Grupo Carso, S.A.B. de C.V. (BMV:GCARSO.A1)
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At close: May 8, 2026
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Earnings Call: Q1 2025

Apr 29, 2025

Angélica Piña
Investor Relationships Manager, Grupo Carso

Good morning, everyone, and welcome to this webinar to discuss the results of Grupo Carso for the first quarter of 2025. Before we begin, I would like to remind you that this event is being recorded, and the information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties, and actual results may differ materially. Hosting this conference today is Mr. Arturo Spínola, Chief Financial Officer of Grupo Carso, and me, Angélica Piña, of Investor Relations, who will take you briefly through the first quarter's financial results, and then we will take your questions. Consolidated sales of Grupo Carso totaled MXN 46 billion, remaining stable in the quarter. Grupo Condumex, Carso Energy, and Elementia/Fortaleza increased revenues 20.3%, 16.5%, and 10.6% respectively, related to higher volumes of industrial products, gas transportation, and construction materials.

On the other hand, it is important to mention that Zamajal, the hydrocarbons operation which started consolidating in the second quarter of last year and is in developing process, contributed with additional MXN 570 million. Grupo Sanborns and Carso Infraestructura y Construcción decreased sales 2.4% and 2.8% respectively due to a slowdown in consumption and fewer infrastructure projects. Consolidated operating income totaled MXN 3.2 billion versus MXN 5.5 billion in the first quarter of 2024. This reflected the higher cost of goods sold affected by inflation and the exchange rate, and higher expenses related to the startup of hydrocarbons operations. Grupo Condumex and Carso Energy increased 19.9% and 22.9% its profitability, while Grupo Sanborns, Carso Infraestructura y Construcción, and Elementia/Fortaleza reduced their operating income. Consolidated EBITDA for Grupo Carso from January to March 2025 was MXN 5.5 billion, compared to MXN 6.9 billion a year ago.

The EBITDA margin went down 320 basis points from 15.2% to 12%. Consolidated controlling net income decreased 45.9%, totaling MXN 1.6 billion, lower than MXN 3 billion last year, reflecting lower operating results. Regarding performance by division, Grupo Sanborns recorded lower sales with a 2.4% decrease related to the calendar effect of Easter week and the slowdown in consumption. Operating income totaled MXN 521 million compared to MXN 878 million a year. This reduction in profitability was explained by higher costs and expenses. EBITDA went down 22.1% with an EBITDA margin of 6.7%. Net income reduced 46.5%. Regarding the sales floor, the retail area decreased 2.1%, comprising 448 stores. In the industrial division, Grupo Condumex sales increased 20.3%, reaching MXN 13 billion versus MXN 10.8 billion in the same quarter of last year.

This improvement in performance came from a higher exchange rate, higher copper prices, and dynamism in the construction and automotive cables and harnesses. Regarding operating income and EBITDA, these items reached MXN 1.4 billion and MXN 1.5 billion, a higher profitability compared to MXN 1.1 billion and MXN 1.3 billion pesos a year ago respectively. Carso Infraestructura y Construcción sales totaled MXN 6.7 billion. The divisions that had the best performance were Civil Construction, which improved due to the progress in construction of private projects, and Pipelines, where higher telecom network installations were carried out abroad. The performances mentioned before could not offset lower volumes observed in manufacturing and services for the oil and chemical industry, with fewer turnkey comprehensive works for oil land drilling, and Infrastructure, where large projects were concluded without new project bids. The operating income and EBITDA in CICSA went down 91.1% and 18.3% respectively.

The controlling net result was a loss of MXN 137 million compared to a net income of MXN 740 million a year ago. The projects currently in place are construction of shopping centers, hospitals, apartment buildings, telecom installation services, the conclusion of the Mitla-Tehuantepec Highway, onshore and offshore drilling services. The backlog totaled MXN 20.2 billion compared to MXN 32.2 billion a year ago. The sales of Elementia/Fortaleza increased 10.6% from MXN 7.8 billion in the first quarter of 2024 to MXN 8.7 billion in the first quarter of 2025. This was related to the peso appreciation since most of these divisions' revenues are determined in U.S. dollars, coupled with higher volumes of construction products. On the other hand, cement in Mexico had slow demand at the beginning of the year, and in the U.S. , the sale of Giant Cement to Heidelberg Materials was completed.

Operating income decreased 4.5% while EBITDA grew 2.2%. Carso's energy performance in the first quarter improved 16.5% with total sales of MXN 803 million. This was attributable to the startup of the compression station and an increase in dollar tariffs from natural gas transportation services from the U.S. and Mexico clients. The operating income and EBITDA of Carso Energy were MXN 609 million and MXN 718 million, with increases of 22.9% and 24.8% respectively. The net result totaled MXN 369 million, with an 88.7% increase. Lastly, beginning in the second quarter of last year, the oil operations to explore and exploit the Ichalkil and Pokoch fields in the Campeche Coast are being recorded and consolidated within the Grupo Carso numbers. Additional MXN 570 million in revenues were recorded at the Zamajal division. Due to the startup activities, the operating and EBITDA results were losses of MXN 417 million and MXN 103 million respectively.

With this, I finish my general comments to proceed to the Q&A session. Thank you.

Arturo Spínola
CFO, Grupo Carso

Please, for the Q&A session, we are going to switch to Spanish in order to be clearer, and if someone has a question, we can translate later. Please. Go ahead, please.

Angélica Piña
Investor Relationships Manager, Grupo Carso

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De Carlos Alcaraz. [Foreign language]

Hello. Thank you very much for the call and for taking my questions. First, if you can give us more color on the percentage of backlog that corresponds to contracts with CFA or federal government, and how many correspond to international contracts in CICSA. If you could share with us the annual EBITDA you expect from Centauro once it is stabilizated.

Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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Arturo Spínola
CFO, Grupo Carso

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Angélica Piña
Investor Relationships Manager, Grupo Carso

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