As a result, the Group’s consolidated bottom line closed the quarter with a net loss of EGP 1.2 billion. It’s worth noting that gross refining margins have recovered substantially in 3Q25 and 4Q25, leading to improved results, with ERC operating above its rated capacity.  Worth noting, as well, that excluding ERC, Qalaa’s revenue grew by 48% y-o-y to EGP 5.1 billion and EBITDA expanded by 8% y-o-y to EGP 1.1 billion. In November 2025, QHRI wrapped up the transfer of the newly issued shares related to the Qalaa Holdings debt-purchase deal, marking the full closure of the transaction, delivering remarkable financial returns to participants and bolstering the Group’s overall financial position.

Key Highlights:

  • Qalaa’s consolidated revenue contracted by 34% y-o-y to EGP 25.1 billion in 2Q25, largely as a consequence of a pre-planned 32-day production shutdown for maintenance at ERC, in addition to the effect of the decline in gross refining margins on ERC’s top line.  Excluding ERC, consolidated revenue grew by 48% y-o-y to EGP 5.1 billion in 2Q25. In parallel, recurring EBITDA shrank by 67% y-o-y to EGP 1.9 billion in 2Q25, following the drop in Qalaa’s consolidated revenue. Finally, the Group reported a consolidated net loss of EGP 1.2 billion in 2Q25, compared to the net loss of EGP 1.4 billion recorded in 2Q24.
  • It is worth noting that ERC’s margins have picked up and an improved performance is expected by 4Q25. Additionally, the company is eyeing a number of projects and initiatives aimed at enhancing and expanding margins.
  • ERC continued to operate above its rated capacity, yet refining margins remain pressured due to the cyclical nature of the business. ERC’s USD-denominated revenue contracted year-on-year, largely due to the pre-planned 32-day maintenance shutdown, in addition to the decline in gross refining margins.
  • ERC has no outstanding receivables from EGPC, which is presently current on all its payments due to ERC.
  • In December 2025, ERC made a payment of USD 417 million to senior lenders, resulting in aggregate debt repayments of USD 574.4 million over the course of 2025. Following this repayment, ERC has reduced its senior debt principal balance from an initial USD 2.35 billion to just USD 63 million as of December 2025, which is scheduled to be repaid in March 2026, allowing the company to begin distributing dividends starting 2026.
  • Qalaa’s remaining portfolio companies continued to demonstrate their strength and resilience across the board, with most business segments achieving top-line growth in 2Q25. Additionally, several portfolio companies achieved solid bottom-line results during the quarter.
    • The continued recovery at Al-Takamol Cement, coupled with solid growth at ASEC Engineering and ASEC Automation, supported the performance of the Group’s cement segment during the quarter.
    • Dina Farms Holding continued to deliver solid top-line growth, despite weak performances at both the Livestock and the Herb Production business segments, on the back of strong performances across several other business segments at Dina Farms, as well as increased sales volumes, higher selling prices, and new product launches at ICDP.
    • ASCOM’s strong revenue growth was largely driven by its two largest USD-denominated revenue generators, ACCM and GlassRock, as well as improved results at ASCOM Mining. Worth noting that the Group’s position as an import substitute and export player across the mining business continued to strengthen Qalaa’s consolidated results.
    • The performance of CCTO’s transportation and logistics business was impacted by a drop in revenue at both its storage and stevedoring services following a decline in volumes. This was offset later in the year through lower variable costs and an increase in the utilization of the inland container depot.
    • TAQA Arabia delivered impressive top- and bottom-line results driven by solid performances across the board.
  • The Group continues to focus on growing its exports and leveraging the cost advantage available to local manufacturers, with Group export proceeds reaching c.USD 19.1 million in 2Q25. Meanwhile, local foreign currency revenue stood at c.USD 420.2 million during the quarter.
  • In November 2025, Qalaa Holdings successfully completed the transfer of the capital-increase shares from QHRI to the shareholders who participated in the company’s debt-purchase transaction. This marks the full conclusion of all procedures related to the transaction, while generating outstanding investment returns for participants. This milestone follows the completion of Qalaa’s capital increase in October 2025, which raised the company’s issued and paid-in capital from EGP 9.1 billion to EGP 21.1 billion, distributed across 4.2 billion shares. The capital increase was executed following QHRI’s purchase of USD 240.7 million in foreign senior debt as part of a settlement agreement with foreign banks and international lenders.
  • In 2Q25, Qalaa recorded an interest provision of EGP 255.5 million relating to the portion of the Senior Debt that was previously owed to Egyptian banks. This liability continues to be reflected on Qalaa’s balance sheet pending the full satisfaction of all conditions stipulated in the settlement agreement by 2030. However, this does not reflect the actual amounts currently owed to these lenders; rather, it represents the pre-settlement balances.
    • It is important to note that, upon Qalaa’s exercise of its Call Option over TAQA’s shares in accordance with the terms of the settlement agreement, all outstanding amounts, including any accrued interest, will be written off. The TAQA Call Option exercise price is expected to be lower than the outstanding amounts recorded at that time.
  • In addition, under the restructuring agreement signed in 2024 between SPVs fully owned by Qalaa and a local bank, a total of USD 44 million, together with all related accrued interest pertaining to loans owed to this bank, which as of 2Q25 amounted to EGP 242.4 million, is expected to be written off following the full repayment of the amounts due to the bank in 2033.
  • Qalaa’s strategy will continue to focus on the following elements:
    • Qalaa will continue driving growth through small incremental investments in its subsidiaries, expanding cashflows, and thereby reducing its debt to cashflow ratios. Management is confident this strategy will continue to deliver the desired results.
    • Strategic plans are currently underway to initiate five IPOs over the coming two years for select high-growth subsidiaries to unlock shareholder value, enhance financial flexibility, and facilitate the valuation of Qalaa’s shares. National River Port Management Company will be the first subsidiary to IPO, with an expected listing date of around mid-2026.
    • As of 31 December 2025, Qalaa reduced its total consolidated debt by approximately EGP 39 billion, driven by ERC’s repayment of USD 574.4 million during the year, in addition to the capitalization of USD 240.7 million in debt at QHRI.
    • While cashflow bottlenecks persist across the Group, the overall liquidity position has improved significantly. Additionally, further improvements are anticipated across all major operations, especially on the back of ERC being able to distribute dividends starting 2026.
    • Following improved performances at the subsidiary level and the completion of the QHRI transaction, Qalaa’s shareholders’ equity has turned positive following two years of negative equity, reaching EGP 3.4 billion, and is expected to increase substantially by year-end 2025.

Cairo: Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange), released today its consolidated financial results for the three- and six-month periods ending 30 June 2025. During the quarter, Qalaa’s revenue shrank by 34% y-o-y to EGP 25.1 billion, largely as a consequence of the decline in ERC’s revenue due to a 32-day pre-planned production shutdown for maintenance, as well as the decline in refining margins. As a result, Qalaa’s EBITDA fell by 67% y-o-y to EGP 1.9 billion in 2Q25.

ERC’s USD denominated revenue fell by 42% y-o-y in EGP terms to EGP 20.0 billion, largely due to a 32-day pre-planned production shutdown for maintenance, in addition to the decline in gross refining margins. Excluding ERC, Qalaa’s revenue rose by 48% y-o-y to EGP 5.1 billion in 2Q25, driven by solid top-line growth across all other subsidiaries.

On the profitability front, in 2Q25 Qalaa’s EBITDA shrank by 67% y-o-y to EGP 1.9 billion, largely as a result of the drop in EBITDA reported at ERC, which fell by 83% y-o-y to EGP 797.4 million, due to a pre-planned 32-day production shutdown for maintenance, which occurs once every four years, as well as the decline in refining margins during the quarter.

Excluding ERC, Qalaa’s 2Q25 EBITDA rose by 8% y-o-y to EGP 1.1 billion, driven primarily by strong growth at the Cement and Agrifoods platforms. In 2Q25, ASEC Holdings achieved an EBITDA expansion of 24% y-o-y to EGP 546.3 million, largely driven by the strong recovery at Al-Takamol Cement, an increase in production volumes and favorable FX movements at ASEC Engineering, and ASEC Automation’s expansion into regional markets and the renewable energy sector.

EBITDA at Dina Farms Holding Company grew by 23% y-o-y to EGP 319.9 million in 2Q25, driven by improved operations at Dina Farms, in addition to greater volumes, higher selling prices, and new product launches at ICDP. ASCOM’s EBITDA contracted slightly by 5% y-o-y to EGP 151.0 million in 2Q25, largely due to a decline in margins at GlassRock.

EBITDA at CCTO’s transportation and logistics business fell by 30% y-o-y to EGP 79.8 million in 2Q25, mainly as a consequence of lower volumes at NRPMC’s coal storage and stevedoring services. This was offset in the second half of the year through a reduction in variable costs and an increase in the utilization of the inland container depot. Finally, TAQA Arabia’s EBITDA expanded by 44% y-o-y to EGP 605.6 million in 2Q25, supported by broad-based growth across the board. TAQA Arabia is accounted for as an investment in associate using the equity method and revenues are not included in Qalaa’s consolidated revenues.

Qalaa reported a consolidated net loss after minority interest of EGP 1.2 billion in 2Q25, compared to a net loss of EGP 1.4 billion reported in 2Q24. The Group’s bottom-line performance came largely on the back of the net loss reported at ERC, as well as the continued accrual of interest expense relating to the Settlement and Restructuring agreements signed in 2024, which amounted to EGP 497.9 million in 2Q25. Interest continues to accrue on Qalaa’s Income Statement pending the full satisfaction of all conditions stipulated in the settlement agreement by 2030. However, these amounts will be completely written off once the terms of the settlement agreement are fully met.

Notwithstanding the above, both ASEC Holdings and Dina Farms Holding Company recorded net profits during the quarter.

In 2Q25, ERC reported a net loss of EGP 3.8 billion, compared to a net profit of EGP 558.0 million in 2Q24, largely as a result of the maintenance shutdown, as well as the decline in global refining margins during the quarter. ASEC Holdings achieved a net profit of EGP 284.4 million in 2Q25, as opposed to a net loss of EGP 135.6 million recorded in 2Q24, largely supported by the strong recovery at Al-Takamol Cement.

At Dina Farms Holding Company, net profit stood at EGP 77.8 million in 2Q25, a 30% y-o-y drop due to an increase in depreciation, as well as a rise in deferred tax liabilities. ASCOM reported a net loss of EGP 55.7 million in 2Q25, an improvement on the net loss of EGP 73.0 million recorded in 2Q24, following net income expansion at ACCM. However, declining margins at GlassRock weighed on ASCOM’s consolidated bottom-line performance.

In 2Q25, CCTO’s transportation and logistics business recorded a net loss of EGP 21.5 million, compared to a net income of EGP 35.6 million in 2Q24, as the company’s bottom-line performance was impacted by the decline in volumes at the storage and stevedoring services. Worth noting that this was offset later in the year through a decline in variable costs and an increase in the utilization of the inland container depot. Finally, TAQA Arabia’s net profit witnessed a twofold year-on-year increase to EGP 213.9 million in 2Q25, fueled by strong bottom-line growth across all subsidiaries apart from TAQA Power during the quarter.

“I am pleased with Qalaa’s resilient performance over the past quarter, showcasing our strength and agility in a dynamic macroeconomic landscape,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. Our top-line performance was greatly impacted by the drop in ERC’s USD-denominated revenue due to a pre-planned 32-day production shutdown for maintenance, in addition to a decline in global refining margins. Meanwhile, all other subsidiaries delivered solid revenue growth during the quarter. On that front excluding ERC, the Group’s revenue expanded by 48% y-o-y. It is also worth noting that while the Livestock and Herb Production segments at Dina Farms recorded weaker results during the quarter, both are expected to pick up significantly over the coming period.”

“As we head further into the year, we remain focused on executing our growth strategies across our various platforms, while simultaneously keeping a close eye on any emerging value accretive investment opportunities that will strengthen our overall investments portfolio. I remain confident in Qalaa’s ability to navigate and capitalize on a dynamic operating environment by leveraging the resilience and agility engrained in our DNA,” Heikal added.

“In parallel, Qalaa Holdings has successfully completed the transfer of the capital-increase shares from QHRI to the shareholders who participated in the company’s debt-purchase transaction in November 2025. This marks the full conclusion of all procedures related to the transaction, while generating outstanding investment returns for participants. I am pleased with the significant progress being made on the debt settlement front, as we continue to work towards strengthening and enhancing the Group’s overall financial position,” Heikal said.

“Finally, I would like to reiterate that the true value of Qalaa’s performing assets is masked due to holding them at their historical cost and, in some cases, adjusting for impairments, while not taking into consideration any revaluation adjustments,” Heikal concluded.

“ERC continued to play a significant role in driving Qalaa’s consolidated performance in 2Q25,” said Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director. “Consolidated revenue dropped by 34% y-o-y during the quarter as a result of the contraction in ERC’s USD-denominated revenue, due to the 32-day pre-planned maintenance shutdown at ERC. Additionally, a decline in global refining margins witnessed during the quarter further weighed on ERC’s top-line performance. Counterbalancing this, our diverse portfolio demonstrated its resilience, with the rest of our subsidiaries delivering solid top-line growth during the quarter. At our mining business, the Group’s position as an import substitute and export player allows us to generate valuable USD proceeds, supporting Qalaa’s consolidated results. In parallel, our agriculture segment continued to deliver strong top-line growth on the back of their robust investment fundamentals. Finally, Al-Takamol Cement continued its strong recovery, further augmenting our cement segment’s top-line performance.”

“On the debt settlement front, ERC remains on track to fully settle its senior debt ahead of schedule. In December 2025, ERC made a payment of USD 417 million to senior lenders, resulting in aggregate debt repayments of USD 574.4 million over the course of 2025. Following this repayment, ERC has reduced its senior debt principal balance from an initial USD 2.35 billion to just USD 63 million as of December 2025, which is scheduled to be repaid in March 2026,” added El-Khazindar.

“With the first half of the year now behind us, I am positive that Qalaa remains well positioned to deliver consistent and sustainable results over the coming period. With that, I look forward to additional quarters of continued growth, gains, and strong results across our diverse markets and operations,” concluded El-Khazindar.

Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at qalaaholdings.com/newsroom

Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Qalaa Holdings builds responsible and sustainable businesses that add value to the economies and societies in which it does business. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, Mining and Printing & Packaging. To learn more, please visit qalaaholdings.com.