Fujairah Cement Industries

1. Company Overview & Earnings Context

Fujairah Cement Industries PJSC (FCI) is a UAE-listed cement manufacturer engaged in the production of clinker and hydraulic cement, with a wholly owned subsidiary manufacturing ready-mix concrete. The company serves the UAE construction sector while also participating in export markets.

For H1 2026, the company significantly improved its operating performance, reporting revenue of AED 275.2 million and reducing its net loss to AED 2.3 million from AED 69.4 million in the prior-year period. The improvement was driven by stronger sales volumes, a return to positive gross profit, and lower production idle costs, although high finance costs continued to weigh on profitability.

2. Financial Performance Snapshot

• Revenue: AED 275.2 Million

• Direct Costs: AED 231.5 Million

• Gross Profit: AED 43.7 Million

• Other Income: AED 1.5 Million

• Selling & Distribution Expenses: AED 10.8 Million

• General & Administrative Expenses: AED 8.0 Million

• Production Idle Costs: AED 5.2 Million

• Finance Costs: AED 23.5 Million

• Net Loss Before Tax: AED 2.3 Million

• Net Loss: AED 2.3 Million

• Earnings Per Share (EPS): (AED 0.006)

Compared with H1 2025:

• Revenue increased from AED 1.4 million to AED 275.2 million.

• Gross profit improved from AED 3.6 thousand to AED 43.7 million.

• Gross margin increased from 0% to 16%.

• Net loss narrowed by 96.7%, from AED 69.4 million to AED 2.3 million.

• Earnings per share improved from (AED 0.192) to (AED 0.006).

3. Operational Highlights & Key Metrics

• Total Assets: AED 1.15 Billion

• Non-Current Assets: AED 969.9 Million

• Current Assets: AED 184.4 Million

• Total Equity: AED 139.8 Million

• Non-Current Liabilities: AED 175.3 Million

• Current Liabilities: AED 839.3 Million

• Operating Cash Flow: AED 33.1 Million

• Investing Cash Flow: (AED 2.1 Million)

• Financing Cash Flow: (AED 29.4 Million)

• Gross Profit Margin: 15.86%

• Net Profit Margin: (0.83%)

• Cash Profit Ratio: 10.39%

4. Key Performance Drivers

FCI's financial performance improved considerably during H1 2026 following the resumption of production activities, resulting in a sharp increase in revenue and the return to a healthy gross profit margin. Lower production idle costs also supported operating performance. However, elevated finance costs and borrowing expenses continued to offset much of the operational improvement, leaving the company with a small net loss. Management also noted ongoing geopolitical uncertainty affecting logistics and export routes while continuing efforts to improve liquidity, restructure borrowings, enhance operational efficiency and strengthen working capital management.

5. Outlook & Forward Guidance

Management expects the UAE economy to remain stable through the remainder of 2026, supported by continued construction and infrastructure activity that should sustain cement demand. While the sector offers solid growth opportunities, the company expects high borrowing costs, intense competition and regional geopolitical uncertainties to continue pressuring margins. Management remains focused on cost discipline, operational stability and efficiency improvements to protect profitability.

6. Investor Takeaway

Fujairah Cement Industries delivered a significant operational turnaround in H1 2026, with revenue recovering strongly and losses narrowing substantially compared with the prior year. While high finance costs and balance sheet challenges remain key risks, improving operating performance, positive operating cash flow and stable construction demand provide a foundation for further recovery if cost controls and debt restructuring efforts continue successfully.