BUA Cement, Nigeria’s second largest cement manufacturer is on track to surpass a trillion naira in revenue for the first time by year-end, returning a 36% compound annual growth rate (CAGR) in revenue over the past 5-years.
The cement maker delivered a strong topline performance in the first six months (H1) of 2025, driven primarily by significant price adjustments in line with industry-wide trends as revenue rose 59.4% year-on-year (YoY) to N580.3 billion.
“We see potential upside to volumes, as ongoing discussions between the Federal Government and cement producers to maintain stable pricing for contractors handling projects under the Renewed Hope Initiative could stimulate public sector-driven demand in the coming quarters. Overall, we now project FY’25 revenue to reach N1.3 trillion,” Cardinal Stone Partners analysts led by Adebayo Adebanjo, said.
BUA Cement’s gross and EBIT margins expanded to 49.2% and 42.3% in H1, 2025, respectively, reflecting disciplined cost management. Slower growth in material costs, coupled with significant declines in energy and other manufacturing expenses in Q2’2025, underpinned this improvement.
The company is beginning to realise tangible benefits from its ongoing transition to alternative energy sources, which should continue to support margins in subsequent quarters, according to Cardinal Stone.
BUA Cement trades at 25 times earnings and has a market capitalisation of N5.7 trillion. Cardinal Stone Partners forecasts 1.59 trillion naira in revenue for FY 2026
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