Steppe Cement (LSE:STCM) delivered a strong first-half performance in 2026, increasing revenue by 43% year-on-year to KZT29,588 million after selling 978,950 tonnes of cement. Higher average selling prices, supported by increased sales volumes and a 7% appreciation in the Kazakh tenge, helped drive the improvement. Although Kazakhstan’s overall cement market remained broadly unchanged, the company increased its market share to 15%. Steppe Cement expects full-year sales of around 1.95 million tonnes, below 2025 levels, reflecting reduced clinker inventories.
The company continues to progress its capacity expansion project, which will increase annual production capacity to 2.5 million tonnes. Most of the required contracts have already been secured, with commissioning remaining on track for summer 2027. The project is currently being financed through internal cash flow. As a large proportion of the contracts are denominated in U.S. dollars, Steppe Cement intends to hedge its foreign exchange exposure and said it would only consider taking on debt if it decides to pursue additional expansion beyond the current development programme. The business continues to operate against a backdrop of elevated interest rates, although inflation has shown signs of easing.
The company’s outlook is supported by stronger financial performance during 2025, including a sharp recovery in revenue and improved free cash flow, alongside a balance sheet with very low levels of debt. Positive technical indicators also point to an established upward trend in the share price. However, valuation remains a consideration, with a relatively high price-to-earnings ratio partly offset by an attractive dividend yield.
More about Steppe Cement Ltd
Steppe Cement Ltd is a Kazakhstan-based producer supplying cement to the domestic construction industry. The company markets both delivered and ex-factory cement and has increasingly focused sales on regions close to its production facility to help manage rising transport and electricity costs while maintaining a strong position in the national cement market.
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