Gulf Cement Co

1. Company Overview & Earnings Context

Gulf Cement Company PJSC reported its Q1 2026 results, delivering a strong turnaround to profitability, supported by higher revenues, improved operational efficiency, and stronger pricing dynamics.

2. Financial Performance Snapshot

• Revenue: AED 157.3M (+12% YoY)

• Operating profit (EBIT): AED 26.8M (vs loss of AED 9.6M YoY)

• Profit before tax: AED 24.8M

• Net profit: AED 22.6M (vs loss of AED 10.7M YoY)

• Earnings per share (EPS): AED 0.05 (vs loss per share of AED 0.03)

3. Operational Highlights & Key Metrics

• Raw materials & consumables cost: AED 110.2M

• Inventory changes contribution: AED 15.1M

• Services cost: AED 15.1M

• Staff costs: AED 9.7M

• Revenue geography:

• UAE revenue: AED 124.1M

• International revenue: AED 33.2M

• Balance sheet & liquidity:

• Total assets: AED 860.3M

• Total equity: AED 521.5M

• Cash & equivalents: AED 2.2M

• Bank borrowings: AED 75.2M

• Liquidity ratios:

• Current ratio: 1.03x

• Quick ratio: 0.50x

4. Key Performance Drivers

• Strategic price increases, supporting margin recovery

• Improved sales mix, enhancing profitability

• Strict cost control measures, improving operational efficiency

• Operational stability and expanded market reach

• Domestic sales growth, supported by demand recovery

5. Outlook & Forward Guidance

• Management highlighted focus on:

• Further operational optimization

• Strengthening cash conversion cycle

• Alternative energy sourcing initiatives

• Expanding domestic market presence

• The company expects:

• Improved production optimization

• Better utilization of existing contracts

• Enhanced treasury and liquidity management

6. ???? Investor Takeaway

Gulf Cement delivered a strong Q1 2026 turnaround, moving from losses to profitability, supported by higher pricing, improved operational efficiency, and tighter cost controls, highlighting improving fundamentals despite ongoing industry challenges.