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Nigeria’s leading cement manufacturers, Dangote Cement Plc, BUA Cement Plc and HBM Nigeria Plc, recorded a combined profit after tax of N1.71trn in the nine months ended September 2026, representing a 38 per cent increase from N1.24trn recorded in the corresponding period of 2025, despite rising operating expenses and increased investment commitments.
According to their financial statements posted on the Nigerian Exchange Limited (NGX), the three companies also generated combined revenue of N5.79trn, up from N4.79trn in the same period last year, reflecting sustained growth in cement sales and demand.
Dangote Cement accounted for the largest share of the earnings with N974.8bn profit after tax, up 31.2 per cent from N743.3bn. BUA Cement followed with N463.1bn, representing a 59.8 per cent increase from N289.9bn, while HBM Nigeria recorded N272bn, up 30.9 per cent from N207.8bn. Although Dangote Cement maintained its position as the largest contributor to industry earnings, BUA Cement recorded the fastest growth in revenue and profit during the period.
BUA Cement’s revenue increased 26.5 per cent to N1.09trn from N858.7bn, while Dangote Cement’s revenue rose 19.6 per cent to N3.77trn from N3.15trn. HBM Nigeria recorded an 18.9 per cent increase to N928.25bn from N780.49bn.
Dangote Cement’s production costs increased 7.9 per cent to N1.39trn, below its revenue growth, while selling, distribution and administrative expenses rose 20.2 per cent to N845bn, largely reflecting higher haulage costs. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 23.7 per cent to N1.77trn, with EBITDA margin improving to 46.8 per cent from 45.3 per cent.
Dangote Cement’s Chief Executive Officer, Arvind Pathak, attributed the improved margins to higher volumes and investments in alternative energy and logistics. “The quality of our earnings improved alongside the quantity. Gross margin expanded 4.0 percentage points to 63.2 per cent, as production costs grew just 7.9 per cent against revenue growth of 19.6 per cent. Fuel and power costs rose only 2.0 per cent despite 9.4 per cent volume growth – clear evidence that our energy-mix, alternative-fuel and CNG logistics investments are delivering real cash savings,” he said.
However, the company’s tax charge increased 67.2 per cent to N497.7bn from N297.7bn, outpacing its 41.5 per cent growth in profit before tax to N1.47trn. Its financial position improved significantly, moving from a net debt position of N682.9bn at the end of December 2025 to net cash of N51.1bn in September 2026. Operating cash flow rose 41.5 per cent to N1.83trn, while the company spent N566.7bn on capital expenditure and paid N753.8bn in dividends.
BUA Cement’s performance was supported by higher sales, improved margins and lower finance costs. Its cost of sales increased 8.8 per cent to N466.4bn, below revenue growth, while gross profit and EBITDA margins improved to 57.1 per cent and 52.7 per cent, respectively. Profit before tax rose 64.4 per cent to N556.7bn, while finance costs declined to N35.52bn from N56.1bn. The company also recorded a net foreign exchange gain of N29.16bn, compared with N21.63bn in the corresponding period of 2025.
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BUA Cement’s Managing Director and Chief Executive Officer, Yusuf Binji, said the company sustained its growth despite operational challenges caused by heavy rainfall and poor road infrastructure. “I am delighted with our performance, which demonstrates resilience despite challenging conditions, particularly on account of the heavy rainfall and its impact on road infrastructure. We surpassed our quarterly performances of 2025 through the addition of bulk customers, the acquisition of LNG trucks, and the further restructuring of our logistics operations,” he said.
Despite the earnings growth, the company’s borrowings increased to N613.1bn at September 2026 from N469.4bn at the end of December 2025. It spent N127.5bn on property, plant and equipment during the period and had cash and short-term deposits of N266.4bn. The company also paid N338.6bn in dividends as it pursued plans to increase installed production capacity from 17 million tonnes to 23 million tonnes through expansion projects in Ososo, Edo State, and Kalambaina, Sokoto State.
At HBM Nigeria, nine-month operating profit increased 28 per cent to N383bn, while profit after tax rose 30.9 per cent to N272bn. Its operating margin improved to 41 per cent from 38 per cent.
However, production costs increased to N372.65bn from N324.36bn, while administrative expenses rose 41.4 per cent to N63.33bn, driven by higher personnel costs, depreciation and technical service fees. The company also recorded weaker third-quarter results, with revenue declining 5.2 per cent to N249.84bn from N263.51bn, while profit after tax fell approximately 15 per cent to N63.6bn from N75.1bn.
Its Chief Executive Officer, Lolu Alade-Akinyemi, attributed the moderation to planned annual maintenance at existing plants, which affected production output during the quarter. “Our 9M 2026 results confirm that we remain firmly on track to deliver our full-year objectives. Net Sales grew 19 per cent year-on-year to N928 billion, Operating Profit rose 28 per cent to N383 billion, and Profit After Tax increased 31 per cent to N272 billion,” he said.
HBM Nigeria’s cash and cash equivalents also declined significantly to N100.1bn at September 2026 from N384.9bn at the end of December 2025. The company spent N235bn on capital expenditure, compared with N53.4bn in the corresponding period of 2025, and paid N354.4bn in dividends.
Overall, the three companies paid approximately N1.45trn in dividends and committed about N929bn to capital expenditure during the nine months, highlighting the competing demands of shareholder returns and investments in production capacity amid rising operating costs.
