Carib Cement Shovels a 5-Fold Increase in Q2 Profit!

Caribbean Cement Company Limited (Carib Cement) posted consolidated net income of $2.70Bn for the quarter ended June 30, 2026 (Q2), nearly five times the $543.9Mn earned in Q2 2025. The swing largely reflects the absence of last year’s planned major maintenance shutdown. That shutdown had added approximately $920.0Mn in expenditure to the comparative quarter, mainly for excess consumables, hired manpower and imported cement used to keep the market supplied.
Q2 revenues climbed 14.5% to $9.31Bn, supported by resilient market demand and a record second-quarter sales volume of 110,647 metric tonnes, the highest ever recorded for the period.
With the shutdown costs not affecting this quarter, cost of sales fell 28.5% to $4.70Bn. Repairs and maintenance costs nearly halved to $462.9Mn, and raw materials and consumables dropped 48.9% to $491.7Mn. However, fuel and electricity almost doubled to $1.28Bn (+89.3%) and equipment hire rose 50.4% to $557.3Mn. Nevertheless, gross profit tripled to $4.60Bn from $1.55Bn, lifting the quarterly gross profit margin to 49.5% from 19.1% for Q2 2025.
Operating expenses were essentially flat at $831.0Mn (+1.2%), while other expenses rose 11.4% to $344.6Mn on royalty and service fees of $271.5Mn (+27.0%) and $28.0Mn in manpower restructuring costs. Operating earnings therefore surged more than eight-fold to $3.45Bn from $421.5Mn. Financial expenses fell 35.0% to $33.9Mn, and a $44.4Mn foreign exchange gain provided support.
That second-quarter surge built on an already strong Q1 2026 to deliver a stellar first half. The June quarter alone accounted for $2.70Bn, or 47.0%, of the $5.75Bn earned over the six months ended June 30, 2026, lifting six-month earnings by 126.4% relative to H1 2025. Management credited the outturn to improved operational efficiency, disciplined cost management and resilient market demand, and noted that the Company delivered its strongest EBITDA performance to date.
Looking ahead, expanded capacity mixed with robust recovery-related demand is expected to underpin continued strong performance for Carib Cement. Fresh off its kiln expansion and supported by its quasi-monopoly position, the Company is well placed to capitalise on the anticipated rise in cement demand. This positions it to meet the increased demand from post Melissa related reconstruction activity, while maintaining sufficient inventory to expand its market share across CARICOM markets.
The annual planned maintenance shutdown deferred from the first half is now expected in July 2026, with sufficient inventories in place to support uninterrupted supply. Consequently, third-quarter earnings should carry the associated repairs, consumables and hired-manpower costs that were absent in Q2, which could temper margins in the second half.
Carib Cement’s outlook is not without risks. Rising fuel and energy costs linked to geopolitical tensions remain the principal threat to margins. Management has indicated that mitigation strategies are being implemented to contain potential margin pressures and preserve operational stability. Weather is the second pressure point. Heavy rainfall temporarily impacted production in April through challenges with raw materials and equipment. It could continue to disrupt output, although measures have since been introduced to stabilise affected equipment and improve operating conditions.
As at the close of trading on July 29th, CCC shares closed at J$113.93, reflecting a 12.0% year-to-date increase. The stock has advanced 8.0% since July 27th, a move likely made in anticipation of the release of these financial statements. At this price, the shares trade at a P/E of 13.91x, which is below the Main Market Energy, Industrials and Materials Sector of 19.37x.

(Source: Caribbean Cement Company Limited Financial Statements & NCBCM Research)