…The Board proposed a final dividend of N10.00/share, implying a 4.6% dividend yield at the last closing price of N219.00/share
MON MAR 02 2026-theGBJournal| BUA Cement Plc delivered a stunning earnings performance, smashing market expectations as profit after tax surged by 381 per cent year-on-year to N356.04 billion in 2025FY.
The cement giant’s blockbuster result underscores a dramatic turnaround in operating efficiency and pricing power amid a still challenging macroeconomic backdrop.
BUA Cement reported EPS growth of 381.7% y/y to N10.51 (2024FY: N2.18). The earnings surge was driven by revenue growth of 34.6% y/y, a sharp expansion in EBITDA margin (+16.75ppts y/y), and an 89.5% decline in net FX losses.
The Board proposed a final dividend of N10.00/share, implying a 4.6% dividend yield at the last closing price of N219.00/share (27 February).
BUACEMENT’s revenue increased by 34.6% y/y in 2025FY (Q4-25: +9.4% y/y), driven by growth in domestic revenue (+33.0% y/y; 98.7% of total) and a 22.4x increase in exports (1.3% of revenue). In our view, performance reflects higher prices (c. +30.0% y/y) and volumes (c. +5.0% y/y).
Interestingly, cost of sales (ex-depreciation) declined by 1.6% y/y (Q4-25: -16.7% y/y), largely reflecting lower energy costs (-13.4% y/y; 45.1% of COGS) and reduced operations and maintenance service charges (-29.0% y/y; 28.2% of COGS).
The decline in these cost elements was supported by softer energy pricing and a more benign inflation backdrop. As a result, gross margin expanded by 16.90 ppts y/y to 54.0% (Q4-25: +13.53 ppts y/y to 56.8%).
Similarly, EBITDA and EBIT margins expanded to 47.8% (+16.75 ppts y/y) and 43.6% (+16.63 ppts y/y), respectively, despite a 38.0% y/y increase in OPEX (ex-depreciation). The growth in OPEX was driven largely by higher distribution costs (+53.0% y/y; 62.2% of OPEX). In Q4-25, EBITDA and EBIT margins expanded by 12.82 ppts y/y and 12.70 ppts y/y to 50.2% and 46.3%, respectively.
Meanwhile, net finance costs declined by 63.4% y/y to N48.97 billion, supported by lower interest expense (-6.3% y/y) and a sharp reduction in FX losses (-89.5% y/y to N9.70 billion). In Q4-25, net finance costs fell 58.7% y/y to N24.46 billion.
Overall, profit before tax (PBT) surged by 367.0% y/y to N465.28 billion, while profit after tax (PAT) increased by 381.7% y/y to N356.04 billion. In Q4-25, PBT increased by 234.5% y/y to N126.71 billion, while PAT grew by 165.4% y/y to N66.18 billion.
The results reinforce expectations that the company will continue to leverage scale, operational efficiency and strategic market expansion to drive sustained profitability.
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