March 2, 2026/Cordros Report

BUA Cement Plc (BUACEMENT) published 2025FY audited financials after market close on 27 February, reporting EPS growth of 381.7% y/y to NGN10.51 (2024FY: NGN2.18). The earnings surge was driven by revenue growth of 34.6% y/y, a sharp expansion in EBITDA margin (+16.75ppts y/y), and an 89.5% decline in net FX losses. The Board proposed a final dividend of NGN10.00/share, implying a 4.6% dividend yield at the last closing price of NGN219.00/share (27 February).

BUACEMENT’s revenue increased by 34.6% y/y in 2025FY (Q4-25: +9.4% y/y), driven by growth in domestic revenue (+33.0% y/y; 98.7% of total) and a 22.4x increase in exports (1.3% of revenue). In our view, performance reflects higher prices (c. +30.0% y/y) and volumes (c. +5.0% y/y).

Interestingly, cost of sales (ex-depreciation) declined by 1.6% y/y (Q4-25: -16.7% y/y), largely reflecting lower energy costs (-13.4% y/y; 45.1% of COGS) and reduced operations and maintenance service charges (-29.0% y/y; 28.2% of COGS). The decline in these cost elements was supported by softer energy pricing and a more benign inflation backdrop. As a result, gross margin expanded by 16.90 ppts y/y to 54.0% (Q4-25: +13.53 ppts y/y to 56.8%).

Similarly, EBITDA and EBIT margins expanded to 47.8% (+16.75 ppts y/y) and 43.6% (+16.63 ppts y/y), respectively, despite a 38.0% y/y increase in OPEX (ex-depreciation). The growth in OPEX was driven largely by higher distribution costs (+53.0% y/y; 62.2% of OPEX). In Q4-25, EBITDA and EBIT margins expanded by 12.82 ppts y/y and 12.70 ppts y/y to 50.2% and 46.3%, respectively.

Meanwhile, net finance costs declined by 63.4% y/y to NGN48.97 billion, supported by lower interest expense (-6.3% y/y) and a sharp reduction in FX losses (-89.5% y/y to NGN9.70 billion). In Q4-25, net finance costs fell 58.7% y/y to NGN24.46 billion.
 
Overall, profit before tax (PBT) surged by 367.0% y/y to NGN465.28 billion, while profit after tax (PAT) increased by 381.7% y/y to NGN356.04 billion. In Q4-25, PBT increased by 234.5% y/y to NGN126.71 billion, while PAT grew by 165.4% y/y to NGN66.18 billion.
 
Comment: In line with our expectations, BUACEMENT delivered a strong 2025FY performance, with revenue growth of 34.6% y/y (Cordros Estimate: +36.3% y/y), EBITDA margin expansion to 47.8% (Cordros Estimate: 47.8%), and EPS of NGN10.51 (Cordros Estimate: NGN10.97). The results reflect improved operational efficiency and cost optimisation, alongside the resumption of exports to Niger and Burkina Faso. For 2026E, we expect revenue growth to remain positive but moderate from the 2025FY base, while margins should remain resilient provided cost initiatives continue to deliver. Our estimates are under review.