam, and what is the breakdown for Colombia? A: Tomas Restrepo (Executive Vice President) stated that the $75 million incremental EBITDA target is based on pricing, volumes, recovering market share, and synergies. Carlos Yusty (CEO, Argos LatAm) emphasized that the growth is not just from Colombia, although it accounts for ~60% of revenue and EBITDA. The strategy involves the "La Mina al Mercado" operating model and "Luz Verde" commercial model, focusing on reliability, capturing value across the entire value chain, and creating a positive gap between volume/price and variable/fixed costs.
Q: Given the potential differences in the cost of capital between the Latin American and US platforms, and the recent derating of US cement companies, do you see an opportunity to acquire assets in the US at the lower end of your indicated range? A: Tomas Restrepo (Executive Vice President) responded that Argos Latam is a strong cash generator with over 70% cash flow conversion, making it self-sufficient for organic growth. In the US, the company has a "war chest" for growth, including organic investments in the Dominican Republic and ports. He confirmed they are seeing a potential window for M&A, employing a "string of pearls" strategy with a comprehensive pipeline of opportunities, while also keeping an eye on public assets that may have been derated.
Q: How much of Venezuela's 11.7 million tons of installed cement capacity is operational and recoverable today? A: Carlos Yusty (CEO, Argos LatAm) clarified that the feasible operational capacity in Venezuela is currently only 1.7 million tons, which is why the country needs to import cement. He estimated that with significant investment, capacity could potentially be improved from 1.7 million to 5-6 million tons, but the remaining capacity is very difficult or unrecoverable to bring back online.
Q: What are the expectations for Argos Materials' revenue and volume for this year? A: Jason Teter (CEO, Argos Materials) stated that the company is in a structuring stage, having just built its team and working on its M&A pipeline. He confirmed that revenue for the year will be "relatively minimal," which is expected for a startup organization focused on building the business, getting the Dominican Republic operations up and running, and developing the logistics chain.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
