Steppe Cement Reports 33% Revenue Growth in 2025, Announces Board Changes and $35M Capacity Expansion

Big year for Steppe Cement: 33% revenue growth, stronger volumes, and a bold expansion plan

Steppe Cement has delivered a punchy year-end update for 2025, combining double-digit revenue growth with a plan to lift capacity to 2.5 million tonnes. There are meaningful board changes too, with the former CEO stepping up to Executive Chairman and a seasoned industry insider taking the helm as CEO. Here is what matters for investors and why.

2025 trading: revenue up 33% as volumes surge

Revenue rose to KZT 52,375 million (approximately USD 100 million), up 33% in KZT terms from KZT 39,244 million (approximately USD 84 million) in 2024. Volumes did a lot of the heavy lifting: cement sales reached approximately 2.07 million tonnes, all sold domestically, up 21% year on year. Management credits several years of incremental processing improvements and notes the factory is now at maximum capacity.

Average delivered price (ex-VAT) increased 10% to KZT 25,266 per tonne. In USD terms, pricing was slightly lower at USD 48 per tonne versus USD 49 in 2024, reflecting the average FX rate of USD:KZT 1:521.59 in 2025 (1:469.11 in 2024). The average ex-factory price was KZT 22,261 (approximately USD 43) per tonne compared with KZT 19,664 (approximately USD 42) in 2024. Transportation costs were approximately USD 6 per tonne.

Metric	2025	2024
Revenue	KZT 52,375 million (~USD 100 million)	KZT 39,244 million (~USD 84 million)
Sales volume	~2.07 million tonnes	Not disclosed
Delivered price (ex-VAT)	KZT 25,266/t; USD 48/t	KZT 22,916/t; USD 49/t
Ex-factory price	KZT 22,261/t (~USD 43)	KZT 19,664/t (~USD 42)
Transport cost	~USD 6/t	Not disclosed
Kazakh cement consumption	14.5 million t	11.85 million t
Steppe domestic market share	14.3%	14.5%
Imports into Kazakhstan	~1.0 million t	~0.7 million t
Exports from Kazakhstan	~0.7 million t	~0.9 million t
Official inflation (Kazakhstan)	12.3%	8.6%
Average USD:KZT	1:521.59	1:469.11

Why this matters

• Top-line momentum is real – higher volumes plus higher prices in KZT offset FX headwinds, delivering strong revenue growth.
• Market demand is robust – national cement consumption jumped to 14.5 million tonnes, mostly on strong housing construction.
• Competition is edging up – imports increased to ~1.0 million tonnes and Steppe’s share slipped marginally to 14.3%.
• Inflation is a headwind at 12.3% – cost control and energy efficiency will matter more in 2026-2027.

Note: The RNS states the full results and audited accounts (in USD) are expected in Q2 2025.

Board changes: continuity with added local and financial expertise

Longstanding Chairman Xavier Blutel has stepped down. Javier del Ser moves from CEO to Executive Chairman, while Petr Durnev becomes CEO alongside his role as General Director of Central Asia Cement JSC. Mr Durnev has been with the business since 1998 and has led CAC JSC since 2013, bringing deep local operational expertise.

Governance is bolstered with Rupert Wood as Senior Independent Non-Executive Director and the appointment of Independent Non-Executive Director, Saida Djarbolova. Saida brings 30+ years of international finance experience from senior roles at ING, alongside current NED roles in Kazakhstan and Uzbekistan.

Post changes, the board comprises an Executive Chairman, a CEO and three non-executives, two of whom are independent.

What investors should think

• Executive Chairman structure – more hands-on, but requires strong independent oversight. Two independent NEDs is helpful.
• Operational continuity – promoting a seasoned internal leader to CEO should support delivery of the capex project.
• Stronger finance bench – useful as the company lines up debt financing for expansion.

USD 35 million expansion: line 6 upgrade to lift capacity to 2.5 million tonnes

With the factory already at maximum capacity, Steppe Cement plans to expand to 2.5 million tonnes by upgrading clinker line 6 from 3,000 tonnes per day (tpd) to 4,500 tpd. Clinker is the intermediate material used to make cement. The project will be delivered by a mix of local and foreign EPC contractors (engineering, procurement and construction).

Scope of works on line 6

• Install a new dynamic separator in raw mill 4 to increase production to 125 tonnes per hour (tph).
• Re-commission raw mill 5 to supply an additional 125 tph.
• Install two new elevators for raw meal into the kiln.
• Increase the size of the main bag filters.
• Modify and extend the current in line calciner.
• Modify and extend the upper cyclones of the preheater.
• Increase the coal feed to the preheater.
• Change sections and seals of the kiln and increase its speed.
• Install a tertiary air duct.
• Replace the current cooler to increase capacity and heat recovery.
• Feed the coal mill with inert gas and increase its capacity.
• Increase the size of various fans.

Cost, financing and timeline

• Total project cost: approximately USD 35 million, including approximately USD 5 million for ecological improvements and Best Available Technology.
• Financing: expected to include USD 25 million of debt on attractive commercial terms indicated by local banks (terms not disclosed).
• Schedule: 18 months with completion targeted for summer 2027.
• Operational impact: line 6 will stop for 3 months starting April 2027 to connect and integrate the new equipment; both lines operate otherwise.

Economics and efficiency

• Energy savings on line 6 of up to USD 1.5 per tonne.
• EBITDA uplift of approximately USD 8 million upon completion, based on current pricing. EBITDA is earnings before interest, tax, depreciation and amortisation – a cash profit proxy.

Why this expansion could be value-accretive

• Demand backdrop is favourable – domestic consumption rose to 14.5 million tonnes in 2025 and imports increased, suggesting supply is tight in places.
• Scale benefits – higher capacity plus energy savings should improve unit economics.
• Execution and financing are the swing factors – project split across multiple EPCs, a 3-month line shutdown, and USD 25 million of new debt introduce project and balance sheet risk. Commercial terms are expected to be attractive but are not disclosed.

Dividend signal and near-term outlook

The Board intends to maintain dividend payments at current levels over the next two years, assuming market conditions remain at the current level. That is a confident signal given the capex programme, but keep in mind the cash demands of the project and elevated inflation at 12.3% in Kazakhstan.

For those tracking the story, the company will host a live presentation on 22 January 2026 at 10 a.m. London time.

The bottom line: a capacity-constrained winner gearing up for growth

This update is broadly positive. Steppe Cement grew revenue 33% on strong domestic demand and operational improvements, even as FX clipped USD pricing. Market share is steady, the plant is full, and management is moving decisively to add capacity with meaningful efficiency upgrades.

The risks are clear – higher imports, double-digit inflation, a multi-contractor upgrade, a scheduled 3-month line shutdown, and new debt whose terms are not disclosed. But if the project lands on time and on budget, the targeted ~USD 8 million EBITDA uplift and energy savings look attractive against a USD 35 million spend. For now, it is a solid operational performance paired with a sensible plan to meet a growing market.

Quick jargon check

• Ex-VAT: price before value-added tax.
• Ex-factory: price at the plant gate, excluding transport.
• tpd/tph: tonnes per day/hour – measures of capacity.
• Clinker: the intermediate product fired in a kiln, then ground to make cement.
• EPC: engineering, procurement and construction – turnkey contracting model.
• EBITDA: earnings before interest, tax, depreciation and amortisation.