Grupo Cementos De Chihuah

Greetings, and welcome to the GCC Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star 0. It's my pleasure to turn the call over to Sahory Ogushi, Head of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining. With me today are Enrique Escalante, our Chief Executive Officer, and Maik Strecker, Chief Financial Officer. The earnings release detailing this quarter's results was released yesterday after market close and is available on DCC's IR website. This conference call is also being broadcast live within the investor section at gcc.com. And both the webcast replay of the call and transcript will be available on the same site approximately one hour after the end of today's call. Before we begin, I would like to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by this forward-looking statement. Factors that could cause these results to differ materially are set forth in yesterday's press release and in our quarterly report filed with the Mexican Stock Exchange. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update this statement as a result of new information or future events. With that, let me now turn the call over to Enrique.

Thank you, Sahory, and good morning, everyone. At GDC, we manage the company with a long-term view. Our markets are cyclical and can move quarter to quarter, but our strategy is firm and gives us flexibility to adapt to short-term conditions without changing our mid- and long-term view. We focus on disciplined execution, operational reliability, and capital allocation across cycles. And this approach guided our decisions throughout the year. During 2025, we operated in an environment where external conditions influenced the pace and timing of customer decisions. As conditions evolved, we revised our expectations in December. From that point forward, our focus sharpened with an increased emphasis on cost management and Operational Discipline. And we delivered record sales for the full year of U.S. $1.4 billion, reflecting the strength of our operational model, disciplined execution across the network, and particularly strong performance in the U.S. These results demonstrated resilience and demand across our market. From an earnings standpoint, it is also important to keep perspective. 2024 set a record benchmark for margins and returns, and that level remains the reference point for where we expect the business to operate over the cycle. While we did not replicate those record levels in 2025, we came very close. and we continue to position the company to move closer over time as efficiencies, cost actions, commercial initiatives and network investment take us to new records. The fourth quarter did not introduce new dynamics. Instead, it confirmed the trajectory we outlined earlier in the year. Our operations were reliable, Customer relationships remained strong and performance reflected the same mix and activity dynamics we managed in 2025 with improved execution translating into record quarterly results. Our people's strategies remain a constant source of strength in 2025. We continue to invest in safety, training, and Leadership Development, reinforcing a culture of operational discipline and accountability. Safety performance improved again in the pool quarter, and full year results reflected continued progress across key indicators, with recordable incidents, including lost time incidents, declining 10.5% year over year. Our continued recognition as a great place to work further reflects the strength of our culture and employee engagement and the consistency with which we have integrated these values across the organization. Training is embedded across the company with structured programs aligned to specific plans and functional needs through the GCC Training Institute We deliver more than 15,000 hours of training during the year. This investment supports reliability today and prepares our team for the ramp up of Odessa and the next phase of growth. Progress under our PLANIX strategy continues steadily. In 2025, we increase blended cement production expanded the share of alternative fuel in our fuel mix and continued to reduce our clean care factor. These actions support cost efficiency and operational resilience while contributing to incremental progress in environmental performance. In addition, our Pueblo and Rapid City plants once again received ENERGY STAR certification placing them among the top 25% of cement facilities nationwide for electricity efficiency. As we move into 2026, our focus remains on executing these initiatives pragmatically, prioritizing efficiency, reliability, and long-term value creation. Turning now to our growth strategy. Our focus on execution and network strength is reflected in how the business performs across our key markets. In the United States, ReadyMix was the primary driver of growth in 2025, supported by strong project activity. This project-led demand generated consistent downstream pull for cement and reinforce the strength of our integrated operational model. Ready Mixed Volumes reached record levels in 2025, increasing 31.5%, while Cement Volumes increased 2.6% during the year. As a result, we outperformed the U.S. cement market in 2025, driven by disciplined project execution and Commercial Management. Operationally, this translated into high utilization across our operations, supported by investments in mobile capacity and execution capability. Energy-related projects, including wind farm and associated transmission, continue to provide volume support throughout the year. Infrastructure activities remain stable through the quarter and continues to provide visibility into 2026, supported by multi-year funding programs and ongoing execution at the state and local level. As we enter the new year, we remain proactive and focused in identifying project opportunities, reinforcing the depth and visibility of our commercial pipeline. Residential constructions remain under pressure. Mortgage rates have not sustainably broken below 6% since September 2022. As a result, we do not expect a meaningful improvement in residential activity during the first half of 2026. Oil and gas activity softened during the year and continued to soften in the fourth quarter. Reflecting the current oil price environment, this segment is expected to soften further in the near term before improving. While this affects mix, it does not alter our long-term positioning within the network, as we rely on the flexibility of our plants to ship different types of cement and adapt to market demand. Throughout the year, Our commercial focus remained on protecting margins and returns. While market conditions limited pricing momentum during 2025, the pricing increases announced entering 2026 reinforced our focus on offsetting cost inflation and improving profitability over time. In Mexico, Four-quarter performance was in line with our expectations. Residential demand and back cement continue to provide stability, support, and margin. The federal housing initiative is beginning to take shape in certain regions, and as projects move into execution, we expect to be able to quickly increase shipments as its impact materializes during the first quarter of 2026. Infrastructure in Mexico is an area of growing optimism. Historically, the first year following elections is complex, but during the quarter, wisdom projects advance with a more meaningful contribution expected in 2026 as execution accelerates. In addition, mining-related comparisons normalized in November. Removing a headwind that affected volumes last year. We expect the segment to perform broadly in line with 2025 levels going forward. Industrial customers remain cautious, advancing projects gradually and using this period to prepare to move more decisively as visibility improves. We're cautiously optimistic about industrial activity improving in the second half of 2026 as trade discussions become clearer. Capital allocation in 2025 remains consistent with our long-term priorities. We continue to focus on ensuring that recent investments in cement distribution and aggregate operations across our network reach their full potential. allowing us to ship product to more destinations, easing the pressure to rely on single markets with a larger volume. In parallel, the Odessa expansion continues to progress on schedule and within budget. Our M&A posture remains unchanged. We continue to evaluate opportunities that strengthen the existing network and meet our strategic and financial criteria while maintaining balance sheet strength and flexibility. As we look ahead, 2026 will be a pivotal year for GCP. With Odessa completing construction and entering ramp up, the company moves into a new phase focused on integrating capacity, optimizing logistics and strengthening earnings power across the network. With that, let me turn the call over to Mike for a review of the financial results.