Steppe Cement Reports Strong H1 2026 Sales Growth and Provides Major Expansion Update

Steppe Cement has put out a genuinely strong first-half trading update. The headline numbers are hard to ignore: sales volumes rose 15% to 978,950 tonnes, while revenue climbed 43% to KZT 29,588 million, or about USD61 million. In a market the company says was flat overall, that is a solid result and suggests it is taking share rather than just riding a buoyant industry.

The catch is that this is not a simple straight-line growth story for the full year. Management is guiding for 2026 sales of 1.95 million tonnes, which it says will be below 2025 levels because it started the year with lower clinker inventory. Clinker is the key intermediate product used to make cement, so if you begin the year with less of it, that can cap how much cement you can sell later on.

Steppe Cement H1 2026 key figures: sales volumes, revenue, pricing and market share

Metric	H1 2026	H1 2025	Change
Cement sold	978,950 tonnes	850,424 tonnes	15%
Revenue	KZT 29,588 million	KZT 20,717 million	43%
Revenue in USD terms	Approximately USD61 million	Approximately USD40 million	Not disclosed as a percentage
Average delivered cement price	KZT 30,224 per tonne	KZT 24,361 per tonne	Up
Ex-factory cement price	KZT 27,747 per tonne	KZT 21,126 per tonne	Up
Market share	15%	13%	Up 2 percentage points

Steppe Cement revenue growth was strong because volumes and prices both moved higher

The standout feature here is that Steppe Cement did not just sell more tonnes. It also sold them at much better prices. The average delivered price, meaning the price including transport to the customer, increased to KZT 30,224 per tonne from KZT 24,361, while the ex-factory price, meaning the price at the plant gate before delivery, rose to KZT 27,747 from KZT 21,126.

That matters because revenue growth driven by both volume and pricing is usually more convincing than revenue growth driven by one factor alone. A 15% increase in tonnes is good. A 43% increase in KZT turnover is better, because it shows the company is getting more value from each tonne sold as well.

Management also notes that a significant part of the price increase in USD terms came from the Kazakh Tenge appreciating by 7% against the US dollar. That is worth keeping in mind. The underlying pricing improvement is still real in local currency, but the USD comparison gets a helpful lift from exchange rates.

Market share gains in a flat Kazakhstan cement market are a big positive

One of the most encouraging lines in the update is that the domestic cement market was flat year-on-year, while exports and imports were also steady. In plain English, the pie did not get bigger. Yet Steppe Cement increased its market share to 15% from 13%.

That is a meaningful gain. It suggests the company outperformed rivals, either through pricing, distribution, customer relationships, or all three. When a company grows in a flat market, it usually means it is doing something right operationally.

There is also a practical element to its strategy. Transport and electricity costs continued to rise, so the company remains focused on markets near the factory. That may sound dull, but it is sensible. Cement is a heavy, low-value-per-tonne product, so delivery costs can eat into margins quickly if you are shipping too far.

Why Steppe Cement full-year 2026 sales guidance tempers the excitement

For all the good first-half momentum, the company expects full-year sales of 1.95 million tonnes, which it says will be below 2025 levels. The reason given is lower clinker inventory carried into the year. That tells investors the second half may not match the strength of the first on a volume basis.

This is the main note of caution in the announcement. Strong H1 numbers are great, but if the business is inventory-constrained, there may be a ceiling on near-term growth. So this update is positive, but not a licence to assume that every quarter from here gets stronger.

The good news is that management says production levels have been maintained broadly in line with last year. That suggests the issue is more about starting inventory than about a factory problem or a sudden drop in demand.

Steppe Cement expansion project to 2.5 million tonnes looks on track for summer 2027

The longer-term story here is the expansion project. Steppe Cement says the construction project to expand capacity to 2.5 million tonnes is 90% signed, all contract advances have been paid, and progress is in line with plan. Major demolition and foundation work are nearing completion, while structural work is starting across most areas of the site.

More than 150 workers are on site, and commissioning is still expected in summer 2027. That is encouraging because project delays and budget creep are common risks in heavy industry. At this stage, management is signalling that the build is moving properly rather than drifting.

The financing angle is also interesting. The company says it is currently funding the project out of cash flow and would only consider issuing debt if it chose to expand the current project further. That is conservative and shareholder-friendly on the face of it, though investors should remember the RNS does not disclose current cash levels or project cost details.

USD contract exposure and currency hedging are worth watching

There is one clear risk management point in the update. Because most of the expansion contracts are signed in USD, the company aims to hedge most of its currency exposure. Hedging is simply the use of financial protection to reduce the impact of exchange-rate moves.

That is a sensible move. If your project costs are tied to the US dollar, currency swings can create nasty surprises. The company has at least shown it is alert to that risk rather than leaving it to chance.

Kazakhstan inflation and interest rates still create a tough operating backdrop

The macro backdrop remains far from easy. Inflation eased to 10.3% from 11.3% in the first half, but that is still high. The National Bank base rate stands at 17%, compared with 16.5% a year earlier, although it is below the 18% level seen between October 2025 and early June 2026.

For Steppe Cement, that means input costs and financing conditions are still not especially friendly. So the H1 performance looks even better when set against that backdrop. The company is delivering growth while dealing with higher transport and electricity costs and a still-tight monetary environment.

What this Steppe Cement RNS means for retail investors

My read is that this is a good update with one important caveat. The positive side is clear: higher sales, much stronger revenue, firmer pricing, market share gains, and an expansion project that appears to be moving on schedule. Those are all the ingredients of a business strengthening its position.

The negative side is that full-year sales are still expected to be below 2025 levels, and that limits how far investors should run with the H1 momentum. It also means the real prize may sit further out, when the 2.5 million tonne expansion is up and running in 2027.

So, for retail investors, this looks more like a steady operational win than a blowout re-rating moment. Steppe Cement appears to be executing well in the present while building for a bigger future. That is attractive, but the inventory constraint and cost pressures mean there is still some grind in the story.

Steppe Cement investor presentation details for shareholders

The company also announced that Javier del Ser, Executive Chairman, and Petr Durnev, Chief Executive Officer, will host a live presentation on 9 July 2026 at 10:00 BST via Investor Meet Company. Existing and potential shareholders can submit questions before the event up to 8 July 2026 at 10:00 BST, or during the presentation itself.

That is worth paying attention to, because the most useful part of these events is often the tone around second-half demand, pricing discipline, and how management talks about the 2027 expansion. The RNS gives the numbers. The presentation may give the confidence level behind them.