BUA Cement Leads Nigeria’s Cement Sector in Profit Growth With a 382% Surge in 2025

BUA Cement Plc posted the fastest profit growth among Nigeria’s three listed cement makers in 2025, with after-tax earnings surging 382% to ₦356 billion, a performance that has reshaped the competitive dynamics of the country’s cement industry.

The results, announced at the company’s 10th Annual General Meeting in Abuja, show BUA Cement crossing the ₦1 trillion revenue mark for the first time and recording a net profit margin of 30.2% — the highest among its peers and a sharp reversal from just 8.4% in 2024. Earnings per share climbed to ₦10.51 from ₦2.18 the previous year, while the board approved a total dividend payout of ₦10 per share.

Chairman Abdul Samad Rabiu, who controls nearly 98% of the company and is ranked among Africa’s wealthiest individuals, attributed the performance to disciplined execution and strategic resilience amid a difficult macroeconomic climate marked by high energy costs, foreign exchange volatility, and supply chain disruptions.

BUA Cement’s operating profit more than tripled to ₦504.6 billion in 2025, up from ₦144.3 billion in 2024. Its gearing ratio fell sharply from 127% to 37%, signalling a significantly stronger balance sheet.

The profit explosion was driven by a combination of factors: higher cement prices, improved production volumes at BUA’s Obu and Lafia plants, and a dramatic recovery in gross margins.

Gross margin expanded to 51.2% from 34% in 2024, while EBITDA margin rose to 46.6%. The company produced approximately 13.2 million tonnes in the first nine months of the year alone — a 27% increase in volume that helped underpin top-line growth.

How the three rivals compare — full year 2025

★ Highest profit growth rate among the three.  * Lafarge 2024 full-year figures used for comparison; 2025 full-year results pending full disclosure.

While Dangote Cement remains dominant in absolute size, generating over ₦4 trillion in revenue and ₦1 trillion in profit, BUA’s growth rate far outpaced it. Analysts note that BUA’s stronger margin profile in 2025 is particularly significant: its 30.2% net profit margin now exceeds even Dangote’s 23.6%, suggesting the company is extracting more value from each naira of sales.

The strong performance continued into early 2026. In the first quarter of the year, BUA Cement reported revenue of ₦355 billion, up 22% year-on-year, with a net profit of ₦176.4 billion and a profit margin of 50%, a further improvement from the 28% recorded in Q1 2025.

Nigeria’s cement sector as a whole benefited from a buoyant operating environment in 2025. The federal government’s infrastructure push, including the 700-kilometre Lagos–Calabar coastal highway and a network of rural road projects, kept demand elevated, while a more stable naira reduced foreign exchange losses that had weighed heavily on results in 2024. The three major producers collectively posted a net income of over ₦834 billion in the first half of 2025 alone,more than triple the same period a year earlier.

BUA’s market share on the Nigerian Exchange also reflected investor confidence. Its stock surged over 63% year-to-date as of September 2025, compared with Dangote Cement’s 8.65% gain over the same period, signalling that markets were rewarding BUA’s momentum more aggressively.

Analysts at Afrinvest West Africa said BUA remained on track to achieve its full-year profit forecast, citing a favourable operating environment and continued management focus on cost containment and market deepening. With its gearing ratio now at 37% — down sharply from 127% in 2024- the company also enters 2026 with considerably more financial flexibility than it had a year ago.