February 26, 2026/Cordros Report

Lafarge Africa Plc (WAPCO) published its audited 2025FY financial results today (26 February), reporting a 172.7% y/y increase in EPS to NGN16.96 (Q4-25: +63.1% y/y to NGN4.06). The earnings surge was underpinned by strong topline growth (+53.0% y/y) and a sharp expansion in EBITDA margin (+812bps y/y to 40.0%). The Board proposed a final dividend of NGN6.00/share, implying a 2.9% dividend yield based on the closing price of NGN207.00/share as at 25 February.

WAPCO posted revenue growth of 53.0% y/y in 2025FY (Q4-25: +31.6% y/y) crossing the NGN1.00 trillion revenue mark for the first time. Growth was driven by strong performance in cement (+52.9% y/y; 97.2% of revenue) and ReadyMix & other products (+68.6% y/y; 2.8% of revenue). While detailed volume and price disclosures were not provided, we attribute the performance to a combination of higher realised pricing (c. +32.0% y/y) and volume growth (c. +14.0% y/y).

Gross margin expanded by 724bps y/y to 60.9% (Q4-25: +589bps y/y to 59.3%), as cost of sales (ex-depreciation) increased at a slower pace (+29.1% y/y) relative to revenue, reflecting improved cost absorption and efficiency initiatives. The growth in cost was largely driven by higher raw materials (+59.7% y/y; 28.1% of COGS) and energy (+9.5% y/y; 41.7% of COGS) costs. We highlight that the relatively modest growth in energy costs was aided by moderation in energy prices and greater use of alternative fuels during the period.

Meanwhile, EBITDA and EBIT margins rose to 40.0% (+812bps y/y) and 36.8% (+907bps y/y), respectively, despite a 43.1% y/y increase in operating expenses (ex-depreciation). We note that the rise in OPEX was primarily driven by higher distribution costs (+33.4% y/y | 65.9% of OPEX) on higher volumes, but the OPEX-to-sales ratio declined by 147bps to 21.3% (2024FY: 22.8%), pointing to improved operating efficiency.  In Q4-25, EBITDA and EBIT margins expanded by 353bps y/y and 382bps y/y to 36.1% and 32.8%, respectively.

Below the operating line, WAPCO recorded net finance gains of NGN19.22 billion in 2025FY (vs net finance costs of NGN40.49 billion in 2024FY), driven by stronger finance income (+11.2x to NGN25.08 billion), lower finance costs (-71.6% y/y to NGN5.20 billion), and a sharp drop in FX losses (-97.3% y/y to NGN666.74 million). In Q4-25, the company posted net finance gains of NGN4.33 billion (Q4-24: net finance costs of NGN4.74 billion).

Overall, profit before tax (PBT) surged by 169.7% y/y to NGN411.32 billion, while profit after tax (PAT) increased by 172.7% y/y to NGN273.12 billion. In Q4-25, PBT grew by 68.5% y/y to NGN98.03 billion, and PAT rose by 63.1% y/y to NGN65.34 billion.

Management call on Friday, 06 March 2026, at 12.00 pm Nigerian time. Click here to register.

WAPCO’s 2025FY results came in better than expected as revenue expanded by 53.0% y/y (Cordros estimate: +48.7% y/y) and EPS expanded by 172.7% y/y to NGN16.96 (Cordros estimate: +171.8% y/y to NGN16.90), underscoring a strong operating year supported by volume growth, pricing, and operating leverage. Looking ahead, we expect the momentum from 2025 to extend into 2026, supported by sustained demand and relatively stable macro conditions, which should keep cost pressures contained. Nonetheless, we expect both revenue and earnings growth to moderate given the elevated base in 2025. For the upcoming earnings call, we believe management will provide insights on the execution and funding framework for the planned expansions at the Sagamu and Ashaka plants. Our estimates are under review.