Earnings Report

RAK Ceramics

H1 26

1. Company Overview & Earnings Context

RAK Ceramics PJSC is an Abu Dhabi Securities Exchange (ADX)-listed global ceramics manufacturer engaged in the production and sale of ceramic tiles, sanitaryware, faucets, tableware and related building materials. During H1 2026, the Group delivered a resilient performance despite geopolitical tensions, supply chain disruptions and higher logistics costs. Strong demand across the UAE, Saudi Arabia and Bangladesh, coupled with disciplined execution and product innovation, helped the company maintain profitability and strengthen its market position. The Board also proposed an interim dividend of 10 fils per share for H1 2026.

2. Financial Performance Snapshot

Revenue: AED 1.58 Billion (-1.2% YoY)
Gross Profit: AED 637.08 Million (-1.1% YoY)
Operating Profit: AED 173.97 Million (-4.5% YoY)
Profit Before Tax: AED 138.72 Million (-8.3% YoY)
Net Profit: AED 106.53 Million (-7.6% YoY)
Earnings Per Share (EPS): AED 0.103 (vs. AED 0.113 in H1 2025)

Compared with H1 2025:

Revenue declined 1.2% to AED 1.58 billion.
Gross profit declined 1.1% to AED 637.08 million.
Operating profit declined 4.5% to AED 173.97 million.
Profit before tax declined 8.3% to AED 138.72 million.
Net profit declined 7.6% to AED 106.53 million.
Earnings per share decreased from AED 0.113 to AED 0.103.

3. Operational Highlights & Key Metrics

Total Assets: AED 5.40 Billion
Total Equity: AED 2.35 Billion
Property, Plant & Equipment: AED 1.45 Billion
Investment Properties: AED 896.50 Million
Cash & Cash Equivalents: AED 208.07 Million
Net Cash Generated from Operating Activities: AED 244.17 Million
Net Debt: AED 1.52 Billion
Net Debt / EBITDA: 2.48x

4. Key Performance Drivers

RAK Ceramics maintained resilient earnings despite a challenging operating environment. Strong demand in the UAE, Saudi Arabia and Bangladesh helped offset weaker sales in Europe and India. Gross profit margin remained stable at 40.2%, supported by a favorable product mix, product innovation and manufacturing efficiencies. The company also generated strong operating cash flow of AED 244.2 million while reducing net debt by 2.6% year-on-year.

5. Outlook & Forward Guidance

Management remains focused on capturing additional market share across its core markets while driving value-led growth through product innovation, operational efficiency and manufacturing upgrades. The Group will continue investing in strategic initiatives across Europe, India and Bangladesh while expanding production capacity, including the Greenfield Tiles Project in Yanbu, Saudi Arabia, expected to be completed by Q2 2027.

6. Investor Takeaway

RAK Ceramics delivered a resilient first-half performance despite geopolitical and supply chain challenges. Supported by stable margins, healthy operating cash flows, lower net debt and continued investments in capacity expansion and innovation, the company remains well positioned to capitalize on long-term demand across its regional markets while continuing to create sustainable shareholder value.