BUA Cement Plc delivered a strong half-year performance in 2026, underscoring a significant shift in Nigeria’s cement market dynamics as bulk cement sales posted explosive growth. This surge signals strengthening demand from large-scale infrastructure and industrial projects nationwide.
Massive construction works are ongoing in the property and infrastructure sectors of the country, including the major road projects embarked on by the federal government across 11 states, with a total value of N3.94 trillion. This, expectedly, is to boost the revenue of cement companies in the country, which are to supply the bulk cement required for the projects.
Some of the construction works are the 23 road projects across Adamawa, Taraba, Ebonyi, Kwara, Cross River, Kogi, Lagos, Niger, Oyo, and Plateau states valued at N2.078 trillion. The 409 km dual carriageway in Niger State (Dangote Group, reinforced concrete, tax credit scheme) is valued at N1.8325 trillion, and the 32.2 km road project in Gashua, Yobe State (augmentation), which was valued at N15 billion.
Others are the second phase of Yola-Fufore-Gurin Road (additional 20 km), Adamawa State for N15.246 billion and the Lagos-Ibadan Expressway (operation & maintenance concession + reconstruction of failed Ibadan approach with reinforced concrete).
According to the company’s financial results for the six months ended June 30, 2026, revenue from bulk cement sales soared to ₦40.15 billion—an extraordinary leap from just ₦236.29 million in the same period of 2025. This sharp increase in bulk sales came alongside continued momentum in bagged cement sales, which climbed to ₦688.77 billion from ₦580.07 billion a year earlier.
Overall, total revenue for the period rose to ₦728.93 billion, representing a 25.6 per cent year-on-year increase and highlighting BUA Cement’s strengthened market position amid robust demand from both retail and large-scale buyers.
The remarkable expansion in bulk cement sales suggests increased activity in infrastructure development, commercial construction and large industrial projects, which typically consume cement supplied in bulk rather than in bags. The performance also points to improving demand from contractors executing major public and private sector developments.
The stronger sales mix contributed to a substantial improvement in the company’s profitability. Gross profit rose 49.1 per cent to ₦427.03 billion from ₦286.36 billion, while operating profit increased to ₦371.27 billion, compared with ₦245.39 billion in the corresponding period of last year.
BUA Cement also benefited from improved foreign exchange performance during the period, recording a ₦16.57 billion net foreign exchange gain, compared with a modest ₦782.82 million gain in the first half of 2025. The foreign exchange gains, combined with higher operating earnings, lifted profit before tax by 78.9 per cent to ₦384.44 billion, while profit after tax surged 79.6 percent to ₦324.88 billion from ₦180.90 billion. Earnings per share strengthened to 959.35 kobo, up from 534.18 kobo in the comparable period.
Despite higher production and logistics costs, the company maintained healthy margins as revenue growth outpaced increases in operating expenses. Cost of sales rose to ₦301.89 billion, while selling and distribution expenses increased to ₦40.45 billion, reflecting higher distribution and haulage costs associated with expanding sales volumes.
The company continued investing in future production capacity during the period. Property, plant and equipment increased to ₦1.22 trillion, while capital expenditure on fixed assets amounted to ₦60.67 billion. Construction work in progress also expanded significantly to ₦183.86 billion, underscoring ongoing investments aimed at supporting future growth and meeting rising market demand.
To support these investments, BUA Cement increased its long-term borrowings to ₦487.58 billion from ₦313.07 billion at the end of 2025, while reducing short-term borrowings to ₦132.70 billion from ₦156.30 billion, indicating a shift toward longer-tenor financing.
Cash generation remained strong during the period, with net cash from operating activities reaching ₦278.45 billion, while cash and short-term deposits increased to ₦303.56 billion, providing additional financial flexibility as the company continues to expand its production footprint.
The sharp rise in bulk cement sales is likely to attract attention from investors and industry analysts, as it provides an early indication of strengthening infrastructure spending and increased execution of large construction projects, reinforcing BUA Cement’s positioning to benefit from Nigeria’s long-term infrastructure and industrial development agenda.
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