RAK Ceramics FY2025 Profit Jumps 20%, Margins Improve

RAK Ceramics PJSC has reported strong financial results for the fourth quarter and the full year ending 31 December 2025. The company delivered improved profit growth and stronger margins, despite market challenges in some countries.

The company said strong demand from the UAE real estate and construction sectors supported its performance. Growth was also driven by a higher contribution from project-based business and premium product segments, which offer better margins.

Revenue Performance

In Q4 2025, RAK Ceramics recorded total revenue of AED856.4 million, which was down 1.7% year-on-year.

For the full year 2025, total revenue increased 1.6% year-on-year to AED3.28 billion.

Gross Margin Improvement

RAK Ceramics reported stronger gross profit margins during the year:

• Q4 2025 gross margin: 39.1%, up from 37.2% in Q4 2024

• FY 2025 gross margin: 40.0%, up from 39.3% in FY 2024

Profit Growth

Profit before tax showed strong growth:

• Q4 2025 profit before tax: AED94.0 million, up 14.5% YoY

• FY 2025 profit before tax: AED331.8 million, up 19.9% YoY

Net profit after tax also increased:

• Q4 2025 net profit: AED65.8 million, up 2.5% YoY

• FY 2025 net profit: AED248.5 million, up 6.2%, compared to AED234.1 million in FY 2024

EBITDA Growth and Margins

EBITDA remained stable in Q4 and improved for the full year:

• Q4 2025 EBITDA: AED159.6 million, up 1.0% from AED158.1 million

• FY 2025 EBITDA: AED623.6 million, up 5.3% from AED592.2 million

EBITDA margins also improved:

• Q4 2025 EBITDA margin: 18.6%, up from 18.1%

• FY 2025 EBITDA margin: 19.0%, up 0.7% YoY

UAE Market Leads Growth

The UAE market continued to perform strongly, led by tiles and sanitaryware, supported by the strength of the real estate sector.

In FY 2025, revenue in the UAE increased 13.4% to AED955.8 million. The company said a larger share of project business supported both revenue and margins, especially due to growing demand for large-format porcelain tiles.

CEO Statement

Abdallah Massaad, Group Chief Executive Officer of RAK Ceramics, said the company was encouraged by progress in margin expansion, manufacturing efficiencies, and the strength of its UAE operations.

He added that while challenges remain in certain markets, RAK Ceramics is working on turnaround and growth plans across its portfolio. The company is also investing in capacity expansion, innovation, and sustainability to support future profitable growth and strengthen its global presence.