TITAN Group release first quarter results

In Q1 2025, TITAN Group generated solid sales growth underpinned by firm pricing in all regions while price increases were implemented in some markets. Demand for TITAN Group’s downstream products continued to show strong dynamics with aggregates growing by 18% and ready mix by 6%, while cement sales were resilient and remained flat year-over-year. The impact of severe weather conditions in both the US and Southeast Europe for most of the quarter did weigh on sales volumes in these regions, however, the strong performance in Greece, as well as the significant rise in cement exports from Egypt, mitigated those effects at Group level. In a seasonal - for the industry - small quarter, sales grew by 2.4% versus Q1 2024 reaching €638.4 million, while thanks to operational efficiencies, EBITDA increased by 11.7% year-over-year to €122.6 million with growth shown in all regions, excluding Southeast Europe. Group EBITDA growth has been driven by robust performance in Greece and in the US. Greek profitability has benefitted from increased volume demand and prices, while in the US operational discipline and the completion of some key strategic investments as well as timing differences of maintenance stoppages contributed to margin expansion and profitability improvement. Performance in Southeast Europe recorded a y-o-y drop due to the adverse weather and the impact of a high comparable base in the previous year due to an unusually mild winter in Q1 2024. In the East Mediterranean region, Egypt performed a turnaround, reflected in both improved domestic sales volumes and higher exports, while Turkey suffered from hyperinflation and increased taxation. Pre-tax profits grew by 2.9%, despite higher depreciation expenses and hyperinflation costs. Net profit after taxes and minorities (NPAT) was down by €8.7m, as a result of the increased minority income in Titan America and significantly higher taxes in the East Mediterranean.

CapEx remained high at €52.5 million for another quarter, consistent with last year’s levels, driven by continued investments in sustainability. This includes expanding the use of renewable energy across regions, integrating cementitious and alternative materials into the supply chain, and advancing CCS preparation works in Greece, all while achieving key milestones. Within February 2025, TITAN Group announced the establishment of a joint venture in India focusing on sourcing, processing, marketing, and distributing supplementary cementitious materials (SCMs) globally, while in April 2025, TITAN Group acquired a new aggregates quarry in Thessaly, in the region of Central Greece, expanding the Group's reserves base. This move follows TITAN's acquisition in 2024 of an aggregates quarry in Attica, as well as the finalisation of a long-term commercial agreement in the Southern Peloponnese, securing additional reserves.

A milestone event took place this past quarter with the successful completion of Titan America’s IPO on the NYSE in February 2025, raising total gross proceeds of $393 million for the Group. As of March 11, 2025, Titan Group holds 86.7% of the total outstanding Titan America common shares. In February 2025, Titan also announced the divestment of its 75% share in Adocim, in the Eastern part of Türkiye, with cash proceeds of $87.5 million, with the transaction expected to be finalized as planned within summer 2025.

As of May 5, 2025, and following an EGM approval, “Titan Cement International S.A.”, parent company of the Group, changed its Company name to “Titan S.A.”, adopting a name that better reflects its broader and more-forward thinking vision, in line with its commitment to sustainability and the delivery of value-added products and solutions for a sustainable future.

For the first quarter of 2025, TITAN Group have reported an Operating Free Cash Flow of €10 million, while TITAN Group’s net debt stands at €280 million at the end of March 2025 versus €622 million at year-end 2024, thanks to the funds raised via the recent IPO of Titan America. An ad-hoc increase of the annual dividend by €2.00 per share to a total dividend of €3.00 per share, will be proposed in the AGM, taking place today, with the payment date being July 3, 2025.

Lastly, the Board of Directors at its meeting on May 7, 2025, decided the initiation of a new share buyback programme, for a total value of up to €10m, which will commence after the termination of the current one, at the end of June 2025, and is expected to be completed by March 31, 2026.

Read the article online at: https://www.worldcement.com/europe-cis/09052025/titan-group-release-first-quarter-results/