In a resilient display of strategic market execution, RAK Ceramics PJSC has announced its financial results for the second quarter of 2026, demonstrating the fundamental strength of the RAK brand. Despite a highly challenging global macroeconomic environment marked by geopolitical shifts and supply chain bottlenecks, RAK Ceramics maintained robust operational continuity, delivering stable revenues and a solid EBITDA, reflecting the company’s agile management.
Consistent Revenue and Margin Expansion
For the second quarter ending June 30, 2026, the global ceramics giant reported a total revenue of AED 822.8 million. While this represents a marginal 0.5 percent year-on-year decline from the AED 826.8 million recorded in Q2 2025, the underlying fundamentals of the business remain exceptionally strong. Looking at the broader first half of the year, H1 2026 total revenue stood at AED 1,583.5 million, a slight decrease of 1.2 percent from the AED 1,603.3 million achieved during the same period in 2025.
Notably, profitability metrics at the gross level saw a positive upward trajectory. In Q2 2026, the gross profit margin increased to an impressive 41.0 percent, up from 40.6 percent in Q2 2025. For H1 2026, the gross profit margin remained heavily fortified and stable at 40.2 percent, perfectly in line with H1 2025 performance. This margin protection was largely driven by remarkably strong product demand across key regional markets, including the UAE, the Kingdom of Saudi Arabia (KSA), and Bangladesh. By coupling this regional demand with proactive management actions and highly disciplined execution, RAK Ceramics successfully navigated external pressures to maintain uninterrupted business continuity and overall profitability.
Solid EBITDA and Bottom-Line Performance
Examining the core earnings potential, RAK Ceramics delivered a highly respectable EBITDA performance. In Q2 2026, EBITDA declined marginally by just 2.0 percent to AED 157.5 million, down slightly from AED 160.8 million in Q2 2025. For the full first half of 2026, EBITDA reached AED 284.8 million, representing a 3.9 percent year-on-year decline from the AED 296.4 million recorded in H1 2025.
On the bottom line, the company actually saw growth in its net earnings for the quarter. In Q2 2026, net profit after tax increased by 2.9 percent year-on-year, reaching AED 68.3 million compared to AED 66.4 million in Q2 2025. Meanwhile, profit before tax in Q2 2026 saw a fractional decline of 1.1 percent to AED 85.7 million. For the broader H1 2026 period, net profit after tax stood at AED 106.5 million, compared to AED 115.2 million in H1 2025.
The Group also continued to effectively manage its leverage. The net debt position was reduced to AED 1.52 billion, an impressive 2.6 percent year-on-year decrease. Furthermore, the critical net debt to EBITDA ratio improved, standing at a healthy 2.48x, down from 2.53x in March 2026.
Navigating Supply Chain Dynamics
A major component of this resilient performance stems from the Group’s intense focus on strengthening its market share across the Middle Eastern region while making every effort to support customers in more volatile international markets. As a premier regional manufacturer equipped with massive production and distribution capabilities, RAK consistently maintained product availability. RAK Ceramics, headquartered in Ras Al Khaimah, has long been a bellwether for the region’s industrial sector. The ability of the company to uphold its EBITDA margins while navigating fluctuating freight rates showcases the inherent benefits of a localized, vertically integrated supply chain. This guaranteed reliable service delivery across its vast global network, directly supporting customers, supply chain partners, and the wider construction ecosystem throughout a turbulent quarter.
Leadership Insights
Reflecting on the financial achievements of the period, Abdallah Massaad, Group Chief Executive Officer of RAK Ceramics, emphasized the company’s ability to adapt. He noted that the firm delivered a remarkably stable performance despite a quarter dominated by regional geopolitical tensions, supply chain disruptions, and highly elevated logistics costs.
“Throughout this period, our priority was clear: increasing our market share across the region, while making every effort to support customers in other markets. Backed by our strong brand, product quality, and regional manufacturing footprint, we responded quickly to changing market conditions, leveraging locally sourced raw materials, alternative logistics routes, and other practical solutions to maintain reliable supply and service across our network,” stated Massaad.
Looking to the future, the RAK Ceramics CEO reaffirmed the company’s strategic vision:
“Looking ahead, we remain focused on driving value-led growth, capturing additional market share opportunities in our core markets, and delivering value creation initiatives across our European, India & Bangladesh operations. We remain confident in our ability to deliver sustainable long-term value for our stakeholders.”
