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

Steppe Cement’s 2025: Big revenue jump, maxed-out plant, bigger plans

Steppe Cement has posted a strong trading update for the year to 31 December 2025, with revenue up 33% in KZT terms to KZT 52,375 million (approximately USD 100 million). Volumes rose 21% to approximately 2.07 million tonnes, all sold domestically, as the company leaned into Kazakhstan’s booming demand. Management says years of incremental process tweaks have paid off – the factory is now running at maximum capacity.

Prices helped too. The average delivered price, ex-VAT (excluding value-added tax), was KZT 25,266 per tonne, up 10% year on year. In USD terms, that nudged slightly lower to USD 48 per tonne from USD 49 in 2024, reflecting the weaker tenge. The average ex-factory price – the price at the plant before transport – was KZT 22,261 per tonne (approximately USD 43), versus KZT 19,664 (approximately USD 42) a year ago. Transport costs were about USD 6 per tonne.

All figures are unaudited.

Revenue (KZT)	KZT 52,375 million (+33%)
Revenue (USD approx.)	USD 100 million
Sales volume	\~2.07 million tonnes (+21%)
Avg delivered price (ex-VAT)	KZT 25,266/tonne; USD 48/tonne
Avg ex-factory price	KZT 22,261/tonne; ~USD 43/tonne
Kazakhstan cement consumption	14.5 million tonnes (2025) vs 11.85 million (2024)
Steppe Cement domestic share	14.3% (2025) vs 14.5% (2024)
Imports / Exports	Imports 1.0 million tonnes; Exports 0.7 million tonnes
Inflation (Kazakhstan)	12.3% (2025) vs 8.6% (2024)
USD:KZT average rate	1:521.59 (2025) vs 1:469.11 (2024)

Kazakhstan market is booming – Steppe kept pace, but share nudged down

Cement demand in Kazakhstan jumped to 14.5 million tonnes from 11.85 million tonnes, driven mostly by strong housing construction. Steppe grew volumes 21% but its market share edged down to 14.3% from 14.5%, implying the market grew slightly faster than the company in 2025. Imports rose to 1.0 million tonnes while exports slipped to 0.7 million tonnes, a sign the local market absorbed more supply.

Inflation accelerated to 12.3%, while the average USD:KZT rate weakened to 1:521.59 from 1:469.11. That mix explains why KZT prices rose 10% but the USD price per tonne ticked down. In short: strong demand, firm local pricing, but FX took the shine off in dollars.

USD 35 million capacity expansion to 2.5 million tonnes – here’s the plan

With the plant now at full stretch, Steppe is pushing ahead with a capacity expansion to 2.5 million tonnes. The centrepiece is upgrading clinker line 6 from 3,000 tonnes per day to 4,500 tonnes per day. The works are detailed and practical – exactly what you’d expect from a debottlenecking-led project.

• New dynamic separator in raw mill 4 to lift output to 125 tonnes per hour, plus re-commission raw mill 5 for an extra 125 tonnes per hour.
• Two new elevators for raw meal, larger bag filters, and modifications to the in-line calciner and upper preheater cyclones.
• Increased coal feed and kiln speed, section and seal changes, and a new tertiary air duct.
• Replace the cooler to boost capacity and heat recovery, feed the coal mill with inert gas and increase its capacity, and upsize various fans.

The project cost is estimated at approximately USD 35 million, including around USD 5 million earmarked for ecological improvements and Best Available Technology investments. It will be split across various EPC contractors, both local and foreign.

Funding is expected to include USD 25 million of debt with a term of up to 10 years, a disbursement period of up to two years, and a floating rate currently below 7%. The project should take 18 months, aiming for completion in summer 2027. Operations continue during the works, with a planned three-month shutdown of line 6 from April 2027 to connect and integrate new kit.

EBITDA uplift and payback look reasonable

Management expects the project to deliver energy savings in line 6 of up to USD 1.5 per tonne and increase EBITDA by approximately USD 8 million upon completion, based on current pricing. On a USD 35 million spend, that implies a rough 4-5 year payback, which is sensible for a brownfield upgrade if execution stays on track and demand remains healthy.

Note the financing is expected in USD while revenues are earned in KZT, so there is an FX mismatch to watch. The sub-7% floating rate is attractive in today’s world, but FX and interest rate moves can influence the ultimate cost of capital.

Board changes: new Executive Chairman, new CEO, added bench strength

As flagged previously, longstanding Chairman Xavier Blutel has stepped down. Javier del Ser, formerly CEO, becomes Executive Chairman. The new CEO is Petr Durnev, who also continues as General Director of Central Asia Cement JSC and has been with the business since 1998. Rupert Wood becomes Senior Independent Non-Executive Director.

Steppe also adds an experienced local finance leader to the board: Independent Non-Executive Director Saida Djarbolova, whose background includes senior roles at ING Bank and current NED roles in Kazakhstan and Uzbekistan. The refreshed board now comprises an Executive Chairman, a CEO, and three non-executive directors, two of whom are independent. That looks like continuity of operating leadership with extra governance depth.

Dividend guidance: steady as she goes

The board intends to maintain dividend payments at current levels over the next two years, assuming market conditions remain at current levels. The precise quantum of the dividend is not disclosed here, but the stance signals confidence despite the capex outlay and the planned downtime in 2027.

What this means for Steppe Cement shareholders

• Positive: Strong top-line momentum – revenue up 33% in KZT, volumes up 21% – aligned with a buoyant domestic market.
• Positive: Sensible brownfield expansion to 2.5 million tonnes with a clear scope, targeted energy savings, and a guided ~USD 8 million EBITDA uplift.
• Positive: Dividend guided to be maintained during the investment phase, suggesting balance sheet headroom and cash flow resilience.
• Mixed: Market share slipped slightly to 14.3%, and USD pricing dipped due to FX. Imports rose too, which bears watching.
• Risk: Execution risk on a multi-contractor project and a three-month planned shutdown in 2027. FX mismatch potential with USD debt and KZT revenues.
• Context: Inflation at 12.3% and a weaker tenge underline the importance of efficiency gains and pricing discipline.

Key dates and disclosures to watch next

• Investor presentation on 22 January 2026 at 10 a.m. London time via the Investor Meet Company platform.
• Full audited results: the RNS states publication is expected in Q2 2025, which appears inconsistent with a 2025 year-end. Clarification is needed.
• Financing package details, including final terms for the expected USD 25 million debt and selection of EPC contractors.
• Project progress updates, especially around the summer 2027 completion target and the planned April 2027 line 6 shutdown.

Bottom line

Steppe Cement is riding a strong domestic upcycle and is moving decisively to add capacity and efficiency while keeping dividends steady. The plan is pragmatic, the guided EBITDA uplift is meaningful, and the cost of debt looks manageable. The main watchouts are FX, inflation, and project execution – but if