RAK Ceramics achieves net profit growth of 6.2% during 2025

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Ras Al Khaimah, February 12 / WAM / Ras Al Khaimah Ceramics, one of the largest companies specializing in ceramic lifestyle solutions, announced a strong financial performance for the fourth quarter and the year ending December 31, 2025.

The company recorded high gross profit margins and notable growth in net profits during the fourth quarter and fiscal year 2025, despite continuing challenges in some markets, and strong activity in the real estate and construction sectors in the UAE continued to support revenue growth, driven by an increased contribution from business projects with higher profit margins and luxury segments.

Total revenues in the last quarter of 2025 amounted to about 856.4 million dirhams, a decrease of 1.7% compared to the same period of the previous year, while total revenues in the fiscal year 2025 increased by 1.6% to reach 3.28 billion dirhams compared to the previous year.

The gross profit margin increased in the last quarter of 2025 to 39.1% compared to 37.2% during the same quarter of last year, and the gross profit margin increased during the fiscal year 2025 to 40.0% compared to 39.3% in the fiscal year 2024.

In the last quarter of 2025, profit before tax increased by 14.5% to reach 94.0 million dirhams compared to the same period of the previous year, and profit before tax in the fiscal year 2025 recorded a growth of 19.9% to reach 331.8 million dirhams compared to last year.

As for net profit after tax in the last quarter of 2025, it rose by 2.5% to reach 65.8 million dirhams, while net profit after tax in the fiscal year 2025 jumped by 6.2% to reach 248.5 million dirhams, compared to 234.1 million dirhams in the same period last year.

EBITDA increased by 1.0% to reach 159.6 million dirhams in the last quarter of 2025, compared to 158.1 million dirhams in the corresponding period of the previous year.

Earnings before interest, taxes, depreciation and amortization also witnessed an increase of 5.3%, reaching 623.6 million dirhams in the fiscal year 2025, compared to 592.2 million dirhams in the previous year.

EBITDA margins increased by 0.5% to reach 18.6% in the fourth quarter of 2025 compared to 18.1% in the same period last year, and reached 19% in fiscal year 2025, an increase of 0.7% from the previous year.

Net debt recorded 1.49 billion dirhams, an increase of 7.1% compared to the same period of the previous year, mainly due to increased capital spending related to modernizing factories in the country. The ratio of net debt to earnings before interest, taxes, depreciation and amortization also increased from 2.35 times in the last quarter of 2024 to 2.40 times in the last quarter of 2025.

Abdullah Massad, CEO of RAK Ceramics Group, said: We feel very optimistic about the progress we have made this year, especially with regard to expanding profit margins, improving the efficiency of manufacturing operations, and enhancing the strength of our business in the UAE. Despite the short-term challenges in some markets, we continue to implement initiatives for transformation and targeted growth across our investment portfolio.

Massad added: Thanks to our reliance on a strong base, a clear strategy, and continuous investments in developing capabilities, innovation and sustainability, we are well positioned to achieve profitable growth and enhance our global presence in the coming years.