RAK Ceramics (RAKCEC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 2.8% year-on-year to AED 824.9 million, and nine-month revenue reached AED 2.43 billion, driven by strong demand in the UAE, India, Bangladesh, and Germany, despite challenges in Saudi Arabia and Europe.

• Net profit after tax rose 20.7% year-on-year to AED 67.5 million in Q3 and 7.6% to AED 182.7 million for nine months, with EBITDA up 14.7% in Q3 to AED 167.7 million and 6.9% for nine months to AED 464.1 million.

• Profit before tax increased 42.4% year-on-year to AED 86.6 million in Q3 and 22.2% to AED 237.8 million for nine months.

• Net debt increased 4.5% year-on-year to AED 1.64 billion, mainly due to higher capital expenditure and working capital needs.

• Business resilience demonstrated amid challenging macroeconomic conditions, with healthy margins and cost management.

Financial highlights

• Gross profit margin for Q3 2025 decreased by 70 bps year-on-year to 40.5%, but increased by 20 bps to 40.3% for nine months.

• Q3 2025 EBITDA margin at 20.3%; 9M 2025 EBITDA margin at 19.1%.

• Net profit margin for nine months was 7.5%, up from 7.2% last year; Q3 2025 net profit margin at 8.2%.

• Effective tax rate for UAE entities increased from 9% to 14%, with an incremental tax impact of AED 23.9 million; overall effective tax rate rose to 23.79% for 9M 2025.

• Net debt/EBITDA at 2.63x as of Q3 2025, up from 2.59x in June 2025.

Outlook and guidance

• Positive outlook for UAE market over the next two years, supported by robust real estate and construction activity.

• CapEx guidance for 2025 revised to AED 275–300 million, focusing on plant upgrades, technology, and capacity expansion.

• Focus on market share growth, retail expansion, digital acceleration, and sustainability initiatives.

• Saudi Arabia market remains challenging due to liquidity constraints and competition; corrective actions under evaluation.

• Continued focus on operational improvements, cost optimization, and innovation across divisions.