Trading Update for Q3 2026

Steppe Cement delivered strong revenue growth driven by higher prices and currency gains.

What the company is saying

Steppe Cement reports unaudited Q3 2026 revenue of KZT 21,824 million (USD 47.2 million), a 19% increase over Q3 2025. For the first nine months of 2026, revenue reached KZT 51,321 million (USD 107.3 million), up 32% from KZT 39,002 million (USD 75.0 million) in the same period of 2025. Management attributes this growth to a 28% increase in KZT product prices and a 9% appreciation of the Kazakh tenge against the US dollar, despite a 6.5% decline in Q3 sales volume. The company highlights that average delivered cement prices rose to KZT 31,523 (USD 65.9) per tonne, up from KZT 25,145 (USD 48.4) per tonne last year. The expansion project is described as progressing on time and on budget, with funding in place, but no quantitative milestones are provided. The announcement projects Steppe Cement will achieve a 14% market share for the year, with Kazakhstan’s total market demand expected at 14.5 million tonnes. The tone is confident, emphasizing pricing power and operational execution.

What the data suggests

The disclosed figures show robust top-line momentum, with Q3 2026 revenue up 19% and nine-month revenue up 32% year-on-year. The average price per tonne increased by 25% in KZT and 36% in USD, outpacing inflation and reflecting both pricing discipline and favorable currency movements. Sales volume for the first nine months rose modestly to 1.63 million tonnes from 1.55 million tonnes, but Q3 volume declined by 6.5%, indicating that revenue gains were price-driven. The Kazakh cement market remained stable at 11.2 million tonnes for the first nine months, with imports at 8.1% of consumption and exports near 1.0 million tonnes. The company’s expectation of a 14% market share is not yet realised but is consistent with current sales volumes. No information is provided on profitability, costs, or cash flow, so it is unclear if revenue growth is translating into higher earnings. The expansion project is referenced as on schedule and funded, but without financial or timeline specifics.

Analysis

The announcement is generally proportionate in tone, with most claims supported by realised revenue, volume, and pricing data for Q3 and the first nine months of 2026. The only forward-looking statements relate to the ongoing expansion project (described as on time and on budget, but without quantitative evidence), projected full-year market demand, and expected market share. These projections are routine for a trading update and not overstated. However, the absence of any profitability, margin, or cash flow disclosure means investors cannot assess whether strong revenue growth is translating into improved earnings or value. The mention of an expansion project with funding in place signals capital intensity, but the lack of detail on capex, timeline, or expected returns limits the ability to judge its impact. Overall, the narrative is factual and not inflated, but the signal is capped at weak_positive due to incomplete financial disclosure.

Risk flags

• ●The company’s revenue growth is heavily reliant on price increases and currency appreciation, while Q3 sales volume actually declined by 6.5%. If pricing power weakens or the tenge depreciates, revenue momentum could reverse.
• ●No profitability, margin, or cash flow data is disclosed, making it impossible to assess whether higher revenue is translating into improved earnings or sustainable value.
• ●The expansion project is described as on time and on budget with funding in place, but no quantitative details, milestones, or capex figures are provided, leaving execution and cost overrun risks unquantified.

Bottom line

Steppe Cement’s Q3 and nine-month 2026 update shows strong revenue growth driven by higher cement prices and a stronger tenge, with sales volumes stable over nine months but down in Q3. The company’s ability to raise prices above inflation and currency gains has offset volume pressure, but the lack of profitability or cash flow disclosure means investors cannot judge underlying earnings quality. The expansion project is said to be progressing as planned, but without hard data on timing or spend, its impact remains uncertain. The market environment appears steady, with Kazakhstan’s cement demand flat and imports at 8.1%. The most important takeaway is that Steppe Cement is delivering on top-line growth, but the absence of bottom-line metrics and detailed project updates leaves key questions unanswered for investors.

Announcement summary

(AIM: STCM) Steppe Cement Ltd provided a trading update for the third quarter ended 30 September 2026. The company generated revenue of KZT 21,824 million (approximately USD 47.2 million) in Q3 2026, representing a 19% increase over Q3 2025 revenue of KZT 18,284 million (approximately USD 34.1 million). For the nine months ended 30 September 2026, revenue was KZT 51,321 million (approximately USD 107.3 million), up 32% from KZT 39,002 million (approximately USD 75.0 million) in the same period of 2025. The revenue increase in Q3 2026 was attributed to the appreciation of the Kazakh tenge and a 28% increase in KZT price of products sold, despite a 6.5% drop in volume. For the first nine months of 2026, sales volume totaled 1.63 million tonnes, compared to 1.55 million tonnes in 2025. The average price (ex-VAT) for delivered cement was KZT 31,523 (approximately USD 65.9) per tonne in the first nine months of 2026, up from KZT 25,145 (approximately USD 48.4) per tonne in 2025, representing a 25% increase in KZT and a 36% increase in USD, due to a 9% appreciation of the Kazakh tenge against the US dollar (from 520 to 478 KZT/USD). The company stated that its expansion project continues on time and on budget with funding in place. Kazakhstan's domestic cement market amounted to 11.2 million tonnes in the first nine months of 2026, in line with 2025. Imports represented 8.1% of domestic consumption, and cement exports reached close to 1.0 million tonnes over the same period. For the full year, domestic market demand is projected at around 14.5 million tonnes, broadly unchanged from 2025. Steppe Cement is expected to achieve a market share of approximately 14% for the year. Javier del Ser Pérez is the Executive Chairman of Steppe Cement Ltd. Strand Hanson Limited acts as Nominated & Financial Adviser and Broker.

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