Fauji Cement Poised for Record Earnings Surge as Sector Rebounds and Exports Fuel Growth

Islamabad, Pakistan - July 22, 2025 - Fauji Cement Company Limited [https://fccl.com.pk/eng/](PSX: FCCL), one of Pakistan's fastest-growing and most financially resilient cement producers, is expected to report record earnings growth in its upcoming Q4 results on August 8, 2025, following a strong sector-wide rebound and an aggressive export-led strategy.

According to a preview by Topline Securities, FCCL is forecasted to post quarterly earnings per share (EPS) of PKR 1.40, reflecting a remarkable 181% increase year-on-year, the highest among major listed cement players. The company's game-changing acquisition of Askari Cement's Wah plant has unlocked significant economies of scale and access to export markets - with 87% of FCCL's export volume now linked to this high-capacity facility.

The export story has become central to FCCL's earnings engine. The industry saw export volumes surge 35% YoY in the June quarter, largely driven by clinker shipments to Sri Lanka, East Africa, and the Gulf. Fauji Cement has emerged as a dominant player, leveraging its proximity to Port Qasim and competitively priced coal from multiple sources, including Afghanistan and Richards Bay, to maintain cost leadership.

Fauji Cement's recent nine-month performance (as per its financial disclosures) further confirms its fundamental strength. The company posted revenue of PKR 50.6 billion and a net profit of PKR 5.4 billion, translating to an EPS of PKR 2.24, up over 57% from the prior year. The company maintained gross margins of 27%, even as peers struggled with fuel cost volatility - a testament to its disciplined cost management and effective supply chain strategy.

Topline Securities notes that sector-wide finance costs are down 25% YoY, thanks to lower interest rates and strategic debt repayments. FCCL [https://fccl.com.pk/eng/], with its strong balance sheet and operational cash flows, is benefiting directly from this macro tailwind. Analysts also anticipate a PKR 2.50 per share dividend, further enhancing the stock's appeal to yield-seeking investors.

Beyond numbers, FCCL is positioning itself as a long-term sustainability leader. The company is actively investing in waste heat recovery systems and alternate fuels, aligning with Pakistan's green transition goals and structurally lowering energy costs. These steps not only support margins but will also be key to meeting ESG benchmarks increasingly valued by institutional investors.

A Sector Re-Rating in Motion

The cement sector is widely seen as undergoing a cyclical re-rating. According to Topline, aggregate earnings are expected to grow 47% in FY25, with blended P/E multiples still under 6 times , offering deep value. FCCL stands out in this rally - its combination of exports, lower leverage, high efficiency, and sector tailwinds make it a prime earnings-beta play in the PSX [https://fccl.com.pk/eng/].

With a forward EPS run rate suggesting FY25 EPS exceeding PKR 6.20, many market watchers see FCCL as deeply undervalued at current levels. As Pakistan's housing and infrastructure capex resumes and exports remain robust, FCCL's upside potential looks considerable.

About Fauji Cement

Fauji Cement Company Limited is one of Pakistan's leading cement manufacturers, part of the Fauji Foundation Group. With three plants across Wah, DG Khan, and Nizampur, it has a total production capacity exceeding 10 million tons annually. The company serves both domestic and export markets and is recognized for operational excellence and strong governance.

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