Titan Cement 1Q FY25: US Tariff Impact Could Be Muted
During 1Q FY25, Sales came in at €638.4m, up 2.4% YoY thanks to sustained volumes and pricing. EBITDA came in at €122.6m, up 11.7% YoY thanks to strong performance across the US, Greece and Egypt and as a result of Capex driven incremental op. efficiencies. However, net result was down -16.6% and came in at €46.7m due to incremental taxes of €7.0m and €4.2m attributable to minorities at Titan America. We remind that Titan America was listed on the NYSE during Feb'25 which yielded in $393.0m of gross proceeds and a minority interest of 13.3% in Titan America. Titan Cement completed a quarry acquisition in Greece during Apr'25 and established a new partnership with JAYCEE in India while divesting 75% of Adocim in East Turkey, expected to close during summer 2025. We remain optimistic about Titan Cement's prospects in the US because only 1/3rd of US Sales is imported, which are currently subject to the flat 10% tariff. Additionally, the US is a net import market in which ~24% of consumption is imported, implying that local cement production alone is unlikely to suffice demand. We upgrade Titan to an ACCUMULATE rating and reiterate our €45.0 TP.Titan Cement International SA is a Belgium-based international cement and building material producer. The Company's activities include the production, transportation, and distribution of cement, concrete, aggregates, fly ash, mortars and other building materials. The Company reports its activities into four geographical business segments: Greece and Western Europe, North America, South East Europe and Eastern Mediterranean. Apart from the transportation and distribution, the Company also transfers its know-how through collaborations with customers, business partners, local communities and Academia.
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