Follow Us on Google
By Chinwendu Obienyi
Investors in Nigeria’s three listed cement makers are poised for stronger shareholder returns as robust H1 2026 earnings, rising sales volumes and improved cash generation strengthen expectations of bigger dividends for the full year.
The trio, Dangote Cement Plc, BUA Cement Plc and HBM Nigeria Plc, delivered strong first-half performances, reinforcing the cement sector’s position as one of the key beneficiaries of Nigeria’s infrastructure and construction recovery.
Dangote Cement led by scale, with group revenue rising 21.4 per cent year-on-year (y/y) to N2.51 trillion in H1 2026, while profit after tax (PAT) increased 22.7 per cent to N638.5 billion. Group cement and clinker volumes rose 11.8 per cent to 14.9 million tonnes, supported by stronger Nigerian exports and improved operating efficiency.
BUA Cement also posted substantial growth, with revenue climbing 25.6 per cent to N728.9 billion, from N580.3 billion in H1 2025. Profit before tax jumped 79 per cent to N384.4 billion, while PAT rose 79.6 per cent to N324.9 billion, compared with N180.9 billion a year earlier.
The company attributed the performance to new-market growth, cost discipline and a more stable foreign-exchange environment with bulk cement sales also expanding sharply.
HBM Nigeria, formerly Lafarge Africa, recorded a 31.2 per cent increase in revenue to N678.4 billion, while profit before tax rose 59.1 per cent to N317.7 billion and PAT climbed 57 per cent to N208.4 billion. Sales volume increased 11 per cent, while operating profit rose 51 per cent to N290.9 billion.
Hence, the total revenue for the period stood at N3.9 trillion.
The dividend outlook is equally striking. Analyzing the companies’ results, HBMNG declared a surprise N16 interim dividend per share, compared with N4 in H1 2025, a 300 per cent increase.
Other News
BUA paid no interim dividend in H1 2026, while its 2025 full-year dividend was N10 per share, compared with N2.05 in 2024. Dangote Cement’s latest annual dividend rose to N45 per share, from N30 in 2024.
Despite economic as well as global constraints, it is expected that the dividend momentum would continue. Forecasts put 2026 DPS at N70 for Dangote Cement, N15 for BUA Cement and N26 for HBMNG, meaning that payout ratios may be about 89 per cent, 84.6 per cent and 91 per cent respectively.
Beyond investors, the earnings boom could support Nigeria’s economy through higher industrial output, tax revenues, employment and capital expenditure. Capacity expansion by the companies should also strengthen domestic cement supply for housing, roads, factories and other infrastructure.
Shareholders who spoke to Daily Sun, noted that the three companies’ H1 results reflects strong operational and financial results for the review period.
According to them, the earnings and dividend outlook are encouraging, particularly the prospect of higher cash returns at a time when inflation and elevated interest rates continue to erode investment income.
“The expected payouts could make the cement stocks more attractive, however, sustained earnings growth, not dividends alone, would determine whether the rally in the sector can be maintained.
Investors want to see that the companies can reward shareholders without compromising their expansion plans”, they said.
The key risk is whether the companies can maintain high payouts while simultaneously funding heavy capital expenditure, managing energy costs and sustaining demand.
Overall, the H1 results point to a cement industry generating more profits, investing more capital and returning more cash to shareholders, potentially creating a powerful link between corporate earnings, investor wealth and Nigeria’s broader economic expansion.
