Grupo Argos accelerates the execution of ACE 1.0 through stronger cash generation, lower debt, and share price appreciation, reporting EBITDA of COP 2.1 trillion and an EBITDA margin of 25%

• On a comparable basis, as of the end of the third quarter, Grupo Argos reported consolidated revenue of COP 8.62 trillion, EBITDA of COP 2.14 trillion, with an EBITDA margin of 25%, and adjusted net income of COP 666 billion as of the end of September. Net income attributable to the parent company reached COP 274 billion.
• Three months after the launch of ACE 1.0, Grupo Argos has strengthened its financial position with cash proceeds exceeding COP 440 billion from the divestment of Pactia’s shopping malls and Odinsa’s extraordinary dividend distribution.
• The organization’s consolidated gross debt decreased by 13% compared to September 2025, while net financial expenses declined by 39%.

Grupo Argos closed the third quarter of 2026 with tangible progress in ACE 1.0, the roadmap unveiled by the company in August to accelerate value generation, capture, and transfer to its shareholders and help bring its share price closer to the company’s intrinsic value.

From the announcement of ACE 1.0 through November 9, Grupo Argos’ common shares appreciated by 29%, while preferred shares gained 22%. This performance was accompanied by a significant improvement in liquidity: average daily trading volume increased 2.1 times for common shares and 2.3 times for preferred shares compared to the period before the program’s launch, excluding weeks associated with index rebalancing. During this period, Grupo Argos’ preferred shares were included in the MSCI Small Cap Index and subsequently in the FTSE Russell indices, increasing their visibility among local and international institutional investors.

Progress was also achieved across all three pillars of ACE 1.0. Cementos Argos and Celsia continued implementing their efficiency, profitability, and deleveraging initiatives. Odinsa strengthened the capabilities supporting its evolution toward Grupo Argos Asset Management and completed the acquisition of 100% of Ticsa to consolidate its water infrastructure platform. Meanwhile, Grupo Argos advanced its share repurchase program, reaching a cumulative amount of COP 290 billion.

Additionally, the divestment of Pactia’s shopping malls and Odinsa’s extraordinary dividend distribution strengthened Grupo Argos’ financial capacity, generating cash proceeds exceeding COP 440 billion to support the continued execution of ACE 1.0.

“We are making progress in strengthening the profitability of our businesses, monetizing assets, and generating and transferring value to all Grupo Argos shareholders. At the same time, we are maintaining a solid financial position and beginning to see positive signs in the liquidity and valuation of our shares, which will be key to achieving the convergence toward intrinsic value targets we have established under ACE 1.0. Our focus remains on translating our operational and asset management capabilities into stronger cash flow generation and higher returns for our shareholders.”

Juan Esteban Calle, CEO of Grupo Argos.

As the year draws to a close, Grupo Argos will continue executing ACE 1.0 through initiatives aimed at further enhancing the profitability of its businesses and accelerating value capture and transfer to shareholders. Among its upcoming milestones, the company will move forward with the completion of its second offering through the Independent Mechanism, for up to COP 150 billion, and is considering increasing the reserves available to continue executing its share repurchase program.

Additionally, Grupo Argos will continue promoting initiatives to unlock the value of its principal investments. In the case of Cementos Argos, which meets the size and liquidity criteria associated with eligibility for the MSCI Standard Index, Grupo Argos will evaluate alternatives to increase its free float, including a potential marginal reduction in its ownership stake while maintaining control. If implemented, the proceeds potentially released could be allocated to accelerating Grupo Argos’ share repurchase program, subject to market conditions and the company’s disciplined capital allocation approach. This initiative would simultaneously support greater liquidity and value recognition for Cementos Argos and the transfer of value to Grupo Argos shareholders.

Progress in efficiency and cash flow generation amid a challenging quarter

Cementos Argos reported cement volumes of approximately 2.4 million tons during the third quarter, representing 3% growth, while ready-mix concrete volumes increased by 15% to approximately 690,000 cubic meters. Revenue reached COP 1.35 trillion, and EBITDA totaled COP 323 billion. Cost pressures related to energy and exchange rates were partially offset by savings in selling, general, and administrative expenses, as well as foreign exchange hedges that contributed positively to EBITDA.

The company continued advancing the separation of Argos Materials and Argos Latam, with the aim of providing each platform with greater strategic focus, dedicated resources, and its own capital structure. Argos Materials has already established a permanent presence in Tampa and is evaluating more than 95 opportunities in its target markets.

At Celsia, revenue reached COP 1.62 trillion, representing 25% growth, while EBITDA totaled COP 284 billion. The quarter was affected by El Niño, higher electricity purchases on the spot market, and temporary changes in electricity market conditions. At the same time, the company continued advancing its structural profitability agenda, improving its EBITDA margin by 241 basis points as part of its progress toward its 2028 target, while reducing consolidated gross debt by 11% compared to the same period of the previous year.

At Odinsa, the main milestone was the completion of the acquisition of 100% of Ticsa for COP 277 billion, a transaction that marks the organization’s entry into Mexico and consolidates its new water infrastructure platform. The company executed financial transactions involving Opain and Pacífico 2 that accelerated approximately COP 195 billion in cash flow and strengthened the management capabilities that will be essential to its evolution toward Grupo Argos Asset Management.

The Urban Development Business has closed transactions totaling approximately COP 174 billion year-to-date and generated cash inflows of nearly COP 129 billion. Cumulative net cash flow through September improved by COP 43 billion compared to the same period of the previous year.

Meanwhile, Pactia completed the sale of its eight Gran Plaza shopping malls for COP 1.18 trillion, in line with the monetization strategy under ACE 1.0. Adjusting for the impact of divestments, effective gross income and EBITDA for the quarter increased by 7% and 18%, respectively.

Financial Results

On a comparable basis, consolidated revenue for the nine months ended September reached COP 8.62 trillion, while EBITDA totaled COP 2.14 trillion, representing an EBITDA margin of 25%. Cumulative adjusted net income reached COP 666 billion, and net income attributable to the parent company totaled COP 274 billion.

During the third quarter, adjusted revenue amounted to COP 3.19 trillion, a decrease of 5% compared to the same period in 2025, while adjusted EBITDA reached COP 724 billion, down 20%, with a margin of 23%. Adjusted net income for the quarter totaled COP 304 billion, and net income attributable to the parent company reached COP 113 billion.

The pressure on EBITDA primarily reflects temporary factors affecting Cementos Argos and Celsia, related to higher energy costs, exchange rates, and electricity purchases on the spot market.

As of the end of September, consolidated gross debt stood at COP 10.0 trillion, representing a 13% reduction compared to September 2025, while consolidated net debt, excluding restricted cash and cash equivalents, closed at COP 879 billion. Net financial expenses decreased by 39%, from COP 1.07 trillion to COP 652 billion.

On a pro forma separate financial statement basis, Grupo Argos reported revenue of COP 578 billion, EBITDA of COP 414 billion, representing an EBITDA margin of 72%, and adjusted net income of COP 279 billion.