Carib Cement “Renders” Strong Earnings for Q3, Rebuilding Efforts to Support Growth.

  • Local Cement manufacturer, Carib Cement Company Limited (CCC), generated $2.29Bn in after-tax earnings for the three months ended September 30, 2025 (Q3 2025), 264.3% higher than in Q3 2024. The robust performance was supported by a mix of strong revenue growth and lower expenses in the absence of routine maintenance this quarter.
  • Q3 2025 revenues rebounded 30.1% year-over-year (YoY) to $8.07Bn, as better weather conditions likely supported increased construction activity, which translated to increased demand and sales of cement/clinker. This contrasts with lower revenue in Q3 2024, when heavy rainfall from Hurricane Beryl and other weather systems delayed the resumption of production after its annual maintenance shutdown. Notably, operational upgrades, particularly from its kiln expansion, led the company to historic production highs, allowing it to meet the high demand. In July, clinker volume reached a record 93,450 metric tonnes, and cement volume hit a new milestone of 109,682 metric tonnes¹.
  • Concurrently, Cost of goods sold (COGS) fell (9.6%), largely driven by enhanced production efficiency following the completion of CCC’s expansion project. Consequently, gross profit improved by 130.6% to J$4.05Bn and gross margin rose from 28.3% to 50.2%.
  • Operating costs were relatively flat as a 19.5% dip in administrative and selling expenses was offset by a 22.6% increase in distribution and logistics expenses. Net other expenses contracted by 73.6% to $0.28Bn supported by insurance recoveries and no inventory write-offs this quarter.
  • On the balance of higher gross profits and lower operating and other expenses, operating profit increased by 412.7% to J$3.20Bn and supported the expansion in net profits.
  • Despite the Q3 rebound, CCC’s 9M earnings still ended the year 1.8% below 9M 2024. This reflects a timing effect from the annual maintenance shutdown, which took place in Q3 last year but occurred in Q2 this year. As a result, Q3 2025 benefited from uninterrupted production, stronger sales and lower COGS. The relatively similar year-to-date performance therefore provides a more balanced view of CCC’s underlying profitability, once the maintenance impact is evened out across periods.
  • Looking ahead, CCC continues to make solid progress in expanding its plant capacity and post-Hurricane Melissa reconstruction efforts are expected to bolster demand in the coming quarters. Notably, the commissioning of its $6.7Bn plant expansion project in June has increased production capacity (total volume increase of over 9,600 metric tonnes), enabling it to reliably meet domestic demand and resume exports to regional markets. Furthermore, rebuilding efforts in the wake of the destruction wrought by Hurricane Melissa on houses, commercial properties and infrastructure in western Jamaica will likely result in a rise in demand for cement products.
  • Year-to-date, CCC’s stock price is up 7.8%, closing at J$91.10 on Tuesday, November 4th and a P/E of 13.20x. This is below the Main Market Energy, Industrial and Materials Sector average P/E of 15.94x.

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[1] The previous records were 89,600 in July 2022 and 103,869 in March 2021, respectively.

(Source: CCC Financial Release, NCBCM Research)