Latest news with #TitanCementInternational
Yahoo
09-05-2025
- Business
- Yahoo
Titan Cement International SA (TTCIF) Q1 2025 Earnings Call Highlights: Strong Sales Growth ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Titan Cement International SA (TTCIF) reported a solid start to 2025 with sales growth nearing 12%, driven by strong performance in the US, Greece, and a turnaround in Egypt. The company's debt leverage reached a record low of 0.5 times, providing flexibility in capital allocation decisions. Titan Cement International SA (TTCIF) completed the IPO of Titan America on the New York Stock Exchange, positively impacting debt leverage. Investments in logistics, alternative fuels, and maintenance have improved cost performance, partially offsetting adverse weather impacts. The company is experiencing growth in aggregates and ready-mix volumes, with aggregates growing by 18% and ready-mix by 6%. Net profit after taxes and minorities decreased by 8.7 million due to increased minority income in Titan America and higher taxes. Adverse weather conditions negatively impacted cement sales volumes in the US and Southeast Europe. Higher depreciation expenses and hyperinflation costs from Turkey affected pre-tax profit growth. The company faces macroeconomic uncertainty and soft demand in the US residential construction sector due to higher interest rates. Increased finance costs and income tax rates were partly attributed to hyperinflation and improved performance in Egypt. Q: Can you discuss the rationale for the sale of the eastern Turkish plant and its impact on revenue and profitability? Also, should we expect a similar year-on-year drop in Southeast Europe for the rest of the year? A: The divestment in eastern Turkey was due to its peripheral position in our traditional markets. We are maintaining our presence in western Turkey, which complements our other positions. The sale will reduce annual sales by about 80 million and EBITDA by 15-20 million. In Southeast Europe, adverse weather impacted Q1, but we expect demand drivers to renew, supported by infrastructure projects and EU integration efforts. Q: With the financial strength from the US IPO and upcoming investments, are you considering major acquisitions? In which regions? Also, will infrastructure spending offset the moderate performance in the US residential sector? A: We are exploring market opportunities for both organic and inorganic investments, focusing on the US and Europe. Infrastructure and commercial projects in the US are expected to offset residential sector weaknesses, with a mid-single-digit revenue growth and modest EBITDA improvement anticipated for 2025. Q: How much of the margin expansion at the group level comes from operational efficiencies versus resilient pricing? Also, can you provide more details on the competition in Southwestern Europe? A: Margin expansion is driven by a mix of market dynamics, with operational efficiencies and resilient pricing contributing. In Southwestern Europe, competition remains stable, with no major imbalances. Our focus is on cost efficiencies and new product offerings to maintain competitiveness. Q: Do you see any negative impact from the US tariffs on your exports, and what is your CapEx estimate for 2025? A: No immediate impact from US tariffs is visible, and we expect resilient pricing in the market. Our CapEx plan remains over 250 million, with potential adjustments based on project timelines and economic conditions. Q: What are the key pricing and volume trends in April and May, particularly in the US and Balkans? Do you still expect around 300 million CapEx this year? A: Pricing remains resilient, with scheduled increases in the coming quarters. CapEx is expected to be over 250 million, though not reaching 300 million, depending on project shifts and economic conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
28-02-2025
- Business
- Associated Press
Titan America Is Gearing Up For Continued Growth Following IPO
NEWMEDIAWIRE) - The construction industry appears to be poised for more growth in 2025 and beyond, buoyed by investments in the aging infrastructure, the reshoring of businesses in America and deregulation expected from the Trump administration, industry reports note. That's good news for Titan America SA (NYSE: TTAM), the U.S. subsidiary of Brussels-based Titan Cement International, which just went public on the New York Stock Exchange and now sports a market capitalization of nearly $3 billion. The company is aiming to take the U.S. construction industry by storm with what it sees as its innovative and green approach to producing cement, ready-mix concrete, blocks and aggregates. Claiming to pioneer the future of low-carbon, high-performing cement, Titan America says its approach produces cement that has 10% less carbon emissions than its competitors. That should be welcome news given America is facing a housing shortage that is only expected to get worse with the formation of more households that need a place to live. Over the next decade, housing starts (the construction of new units) on average are projected to be 1.6 million per year. Deregulation To Spur Growth On the commercial side, thanks to the Infrastructure Investment and Jobs Act, which was passed in November 2021 and commits over $1 trillion to fix the nation's ailing infrastructure, the construction industry is expected to see more growth. That's particularly true of green building materials which may play a role in the broader goal to lower overall emissions. If that's not enough, President Trump is expected to bring in a new era of deregulation to the construction industry that could speed up the process of approving and completing projects. 'The demographics, also the household formation, supports strong build-up in the construction industry, especially in the residential, but also the infrastructure. The deregulation that this administration is going to bring is going to shorten the time between planning a project and executing a project. We feel that this is going to accelerate the growth,' says Titan America CEO and president Bill Zarkalis. 'Tariffs? What Tariffs?' That's a sentiment shared by Titan America's investors who participated in the company's recent IPO. On its first day of trading, shares opened slightly higher than its IPO price of $16 per share and have continued to trade higher. The stock has remained slightly above its IPO price and the company is confident it will perform as the growth drivers play out and any uncertainty about tariffs impacting its business dissipates. According to Titan America, much of its production is on the east coast in Virginia, North Carolina, South Carolina and Florida. The imports it does rely on come from the European Union and other countries that shouldn't be impacted by tariffs, it reports. It doesn't hurt that Titan America isn't a small player in the U.S. construction market, with $1.6 billion in annual sales. It operates in regions that are reportedly expected to see future growth, including Florida, the Mid-Atlantic and Metro New York and New Jersey. 'We have a strong position and a proven business model that allows us to grow faster,' says Zarkalis. He points to the company's pipeline of ultra-high performance and low carbon products that differentiates itself from competitors. 'It allows us to take advantage of the explosive growth in regions growing faster than the average of the US.' IPO Boosts Titan America's Coffers Net proceeds of the IPO in which Titan America issued 24 million shares, were $136.8 million, which will be used for capital expenditures, investments in technology and to pursue strategic acquisitions, the company says. Titan Cement International received net proceeds of about $228 million from the IPO. Citigroup and Goldman Sachs & Co. acted as joint lead book-running managers for the IPO. Bank of America Securities, BNP Paribas, Jefferies Financial , HSBC, Societe Generale and Stifel Financial acted as bookrunners for the IPO. The IPO of Titan America comes as some European companies are looking at listings on the New York Stock Exchange for their U.S. businesses, drawn by higher valuations and a broader pool of investors to tap. Given Titan America's contribution to the economy, Zarkalis says the IPO made a lot of sense. 'We have grown to the point that we became 60% of Titan Cement International and we are a pure-play,' says Zarkalis. 'It made sense ahead of the explosive growth we expect to have Titan America carved out as a standalone public company, with its own strong balance sheet.'
Yahoo
07-02-2025
- Business
- Yahoo
Titan America valued at nearly $3 billion as shares rise 1.25% in NYSE debut
(Reuters) -Shares of Titan America rose 1.25% in their debut on the New York Stock Exchange, giving the Belgium-based cement producer a market capitalization of $2.99 billion. The company's shares opened at $16.2 apiece, compared with the IPO price of $16. The cement producer, together with its parent company Titan Cement International, raised $384 million by selling 24 million shares in its initial public offering, within the targeted range it had marketed earlier. Investor enthusiasm for new stock offerings has been buoyed by expectations of a more business-friendly regulatory climate under U.S. President Donald Trump, betting on a potential easing of restrictions that could spur a wave of fresh IPOs. Swiss cement giant Holcim said last year it would spin off its North American business into a separate U.S.-listed entity, while German-listed Heidelberg Materials has also considered listing in the country. Titan America supplies heavy building materials and services to resellers and construction contractors in the eastern region of the United States. The company recorded a net income of $129.5 million on revenue of $1.24 billion in the nine months ended Sept. 30, compared with a net income of $109.8 million on revenue of $1.19 billion a year earlier. Titan Cement International will control 87% of the voting power after the IPO. Citigroup and Goldman Sachs are the lead underwriters for the offering. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Cement producer Titan America seeks up to $3.3 billion valuation in US IPO
(Reuters) - Titan America is seeking a valuation of up to $3.32 billion in its New York initial public offering, the Belgium-based cement producer said on Tuesday. The IPO comes as European companies increasingly look to list their U.S. units in New York in search of deeper capital markets, higher valuations, and a wider investor base. Titan Cement International last year announced its intention to carve-out its U.S. business and list the unit in New York in early 2025 to raise funds for growth. The unit is offering 9 million shares, while parent Titan Cement is selling 15 million shares priced between $15 and $18 each to raise up to $432 million. Citigroup and Goldman Sachs are the lead underwriters for the offering. Titan America will list on the New York Stock Exchange under the symbol "TTAM."
Reuters
28-01-2025
- Business
- Reuters
Cement producer Titan America seeks up to $3.3 bln valuation in US IPO
Jan 28 (Reuters) - Titan America is seeking a valuation of up to $3.32 billion in its New York initial public offering, the Belgium-based cement producer said on Tuesday. The IPO comes as European companies increasingly look to list their U.S. units in New York in search of deeper capital markets, higher valuations, and a wider investor base. Titan Cement International ( opens new tab last year announced its intention to carve-out its U.S. business and list the unit in New York in early 2025 to raise funds for growth. The unit is offering 9 million shares, while parent Titan Cement is selling 15 million shares priced between $15 and $18 each to raise up to $432 million. Citigroup and Goldman Sachs are the lead underwriters for the offering. Titan America will list on the New York Stock Exchange under the symbol "TTAM." Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
