July 24, 2026/CSL Report
Financial Highlights:
- Revenue: +25.6% y/y to ₦728.9bn
- Cost of Sales: +2.7% y/y to ₦301.9bn
- OPEX: +33.9% y/y to ₦56.3bn
- EBITDA: +34.0% y/y to ₦394.0n
- Operating Profit: +51.3% y/y to ₦371.3bn
- Profit After Tax: +79.6% y/y to ₦324.8bn
Stock Rating: Sell
BUA Cement delivered a resilient performance in its unaudited H1 2026 results, with Revenue increasing by 25.6% year-on-year (y/y) to ₦728.9 billion from ₦580.3 billion in H1 2025. Although the company did not provide a detailed revenue breakdown, the topline growth was likely driven by a combination of stronger sales volumes and price increases implemented during the period.
Cost of Sales increased modestly by 2.7% y/y to ₦301.9 billion, compared with ₦293.9 billion in the corresponding period of 2025. Consequently, Gross Profit surged by 49.1% y/y to ₦427.0 billion, driven by the relatively slower growth in production costs. This translated into a strong improvement in gross margin, which expanded by 924 basis points to 58.6% from 49.3% in H1 2025.
Operating Expenses increased by 33.9% y/y to ₦56.3 billion in H1 2026 from ₦42.0 billion in H1 2025. The increase was driven by a 29.6% y/y rise in Administrative Expenses to ₦15.8 billion and a sharper 35.7% y/y increase in Selling and Distribution Expenses to ₦40.4 billion. Meanwhile, Other Income, comprising insurance claims, government grants, and sundry earnings, declined to ₦510 million from ₦1.1 billion in the prior-year period.
Despite the increase in operating costs, EBITDA rose strongly by 34.0% y/y to ₦394.0 billion in H1 2026, compared with ₦294.0 billion in H1 2025. This drove EBITDA margin higher by 339 basis points to 54.1% from 50.7% a year earlier. Depreciation and Amortisation expenses declined by 53.2% y/y to ₦22.7 billion, and together with the strong EBITDA performance, supported a 51.3% y/y increase in Operating Profit to
₦371.3 billion from ₦245.4 billion.
BUA Cement also reported a substantial improvement in its financing position. Net Finance Costs narrowed sharply to ₦3.4 billion in H1 2026 from ₦31.4 billion in H1 2025, reflecting a significant increase in Finance Income to ₦18.7 billion (H1 2025: ₦6.8 billion) and a decline in Finance Costs to ₦22.1 billion (H1 2025: ₦38.1 billion). In addition, the company recorded a Net Foreign Exchange Gain of ₦13.0 billion, compared with ₦783 million in the prior year period.
Consequently, Pre-Tax Profit surged by 79.0% y/y to ₦384.4 billion from ₦214.8 billion in H1 2025. Net Income also rose by 79.6% y/y to ₦324.9 billion, compared with ₦180.9 billion in the corresponding period of 2025. As a result, Earnings Per Share (EPS) increased by 79.6% y/y to ₦9.6 per share from ₦5.3 per share in H1 2025.
We have a target price of N225.40/s for BUA Cement with a Sell recommendation. Current Price; N324.00/s.
Click here to download full report: BUA CEMENT H1 2026 Quick Take