Steppe Cement’s Q1 2026 trading update: higher prices, heavier volumes, bigger slice of the market
Steppe Cement has kicked off 2026 with momentum. In its unaudited Q1 update, the company reported strong year-on-year gains in both sales volumes and prices, pushing revenue up sharply and nudging market share higher in a seasonally quiet quarter.
There is a minor date inconsistency in the RNS text where “Q1 2025” appears twice in some comparisons. Based on the context and the rest of the disclosure, it is clear the company is comparing the latest quarter against Q1 2025. I’ve used the exact figures provided and flagged the comparisons accordingly.
Key numbers investors should know
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Sales volume | 344,058 tonnes | 276,217 tonnes | +25% |
| Revenue | KZT 9,696 million (approx USD 19.5 million) | KZT 6,465 million (approx USD 12.7 million) | +50% in KZT |
| Average delivered price (ex-VAT) | KZT 28,181 per tonne (approx USD 57) | KZT 23,404 per tonne (approx USD 47) | +20% in KZT |
| Ex-factory price (first 3 months) | KZT 24,939 per tonne (approx USD 50) | KZT 19,625 per tonne (approx USD 39) | +27% in KZT |
| Market share (Kazakhstan) | 16.0% | 13.5% | +2.5 percentage points |
| Kazakhstan cement sales | 2.03 million tonnes | Not disclosed | +2% year-on-year |
| FX (avg USD:KZT) | 497.7 | 510.2 | KZT appreciated c.2.5% |
Notes: The company states all figures are unaudited. “Delivered price” includes transport to the customer; “ex-factory” is the price at the plant gate.
What’s driving the 50% revenue surge?
Two levers: volume and price. Volumes rose 25% to 344,058 tonnes, which is impressive for a winter quarter. At the same time, pricing stepped up meaningfully. The average delivered price climbed 20% in tenge terms, and the ex-factory price was up 27% compared with the same period last year.
It also helps that the tenge strengthened slightly. The average USD:KZT rate moved from 510.2 to 497.7, a 2.5% appreciation in the tenge over the period. The company quotes approximate USD equivalents, but the headline growth is rightly framed in local-currency KZT, where the gains look very strong.
Kazakhstan cement market: demand steady, trade flows shifting
Market-wide cement sales reached 2.03 million tonnes in Q1 2026, up 2% year-on-year. That is a solid outcome given the usual winter slowdown. Against that backdrop, Steppe Cement’s 25% volume growth implies clear market share gains – confirmed by its share rising to 16.0% from 13.5%.
Trade flows moved in Steppe’s favour too. Exports out of Kazakhstan fell 48% year-on-year, while imports shrank to 6.3% of consumption from 8.6%. Less import competition often supports local pricing and utilisation. For the full year, the company expects total cement consumption to be roughly flat with 2025 at about 14.5 million tonnes.
Capacity expansion to 2.5 million tonnes: timing, cost, and benefits
As flagged on 15 January 2026, Steppe Cement has begun expanding to a total production capacity of 2.5 million tonnes. The goal is an extra 0.5 million tonnes by Summer 2027. The company says the project will lower energy consumption per tonne and improve emissions – both margin-friendly and strategically positive in a carbon-conscious world.
The current estimated cost is USD 35 million. Implementation is under way, with six managers assigned and 80 contractor personnel mobilised on site. Utilities, accommodation and auxiliary facilities have been built to support the larger workforce.
Why it matters: pricing power, share gains, and a plan to grow
For shareholders, the update ticks the right boxes. Steppe Cement is selling more at higher prices and capturing a larger slice of a steady market. That dynamic should boost gross margins, especially with the ex-factory price up 27% and the tenge a touch stronger.
The expansion plan adds a medium-term growth angle. If market demand holds near 14.5 million tonnes and imports remain subdued, having more efficient capacity online in 2027 could be well timed. The promised reductions in energy use per tonne should also underpin unit cost improvements once ramped.
Balanced view: what’s positive and what to watch
- Positives:
- Revenue up 50% in KZT on a 25% volume increase – strong operating momentum.
- Market share up to 16.0% from 13.5% – clear competitive gains.
- Pricing strength: delivered and ex-factory prices up 20%-27% in KZT terms.
- Favourable market backdrop: imports down to 6.3% of consumption and exports declining.
- Efficiency angle: expansion designed to cut energy per tonne and improve emissions.
- Watch-outs:
- Financing of the USD 35 million project is not disclosed – clarity on funding mix would help assess balance sheet risk.
- Execution risk on the capacity build and the Summer 2027 timeline.
- Seasonality remains a factor – Q1 can flatter pricing and mix; the key test is the peak construction season.
- FX sensitivity: a weaker tenge could dilute USD-reported metrics, even if KZT pricing holds.
My take: a strong start with credible growth steps
This is a robust Q1 print from Steppe Cement. The company is not just riding the market; it is taking share and pushing through higher prices. In a quarter where national demand was up only 2%, that stands out.
The expansion to 2.5 million tonnes looks strategically sound given the market share trajectory and the potential for cost gains. The price tag of USD 35 million is material for a company in this space, so I would like to see more detail on funding and phasing. Still, the early mobilisation and clear milestones are encouraging.
What I’ll be watching next
- Funding plan and any updates on the USD 35 million project cost.
- Quarterly margin trends as higher pricing and lower energy intensity feed through.
- Market demand through the main building season and whether imports stay subdued.
- Progress markers on the expansion – contractor mobilisation, equipment orders, and commissioning timeline into Summer 2027.
Bottom line: Steppe Cement enters 2026 with momentum. If management delivers the expansion on time and on budget while holding recent pricing gains, the company’s earnings power could look meaningfully better by 2027.
