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Earnings Report

Fujairah Cement Industries

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Fujairah Cement Industries P.J.S.C. reported a return to profitability in Q1 2026 supported by stronger revenue, improved gross profit, and better operational performance compared to the same period last year. The Group operates across clinker, cement, and hydraulic cement manufacturing activities in the UAE.

Management highlighted that ongoing regional construction and infrastructure activity continues supporting demand for cement products despite elevated borrowing costs and competitive market conditions.

2. Financial Performance Snapshot

  • Revenue: AED 158.7M

  • Gross profit: AED 30.0M

  • Selling & distribution expenses: AED 6.56M

  • General & administrative expenses: AED 3.85M

  • Production idle cost: AED 2.54M

  • Finance costs: AED 11.75M

  • Net profit: AED 5.68M

  • Basic EPS: AED 0.016

Compared to Q1 2025:

  • Revenue increased from AED 61.2M to AED 158.7M

  • Gross profit increased from AED 11.9M to AED 30.0M

  • Net loss of AED 35.8M in Q1 2025 shifted to a net profit of AED 5.68M in Q1 2026

Additional highlights:

  • Gross profit margin improved to 19%

  • Net profit margin reached 4%

  • Cash profit ratio stood at 13%

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.14B

  • Total equity & reserves: AED 147.7M

  • Non-current assets: AED 983.7M

  • Current assets: AED 154.5M

  • Current liabilities: AED 888.3M

  • Non-current liabilities: AED 102.3M

  • Inventories: AED 119.1M

  • Trade receivables: AED 56.4M

  • Property, plant & equipment: AED 892.0M

Additional highlights:

  • Operating cash flow reached AED 15.6M

  • Cash used in financing activities totaled AED 14.4M

  • Bank borrowings remained elevated at AED 885.3M

  • The company continued restructuring and repayment discussions with banks during the quarter

4. Key Performance Drivers

  • Significant improvement in cement and clinker sales volumes supported revenue growth

  • Stronger gross profit generation improved operating performance

  • Continued high finance costs remained a major profitability pressure point

  • Production idle costs continued impacting margins during the quarter

  • Cost control measures and operational efficiency improvements supported return to profitability

The Group also recorded:

  • AED 15.6M positive operating cash flow

  • AED 2.54M production idle cost

  • AED 11.75M finance costs during the quarter

  • Improved inventory management compared to year-end 2025

5. Outlook & Forward Guidance

  • Management expects stable regional construction and infrastructure activity to continue supporting cement demand

  • Continued focus on cost optimization and operational efficiency remains a strategic priority

  • Ongoing restructuring discussions with banks remain important for financial stability

  • The company continues monitoring high borrowing costs and competitive market conditions

  • FCI remains focused on improving profitability, liquidity, and production utilization levels

Management also highlighted that controlling costs and improving efficiency will remain critical to protecting profitability amid elevated finance costs and competitive pressures.

6. 🧾 Investor Takeaway

FCI returned to profitability in Q1 2026 supported by significantly stronger revenue, improved gross margins, and better operational performance, although high finance costs and production idle expenses continue weighing on overall profitability and financial flexibility.