1. Company Overview & Earnings Context

Gulf Cement Company P.S.C. is a UAE-based cement producer serving the construction sector through the manufacturing and sale of cement and clinker products. During H1 2026, the company delivered a strong turnaround in financial performance, returning to profitability after reporting losses in the corresponding period last year. The improvement was supported by stronger pricing, an improved sales mix, disciplined cost management and tighter control over financing costs, while management also highlighted improved operating efficiency and strengthened liquidity.

2. Financial Performance Snapshot

• Revenue: AED 324.7 Million (+18% YoY)

• Other Operating Income: AED 5.1 Million

• Operating Profit: AED 17.5 Million (vs. Operating Loss of AED 10.3 million)

• Finance Costs: AED 3.0 Million (-49% YoY)

• Profit Before Tax: AED 14.5 Million (vs. Loss of AED 13.4 million)

• Income Tax Expense: AED 1.3 Million

• Net Profit: AED 13.2 Million (vs. Loss of AED 13.4 million)

• Earnings Per Share (EPS): AED 0.03 (vs. Loss per Share of AED 0.03)

Compared with H1 2025:

• Revenue increased 18% to AED 324.7 million.

• Operating profit improved from a loss of AED 10.3 million to a profit of AED 17.5 million.

• Profit before tax improved from a loss of AED 13.4 million to a profit of AED 14.5 million.

• Net profit improved from a loss of AED 13.4 million to a profit of AED 13.2 million.

• Earnings per share improved from a loss of AED 0.03 to AED 0.03.

3. Operational Highlights & Key Metrics

• Total Assets: AED 818.1 Million

• Total Equity: AED 512.2 Million

• Cash & Cash Equivalents: AED 7.2 Million

• Inventories: AED 150.2 Million

• Trade & Other Receivables: AED 144.4 Million

• Bank Borrowings: AED 96.1 Million

• Current Ratio: 1.03x (vs. 0.69x)

• Quick Ratio: 0.52x (vs. 0.39x)

• Book Value Per Share: AED 1.25 (+4% YoY)

4. Key Performance Drivers

Gulf Cement's turnaround during H1 2026 was driven by an 18% increase in revenue, supported by improved pricing, a stronger sales mix and disciplined cost management. Operating profit improved by AED 27.8 million year-on-year, while tighter control over capital expenditure and financing costs further strengthened profitability. Management also highlighted improved operating efficiency, stronger liquidity and continued financial discipline throughout the period.

5. Outlook & Forward Guidance

Management expects the company to continue benefiting from improved pricing, enhanced domestic sales, disciplined inventory management and established banking facilities. The company believes its strengthened financial position, available liquidity, operational efficiencies and ongoing execution of its operational plans provide adequate resources to continue as a going concern while supporting future growth.

6. Investor Takeaway

Gulf Cement delivered one of its strongest first-half recoveries in recent years, successfully returning to profitability after losses in H1 2025. Supported by stronger revenue growth, improved operating margins, disciplined cost management and a healthier balance sheet, the company appears better positioned to benefit from continued recovery in the UAE construction sector.