Cementir sees higher revenues ahead on pricing power despite regional headwinds

Global building materials supplier Cementir said it expects higher revenues in 2026, supported mainly by price increases tracking inflation and a slight recovery in volumes during the second half of the year, though China and Turkey will continue to face headwinds.

The company, which operates cement, ready-mixed concrete and aggregates production across Europe, North Africa and Asia-Pacific, is banking on pricing power to offset volume pressures in key markets as it navigates a fragmented global construction sector marked by regional divergence in demand.

Cementir increased cement and clinker sales volumes by 3.1% to 11 million mt in 2025, driven by demand growth in Turkey, Egypt and Asia-Pacific, which offset weakness in the Nordic and Baltic markets, according to the company's 2025 consolidated results released March 11. The volume growth underscores the company's ability to capture market share in emerging markets even as developed economies face structural headwinds, according to the company's press release.

In Turkey, the company anticipates a contraction in domestic volumes in 2026 due to the completion of post-earthquake projects and the disposal of the Kars plant, which was sold on Dec 1, 2025. Ready-mixed concrete and aggregates are expected to remain broadly stable or decline slightly, amid the negative trend in the Turkish market. Despite these headwinds, Turkish cement volumes on the domestic market increased 4% in 2025, despite an economic context marked by hyperinflation and high interest rates that continue to curb new construction projects and public spending on infrastructure, according to the company.

Post-earthquake reconstruction activity remained relevant throughout 2025, though it showed signs of progressive slowdown. Cement and clinker exports recorded a modest increase compared to 2024, offsetting a ban on Israel and lower sales in Georgia with higher sales in Albania, Bulgaria, Romania and Africa, the company said.

Regional divergence

Egypt emerged as a bright spot for Cementir in 2025, with white cement sales volumes increasing 12%, driven by strong export growth of 21% to the US, Morocco, the Middle East and France. However, the domestic market contracted for the third consecutive year, with volumes down 4% due to weakness in the construction sector and temporary suspension of government payments to contractors as part of the International Monetary Fund's reform plan, according to the company's press release.

The company's Egypt operations faced significant headwinds in 2025 following the reactivation of a second production line that had been idle for nine years. The restart generated a series of problems that disrupted business continuity and led to clinker quality issues, resulting in increased production costs of approximately €4 million due to the need to purchase clinker from third parties. These issues were resolved by the end of June, though the company continued to procure clinker from external suppliers into the second half of the year.

In China, sales revenue decreased by 9.5% to EUR 49.9 million from EUR 55.1 million in 2024, due to lower sales prices amid strong competition and stagnant demand despite the government's economic stimulus measures. The country continues to face pressures related to deflation, high public debt, falling construction activity, youth unemployment, and the tariff war with the US, according to Cementir.

In Malaysia, total volumes increased by 10%, mainly due to higher clinker shipments to Australia compared to the previous year. The domestic market, although marginal in terms of volume, recorded a 5% drop, held back by high unsold apartment inventories and difficulties in accessing credit. Cement exports increased by 2% compared to 2024, with higher deliveries to Cambodia, India and Myanmar, offset by lower volumes to China and the Philippines, according to the company.

In the Nordic region, Denmark's macroeconomic environment continued to weigh on the construction sector, with grey cement volumes on the domestic market falling in line with expectations, while cement volumes declined more sharply. In Norway, there were signs of market recovery, with higher volumes sold and fixed-cost efficiencies, despite lower sales prices and higher variable costs. In Sweden, performance was attributed to higher sales prices, particularly in ready-mixed concrete, which offset higher production costs.

In Belgium, sales volumes on the domestic market decreased by 3% year over year due to persistently weak demand driven by international tensions, high material costs, and low market confidence. Exports fell by 5%, penalized by the negative performance of the residential sector in northern France, while sales to the Netherlands remained stable. There was also a recovery in exports in the last months of the year, according to the company.

In the US, sales volumes of white cement remained in line with 2024 levels, a better result than the market trend, which indicated an expected decrease of about 7% in the residential segment, the main outlet market for the product.

Platts, part of S&P Global Energy, last assessed Platts CEMDEX at $54.50/metric ton FOB Turkey and the Platts Clinker Turkey price at $45.50/mt FOB March 12.