Caribbean Cement Company Limited posted stronger first-quarter profit in 2026, capitalising on expanded production capacity and hurricane-driven demand after a year in which annual output fell to a near five-year low.
The company reported revenue of $9.3 billion for the three months ended March 2026, a 12.9 per cent increase over the same period a year earlier, as reconstruction activity following Hurricane Melissa sustained demand for cement across the island. Net income reached $3.0 billion, up 52.8 per cent from $2.0 billion in the first quarter of 2025, while earnings per share rose to $3.58 from $2.34.
The improved results partially reflects the operational efficiencies delivered by the company’s completed $6.7-billion debottleneck project, which upgraded the capacity of its kiln – the industrial furnace at the heart of cement production – reducing unit production costs and improving gross profit margins to 51 per cent from 46 per cent. The debottleneck investment enabled record cement production of some 289,700 metric tonnes in the first quarter of 2026 or 33 per cent higher than a year earlier.
Low output explained
The strong results, however, followed a difficult production year. Caribbean Cement confirmed to the Financial Gleaner that cement output in 2025 remained below one million tonnes, weighed down by an unusually extended planned shutdown, post-hurricane demand disruption, and two separate kiln stoppages caused by excess inventory.
The planned shutdown lasted 55 days – significantly longer than the typical annual outage of 15 to 20 days – during which the company completed both routine major maintenance works and the commissioning of a new kiln under the debottleneck project.
“The commissioning of the new kiln did not immediately translate into higher production volumes, as a period of stabilisation and ramping-up is required before steady operating conditions can be achieved,” the company said.
Hurricane Melissa compounded the pressure. While the company said operations were only marginally affected by the storm directly, local demand softened in its aftermath as the initial recovery phase focused on clean-up rather than reconstruction. The demand weakness that followed forced the company to halt kiln operations twice due to excess inventory – for 30 days in October and again for 15 days in December – accounting for 45 additional days of lost production in the second half of the year alone.
The company noted, however, that following completion of the expansion project, the upgraded plant achieved a record monthly production level in July 2025, demonstrating the enhanced capacity of the facility.
“Carib Cement is committed to Jamaica and to meeting the demands of the local market,” the company said.
Outlook
The company flagged higher fuel and energy costs stemming from the US-Iran conflict as a risk to watch, but said proactive measures would be taken to maintain operational stability.
business@gleanerjm.com
