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.
