CEMEX S.A.B. de C.V. has sold its Panamanian operations for US$200 million ($31.83 billion) to Grupo Estrella as it continues its bolt-on investment strategy in its key markets such as the United States of America (USA).

The transaction was completed on October 6 and represents the second completed divestment in 2025. The deal also represented a multiple of 12 times adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) for the 12 months ending August 31.

Grupo Estrella, a family-owned industrial conglomerate in the Dominican Republic, acquired a cement plant with an installed capacity of 1.2 million tonnes, two ready-mix concrete plants, aggregates assets, and the rights to acquire additional reserves for the Panamanian operations. Cemex retained the admixtures business in Panama.

“These transactions are important building blocks in our strategy to rebalance our portfolio and continue investing in growth in priority markets, particularly aggregates in the US said Cemex Chief Executive Officer Jaime Muguiro Dominguez in a press release.

Cemento Bayano, S.A., the operational entity for Cemex’s Panamanian operations and a subsidiary of Cemex Latam Holdings, S.A. (CLH), spent US$13 million during 2024 on capital expenditure related to its property, plant and equipment. External revenue declined five per cent to US$125 million during 2024 as cement consumption declined following presidential elections and changes in government. Seventy-two per cent of Panama’s revenue was derived from cement sales, 26 per cent from ready-mix concrete and the remainder from aggregates.

Operating profit dipped by a third to US$12 million with operating EBITDA decreasing 17 per cent to US$29 million. The Panamanian business segment employed more than 2,800 employees over the last three years. It had US$281 million in total assets and US$73 million in total liabilities for 2024.

Cemex focuses on USA

The Panamanian divestiture is the latest Latin American transaction by Cemex as it realigns its interests to higher growth markets. The company completed the sale of its Dominican Republic operations to Cementos Progreso Holdings, SL on January 30 for a total consideration of US$928 million. Cemex sold its Guatemalan operations to the Holcim Group in October 2024 for a total consideration of US$212 million. Cemex had previously sold its operations in Costa Rica and El Salvador to Cementos Progreso for a total consideration of US$325 million in August 2022.

This leaves Jamaica, Trinidad & Tobago, Barbados, Guyana (these four markets are collectively referred to as Caribbean TCL), Colombia, Peru, Puerto Rico and Nicaragua as the other main markets in SCA&C (South, Central America and the Caribbean) region.

Cemex’s bolt-on growth strategy involves the company increasing its EBITDA growth through strategic sales and investments in core businesses and acquisitions in high growth markets. One part of this strategy is meant to have 40 per cent of the group’s EBITDA being driven by the USA. Cemex’s EBITDA contribution from the USA has moved 20 per cent in 2020 to 29 per cent in 2024.

Following the sale of its Panamanian business, Cemex increased its interest in joint venture Couch Aggregates, LLC which now makes it the majority owner. Cemex had a 49 per cent stake in Couch as of December 2024 with a US$55 million carrying value. Couch Aggregates is an aggregates-based business based in the Southeastern United States where it is involved in sand, gravel and crushed stone.

Cemex’s USA business saw revenue dip five per cent to US$2.50 billion for the six months period ending June 30. Operating EBITDA decreased 12 per cent to US$468 million due to lower volumes arising from increased precipitation in several markets and weakness in the residential sector.

Cemex’s divestitures coupled with the move to decrease its leverage has begun to pay off as the group received an upgrade to an investment grade credit rating by S&P Global Ratings and Fitch Ratings during 2024. That will assist with the company’s debt profile which currently stands at US$6.92 billion with an average life of 3.8 years.

These moves have also been rewarded to shareholders as the company returned to paying dividends in 2024. Cemex announced a US$120-million dividend payment programme in 2024 and increased it to US$130 million in 2025. These dividends are paid on a quarterly basis.

“Cemex’s portfolio rebalancing strategy is part of its broader commitment to providing the highest possible returns to its shareholders by being the best partner to its customers, having a laser-like focus on operational efficiency, and following a disciplined capital allocation strategy,” the Cemex press release stated.

Cemex bets on Jamaica

Cemex is betting big on its Jamaican subsidiary Caribbean Cement Company Limited (CCC) to spearhead growth in the domestic Jamaican market while also increasing exports across the region. CCC completed a US$42-million ($6.7-billion) upgrade at its Rockfort property in June 2025 to increase production capacity. The debottleneck project was completed over two years with upgrades to the kiln which was completed during the maintenance or annual shutdown programme.

Although the company’s third quarter report has yet to be released, CCC announced that the company produced 109,682 metric tonnes of cement in July. The company also produced a record 93,450 metric tonnes of clinker during the same month. Both were record production amounts for the company and surpassed the March 2021 record where more than 100,000 tonnes of cement was produced.

The ongoing increase in tourism related developments such as new hotels and higher bagged cement sales are the main drivers for CCC’s increased sales activity. The company also exported 3,000 metric tonnes of cement to Curaçao in September as it continues to ramp up sales to the rest of the region. CCC previously exported 3,400 tonnes of cement to the Turks and Caicos Islands in September 2023.

Although CCC’s second-quarter revenue increased six per cent to $8.13 billion, the 60-day shutdown pushed the company to import lower margin cement to satisfy the local market. That resulted in gross profit declining 60 per cent from $3.89 billion to $1.55 billion. After accounting for higher expenses, including a step up of two to three per cent in royalty fees to Cemex’s subsidiaries, CCC’s operating profit dipped 76 per cent from $3.11 billion to $730.78 million. The company’s consolidated net profit was $543.94 million. The annual shutdown took place in the third quarter of 2024 compared to the second quarter of 2025.

CCC also restarted operations at Rockfort Mineral Bath Complex Limited in August 2025 and will bring in revenue after the location was closed for an extended time. The Government of Jamaica entered a 25-year lease with CCC for the reopening of this property. The facility will receive upgrades to the tune of $57 million over the next five years.

CCC’s improved earning capacity in the last five years and lack of debt has seen it pay increasing dividends to its shareholders. The company paid a $2.0979 dividend totalling $1.79 billion on September 16 to shareholders on record as of July 28. CCC has paid $7.4642 in dividends since 2022 which translates to $6.35 billion paid to shareholders after a 17-year hiatus. Trinidad Cement Limited (TCL), a 69.83 per cent subsidiary of Cemex, owns 74.08 per cent of CCC while CEMEX OPERACIONES MÉXICO, S.A. De C.V. owns 4.96 per cent of CCC.

TCL has also paid TT$0.20 in dividends totalling TT$74.93 million since it restarted dividend payments in 2024. TCL previously paid dividends in 2008, 2016 and 2017.

Cemex is set to release its third-quarter report on October 28 and have its earnings call at 10:00 am. Cemex’s publicly listed subsidiaries usually release their quarterly reports in the same week the parent company’s report is published.