Titan Cement International SA: Full Year Results 2024

Strong performance in the US and Europe led to record profitability

BRUSSELS–(BUSINESS WIRE)–Regulatory News:

Titan Cement International SA (Euronext Brussels, Euronext Paris and ATHEX, “TITC”) announces the fourth quarter and full year 2024 financial results.

2024 Highlights

• Group sales up by 3.8%, at €2,644m, recording the 4^th consecutive year of growth, with increased volumes across all product lines and sustained pricing; EBITDA margins up 120bps (L-f-L adjusted). All regions posted top-line growth, with the US and Europe at the forefront, contributing more than 90% of Group sales.
• Record EBITDA performance of €592.1m, up by 9.6%, Like-for-Like adjusted for €12m non-recurring costs, leading to improved profitability margins, with gains from operating efficiencies and lower solid fuel costs, as well as higher use of alternative fuels. NPAT was up by 17.3% at €315.3m and EPS at €4.2/share, both Like-for-Like adjusted (including a €17m goodwill impairment charge). Return on Average Capital Employed (ROACE) grew to 17.8% (L-f-L).
• Leverage ratio at 1.02x with Net Debt dropping to €622m, following solid cash generation. In 2024, S&P upgraded Titan Group’s long-term issuer credit rating to “BB+ with stable outlook” and Titan Group launched a Sustainability-Linked Financing Framework.
• CapEx closed at a 15-year high, at €251m, channeled mainly to growth projects across the supply chain, use of alternative fuels, digitalization and innovation. Committed to our large-scale carbon capture project IFESTOS near Athens, we signed a Front-End Engineering Design contract.
• Awarded Leadership Status on climate change by CDP. Recognition by the Financial Times as one of Europe’s Climate Leaders and by TIME Magazine as one of the World’s Most Sustainable Companies.
• Developed new digital solutions and further accelerated existing ones (Real-Time Optimizers), leading to increased production and energy consumption savings. On track to digitalize 100% of our plants by 2026.
• Accelerated execution of Strategy 2026, on track to reach the targets set in advance, with bolt-on investments in the US and Greece and expansion of our sources of supplementary cementitious materials (SCMs) with JVs in India and Europe. Corporate Venture Capital Fund invested in four new materials startups.
• In February 2025, the Group completed a major strategic move with Titan America’s IPO and listing on NYSE, raising gross proceeds of $393m.
• In February 2025, Titan Group entered an agreement to divest its share (75%) in Adocim in East Türkiye.
• Following the high profitability achieved and the liquidity raised through the successful IPO placement, the Board is proposing a special ad-hoc increase of the annual dividend by €2 per share to a total of €3 per share.
• Positive Outlook, thanks to our attractive US and European positions, anticipating volume growth and resilient pricing, offsetting increased production and distribution costs.

Marcel Cobuz, Chairman of the Group Executive Committee

“Our strong performance for another year underscores the Group’s ability to execute its strategy, delivering growth and resilience in an evolving and volatile market environment. In 2024, we have further strengthened our presence in our key US and European regions, advanced our digital and decarbonization initiatives and expanded our customer-centric products and solutions. These achievements are a testament to the dedication and expertise of our global teams, who continue to drive operational excellence and innovation. As we build on this momentum, we remain committed to our 2026 Green Growth Strategy, creating long-term value for all our stakeholders through sustainable and profitable growth.”

Michael Colakides, Managing Director of TCI & Group CFO

“2024 has been a year of record financial performance, marked by revenue and over-proportional profitability growth and further strengthening of the balance sheet. Our disciplined execution and solid market positioning enabled us to grow sales across all regions while delivering profitability growth, with the U.S. and Europe accounting for more than 90% of Group EBITDA. We have remained focused on growth investments, energy efficiency and logistics/capacity infrastructure, reinforcing our foundation for the future. The funds raised from the IPO of Titan America on the NYSE in early 2025 will support Titan Group and Titan America in executing growth strategies, pursuing strategic acquisitions, and strengthening the balance sheet.”

* Figures in brackets represent the reported EBITDA, NPAT, and EPS before full-year adjustments for non-recurring one-off costs. EBITDA is adjusted for €12m related to the preparation of the US IPO and an early retirement program in Greece and NPAT & EPS are adjusted for the abovementioned €12m and for a €17m goodwill impairment in Türkiye.

TITAN Group – Review of the year 2024

2024 marked another record year for the Group, exceeding the results achieved in 2023 with both Titan’s sales and profitability growing. Group sales in 2024 totaled €2,644 million, a 3.8% increase year-over-year, with all our regions contributing to this growth, with the US and Europe leading the way for another year. EBITDA (LfL) closed at €592.1 million, up by 9.6%, excluding one-off non-recurring costs of €12 million, driven by a combination of higher sales volumes, sustained pricing, and gains from operational efficiencies in the areas of energy cost management and digitalization. Increased usage of alternative fuels, which reached record levels of above 24% in December 2024, and reduced solid fuel costs added to the improvement of our profitability margins. The group’s commercial excellence was shown in projects across our geographies, spanning from participation in the new metro of Thessaloniki in Greece to the Baccarat waterfront residences in Miami and a railway in Serbia connecting the airport with the EXPO 2027 facilities. Strong performance was exhibited in our operations in the US, despite the disruptions caused by the adverse weather throughout most of the second half of the year. Greece experienced strong volume growth across products, and Southeast Europe continued to grow, maintaining pricing and high levels of sales. The Eastern Mediterranean demonstrated solid demand, though the devaluation in both countries’ currencies weighed on the region’s profitability. The Group’s net profit after taxes and minority interests (LfL) for the year, adjusting for a €17m charge for the impairment of goodwill in Türkiye, grew by 17% to €315.3m, resulting in a rise in Earnings per share (EPS LfL) to €4.2/share from €3.6/share in 2023. Accordingly, Titan’s return on average capital employed (ROACE) in 2024 increased to 17.8% compared to 16.9% in 2023.

During a seasonally lower quarter for the industry, sales in Q4 grew by 1% year-over-year reaching €660 million, despite poor weather on the Eastern Seaboard of the US and against a very strong 4Q 2023, thus contributing to full-year growth, supported by firm pricing and robust volumes at a Group level, with significant increases deriving from downstream products. Q4 EBITDA (LfL) reached €138m, as persistent adverse weather – along with the impact of hurricanes – temporarily delayed projects in the U.S. Cost pressures from higher distribution and raw material costs further weighed on the quarterly Group result.

Significant volume growth was achieved at Group level in 2024 across all product categories, upstream and downstream, on the back of solid demand and despite the unfavorable weather in the US -persisting for a great part of the second half of the year- and the decline of the construction activity in Western Europe. The Group’s domestic cement sales increased by 2% to 17.8 million tonnes. All Group’s exports were directed to TITAN’s own terminals, mainly to Titan America in the US, with lower year-over-year exports directed to our European terminals in France, UK, and Italy, reflecting the slowdown in construction activity in Western Europe during 2024. While exports from Türkiye to the TITAN US operations slowed, exports to third parties from Egypt picked up significantly. Ready-mix volumes exhibited positive momentum for another year with increased demand from both the US and Greece, growing at 6% and reaching 6.3 million m³ at Group level. Aggregates grew by a significant 10% to 21.9 million tonnes, driven by substantial demand for infrastructure projects in Greece. The Group’s building blocks and fly-ash volumes have also increased compared to 2023.

EBITDA, NPAT & EPS amounts mentioned in this report are on a Like-for-Like basis after adjustments for non-recurring one-off costs.

Financing & Investments

The Group continued to grow organically and improve its profitability by executing a significant investment plan of €251 million at the end of 2024 – a 15-year high- in pursuit of its ambitious growth and transformation strategy, with more than $500 million having been spent in the US region over the last four years. In line with TITAN’s Strategy 2026, the Group accelerated its execution, improving its logistics capabilities and completing bolt-ons in the US and Greece, including four new aggregates’ quarries and one new clay quarry securing supplementary cementitious materials (SCMs) reserves, while new joint-ventures have recently been formed in India and Europe. The bolt-ons have complemented our 2023 investments in SCMs of “Aegean Perlites” on the Greek island of Yali and of the “Vezirhan Pozzolana Quarry” in East Marmara in Türkiye. The Group further progressed on its decarbonization pathway by inaugurating the calciner in its flagship plant near Athens, while continuing to mature its carbon capture project IFESTOS at the same plant, benefitting from a grant of €234m from the Innovation Fund, among others by signing a Front-End Engineering Design (FEED) contract, IFESTOS aims to significantly reduce ca. 20% of Group’s Scope 1 net CO₂ emissions. Following a $62 million grant from the US Department of Energy, Titan has also been developing a calcined clay production line in the Roanoke plant in Virginia. Extensive CapEx allocation aiming at the optimization of our supply chain continued in 2024, including the establishment of new ready-mix units and the modernization of our ready-mix fleet in the US, as well as the installation of ready-mix units in strategic commercial locations in Greece.

The Group’s Operating Free Cash Flow (OFCF) closed high at €299 million in 2024.

The Group’s leverage declined, with net debt standing at €622 million, a reduction of the Net Debt/EBITDA leverage ratio to 1.02x (2023: 1.2x). Titan’s credit ratings improved during the year with Standard & Poor’s Global Ratings upgrading Titan’s long-term issuer credit rating by one notch up, from “BB with positive outlook” to “BB+ with stable outlook” achieving the same rating Fitch had given Titan in 2023, reflecting the Group’s solid operating performance and confirming our ongoing capability to finance the 2026 Green Growth Strategy. Finally, in September 2024, we proceeded with the launch of a Sustainability-Linked Financing Framework.

In February 2025, Titan Group announced the divestment of its 75% share in Adocim in the Eastern part of Türkiye, with $87.5m cash proceeds. The Group will continue to operate cement grinding and supplementary cementitious assets in the country.

In February 2025, the Group completed the IPO of Titan America SA, listing its shares on the NYSE and raising a total gross amount of $393 million. As of 11 March 2025, Titan Group owns 159,781,709 common shares of Titan America, representing 86.7% of the total outstanding common shares.

Resolutions of the Board of Directors – Dividend payout

Within 2024, the €20 million share buy-back program, initiated in November 2023, was concluded in August 2024, while another share buy-back program of an equal amount was launched on 28 August 2024 and is expected to end by 30 June 2025. In 2024, a total of 757,721 shares were acquired for an amount of €22,442,612 and are held as treasury shares. On 31 December 2024, Titan owned 4,097,622 treasury shares, representing 5.23% of the total voting rights.

Given the strong profitability achieved in 2024 and taking into account the liquidity secured through the IPO of Titan America, the Board of Directors is proposing to the Annual General Assembly of Shareholders, scheduled to take place on May 8^th, 2025, an ad-hoc increase of the annual dividend by €2.00 per share to a total dividend of €3.00 per share, with the payment date of July 3^rd, 2025.

Regional review of the year 2024

* Figures in brackets represent the reported EBITDA before full-year 2024 adjustments for non-recurring one-off costs of €12m, related to the preparation of the US IPO and an early retirement program in Greece

USA

Titan America sustained a high level of sales and recorded growth in EBITDA profitability despite unfavorable weather conditions that hit the Eastern seaboard in the second semester, including a number of severe hurricanes, heavy rainfall and snow in Q4. Leveraging our vertically integrated business model provided us with the necessary strategic flexibility and reliable production to help meet our customers’ needs, even in times of market disruption. Despite the negative impact of weather-induced work disruptions and project delays, our sales managed to outperform the market. Moreover, our vertically integrated business model allowed us to reliably supply our customers with high-quality products, up and down the value chain, with the use of our extensive, high-capacity logistics network. As a result, the year saw increased sales in the downstream market with an expansion in ready-mix, blocks, and fly ash sales. Pricing momentum remained strong, with the pricing contribution and the lower fuel energy costs more than offsetting increased maintenance and labor costs, eventually improving EBITDA margins. EBITDA margins were also supported by operational efficiencies, our investment in digitalization and automation, and the resulting lower production costs. Weather effects notwithstanding, underlying market trends remained solid, with materials’ consumption being driven by projects continuing to roll out under the Infrastructure Investment and Jobs Act and non-residential private projects. The industrial sector continued to benefit from large investments in our states as manufacturing and onshoring investments progressed at an accelerated pace. Residential demand weakened in the second half of the year, especially in Q4, as the interest rates reduction expectations remain unfulfilled. In 2024, we forged ahead on further strengthening our US operations by progressing on several projects: we finalized the acquisition of aggregates and SCMs quarries in Virginia, which expands our reserves and increases our capacity, and strengthened our ready-mix business by growing our distribution fleet. Titan America sales increased for another consecutive year by 3%, reaching ca. $1.64 billion, while EBITDA (LfL) for the year reached $368 million, up by 15% compared to $319 million in 2023, adjusting for $9 million one-off costs related to the US IPO preparations. In Euro (€) terms, sales increased to €1.52 billion, and EBITDA (LfL) reached €341 million, adjusting for the aforementioned US IPO preparation costs, versus €296 million in 2023.

Greece, W. Europe & Corporate

Performance in Greece was reflected in another very strong quarter, closing the year with both domestic cement consumption and Group’s sales volumes growing double digits. Greek domestic growth dynamics have also flowed downstream, translating into a multiplier effect in the consumption of aggregates, ready-mix and mortars, which also increased double-digits and contributed positively to margins. Export sales to our Western Europe terminals however dropped, the result of a much more subdued market environment in those economies. Domestic cement pricing held firm during the year, with price increases realized in the downstream segments. Nevertheless, the decline in international cement trading prices from recent historic highs negatively impacted the region’s profitability. Overall, growth was balanced across all main construction segments and maintained its strong momentum throughout the year. The residential segment continued to drive demand together with the private non-residential segment with investments across varying types of commercial and industrial projects. After another record year for Greek tourism, preparations are in full swing for the upcoming season and construction activities are ongoing across the Greek islands. In addition, Crete has seen a surge in demand for infrastructure projects, including major roadworks and the new airport. Construction activity has remained strong throughout the year in the capital region of Attica, which is the most cement-intensive area in Greece. Within Q4, major infrastructure projects picked up pace across mainland Greece, such as the Thessaloniki Flyover, the SNF Hospital of Thessaloniki and the Patras-Pyrgos highway in the Peloponnese. Investments in Greece continue, with an agreement to acquire an aggregates quarry already finalized and other opportunities in this area being evaluated.

In Greece, thermal substitution rates increased to 39% from 32% in 2023, thanks to the operation of the pre-calciner at the Kamari plant. Additionally, the Group has been installing more silos across its plants to support the growing use of a wider range, including lower-clinker products and enhance the efficiency of its logistics network. Continuing its efforts, our subsidiary INTERBETON introduced a new range of ready-mix concrete products, VELTER™, which offer superior durability while reducing carbon emissions by up to 30% compared to the standard products currently available in Greece. Overall, sales for Greece and Western Europe in 2024 increased by 9% to €444 million, while EBITDA (LfL) reached €58.2 million, versus €65.4 million last year, as a result of increased electricity and raw materials costs, as well as on account of lower export prices and adjusting for an early retirement program in Greece incurring one-off costs of ca. €4 million.

Southeastern Europe

Following a slowdown in the third quarter of 2024, the Southeast Europe region regained its momentum in the last quarter of the year and closed the year with improved sales and profitability, while overall volumes for the year remained stable at high levels, amidst mixed performance across countries and different market segments. Given diverse market trends, the combination of overall price resilience, the drop in energy costs as well as the efficiency gains obtained by the Group’s recent investments in renewable energy sources and alternative fuels, improved the Group’s cost structure and led to increased margins. Infrastructure and residential propelled the construction sector in Serbia, as did Kosovo which has been helped by growing remittances and a trend towards urbanization while road and rail works connecting its adjacent countries continue to be developed. Albania remains a market driven by residential construction, and 2024 was characterized by increased pressure from imports and a recovery of domestic competition’s operations. North Macedonia is seeing increased residential projects, while due to government changes at the beginning of the year, there have been delays in infrastructure projects. While EU funds have remained under-utilized, the market in Bulgaria is very much driven by residential and commercial development supported by a strong labor market. Aiming to replicate the success of its alternative fuel investments executed so far in the region, the Group embarked on the permitting application process in Kosovo and installed a second line for alternative raw materials in Albania. Alternative fuel consumption also doubled in the year in North Macedonia, with a second line having come on stream over the year. The Group’s solar plant in Bulgaria which entered operation in July will cover ca. 13% of the Group’s electricity consumption needs in the country. Sales in the region increased by 2% compared to 2023, to €432 million, while EBITDA grew by 15%, closing the year at €167.6 million, compared with €145.8 million in 2023.

Eastern Mediterranean

In the Eastern Mediterranean region, the transition to healthier macroeconomic conditions continues, albeit at a rather slow pace. In Egypt, domestic cement consumption remained stable as the production quota regime remained in place, but prices recorded a substantial increase in the last quarter of the year. Demand was sustained through private activity while public projects were in the guise of small projects and road works in the periphery, in the absence of any large public outlays. Our operations in Egypt recorded a good performance, while our exports have increased significantly in the year. Thermal substitution rates at both plants increased above 30%. The Group has also largely switched to blended types of cement, establishing a strong brand presence recognized by the market in the process.

In Türkiye, domestic cement consumption grew for another year and Group sales followed the market growth. In the absence of public works, the largest portion of cement consumption in the country continued to be drawn in by the earthquake rebuilding activities. Our exports from Türkiye to the US have decreased, accounting for the decline in the region’s profitability. The Group also continued to develop sales out of its recently acquired pozzolana quarry, in addition to the quantities consumed internally.

The region recorded FY24 sales of €250 million, up by 4.4% versus 2023, thanks to increased domestic volumes in both Egypt and Türkiye, and much higher exports from Egypt. EBITDA reached €25.7 million, compared to €33.2 million in 2023, due to the devaluation of both currencies, impacting profitability (+9% growth in local currencies).

Brazil (Joint Venture)

Domestic cement consumption increased by 4.2% in 2024, while in the Northeast, the region where our JV Apodi operates, a 7.5% increase was recorded. The positive performance is attributed to the continued improvement in the labor market and the increase in disposable income, while the real estate market continued to expand from the second quarter onwards, driven by the resumption of construction work under the extensive affordable housing program.

Contacts

Phone: +30 210 2591257

email: ir@titancement.com

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