Steppe Cement (LSE:STCM) reported a strong recovery in 2025 as Kazakhstan’s cement market grew by more than 20% to exceed 14 million tonnes, supported by renewed momentum in residential building and infrastructure development. The company retained a 14.4% share of the domestic market while increasing sales volumes by 21% to approximately 2.07 million tonnes, helped by improved operational reliability and higher clinker production.
Group revenue increased 20% to USD 101.5 million, while gross profit reached USD 28.4 million and EBITDA improved to USD 11.8 million. Net profit more than tripled to USD 3.2 million as operational efficiencies and tighter cost controls enhanced profitability. Supported by a cash balance of USD 10.5 million, the board approved a USD 30 million expansion programme designed to increase clinker production capacity from 3,000 to 4,500 tonnes per day and raise annual cement capacity to roughly 2.5 million tonnes by summer 2027.
Operational improvements on Line 6 contributed to an 11% increase in clinker output to 1.63 million tonnes. The new capital investment programme includes upgrades to the cooler, raw mill, riser duct, cyclones and kiln systems, with the aim of reducing coal and electricity consumption per tonne produced without significantly increasing fixed operating costs. Management said the investments are expected to strengthen the company’s market position as Kazakhstan continues to benefit from population growth, urbanisation and sustained construction demand.
The group is also advancing several environmental initiatives. Steppe Cement has already closed energy-intensive wet production lines, upgraded filtration systems and improved heat recovery processes to keep energy consumption and emissions broadly aligned with international industry standards. The company is currently negotiating a framework agreement with the Kazakh government to meet Best Available Technologies standards by 2035 and has committed USD 5 million over the next two years to complete a transition to bag filters. Management expects the move to reduce its annual emissions tax bill of approximately USD 1.4 million while further improving the company’s environmental performance.
On the governance side, long-serving chief executive Javier del Ser Pérez has transitioned to the role of executive chairman, while Petr Durnev has assumed day-to-day leadership responsibilities as chief executive officer during the group’s expansion phase. Steppe Cement will hold its annual general meeting in Kuala Lumpur on 26 June 2026, with the 2025 annual report and AGM notice to be published on the company’s website ahead of the meeting.
Steppe Cement’s outlook is supported by strong cash generation, low leverage, positive corporate developments and an attractive dividend yield. However, the company’s relatively high price-to-earnings ratio and technically overbought share price conditions could present near-term risks.
More about Steppe Cement
Steppe Cement (LSE:STCM) is an AIM-listed cement producer focused on the Kazakhstan construction market, supplying clinker and cement to domestic infrastructure and building projects. The company operates close to major industrial and population centres including Astana, Karaganda and Temirtau, with access to essential raw materials such as limestone, clay, coal, iron ore and slag that support its cost efficiency and competitive positioning.
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