RAK Ceramics (RAKCEC) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue increased 1.6% year-over-year to AED 3.28 billion, driven by robust UAE demand and operational efficiency improvements.

• Profit before tax rose 19.9% to AED 331.8 million; net profit after tax up 6.2% to AED 248.5 million, despite higher UAE corporate tax impact.

• Gross profit margin improved to 40.0% for FY 2025, up from 39.3% in 2024, supported by strong UAE sales and operational efficiencies.

• EBITDA for FY 2025 reached AED 623.6 million, up 5.3% year-over-year; EBITDA margin at 19.0%.

• Strategic focus on premium positioning, cost optimization, and targeted turnaround initiatives across key markets and segments.

Financial highlights

• Q4 2025 revenue was AED 856.4 million, down 1.7% year-over-year; full year revenue up 1.6% to AED 3.28 billion.

• Q4 2025 net profit after tax increased 2.5% to AED 65.8 million; full year net profit after tax up 6.2% to AED 248.5 million.

• Gross profit margin for Q4 2025 was 39.1% (up 190bps YoY); full year margin at 40.0%.

• EBITDA for full year rose 5.3% to AED 623.6 million; EBITDA margin increased to 19.0%.

• Net debt decreased to AED 1.49 billion, with net debt/EBITDA at 2.40x.

Outlook and guidance

• CapEx guidance for 2026 is AED 500 million, including AED 150 million for the KSA Greenfield project; total KSA project capex estimated at AED 250 million.

• Priorities for 2026 include disciplined execution, operational efficiency, working capital management, and targeted growth initiatives.

• Dividend policy targets a minimum payout of 20 fils per share semi-annually for FY 2025–2027, with a minimum of 60 fils over three years.

• Continued focus on premium positioning in UAE, cost optimization in Europe, and retail expansion in India and Bangladesh.

• Management expects continued profitable growth, supported by investments in capacity, innovation, and sustainability.