RAK Ceramics (RAKCEC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 2.0% year-over-year to AED 760.7 million, impacted by regional conflicts, trade barriers, and supply chain disruptions.

• Gross profit margin remained resilient at 39.4% versus 39.7% in Q1 2025, supported by higher UAE sales and favorable product mix.

• Net profit after tax dropped 21.8% year-over-year to AED 38.2 million; EBITDA fell 6.1% to AED 127.3 million.

• Management responded with cost controls, logistics optimization, and focus on higher-margin sales in UAE and KSA.

• Maintained uninterrupted supply and service across all markets, leveraging proactive crisis management.

Financial highlights

• Revenue: AED 760.7 million (-2.0% YoY); EBITDA: AED 127.3 million (-6.1% YoY); Net profit after tax: AED 38.2 million (-21.8% YoY).

• Gross margin: 39.4% (-30 bps YoY); Net debt increased to AED 1.56 billion, mainly due to dividend payment.

• Net debt/EBITDA rose to 2.53x from 2.40x in December 2025.

• Capital expenditure for Q1 2026 was AED 42.8 million; 2026 CapEx guidance is AED 400 million, including AED 150 million for the Saudi Greenfield project.

• Net profit margin at 5% compared to 6.3% last year; profit before tax dropped 17.9% YoY to AED 53 million.

Outlook and guidance

• Remains vigilant and well-positioned to capture market share in core GCC markets, focusing on project-led growth and premium product expansion.

• Greenfield tile plant in Yanbu, KSA, on track for Q1 2027 commissioning.

• Strategic focus includes Cookplay brand integration and value creation in Europe, India, and Bangladesh.