Qalaa Holdings Reports Strong 3Q25 Rebound with Revenues Reaching EGP 38.3 Billion and Robust Operational Growth
Qalaa Holdings (EGX: CCAP.CA), a leading energy and infrastructure investment company, announced today its consolidated financial results for the three- and nine-month periods ending 30 September 2025, posting a strong rebound in revenues and operational performance during the third quarter.
Qalaa’s consolidated revenue rose sharply to EGP 38.3 billion in 3Q25, recovering from the decline recorded in 2Q25 due to the 32-day planned maintenance shutdown at the Egyptian Refining Company (ERC). The Group’s recurring EBITDA grew by 44% year-on-year to EGP 6.9 billion, supported by strong operating profitability across all subsidiaries.
Excluding ERC, consolidated revenue increased by 29% year-on-year to EGP 4.5 billion, while EBITDA surged by 77% year-on-year to EGP 856.4 million, highlighting broad-based growth across the Group’s diversified portfolio.
Net income attributable to shareholders reached EGP 81.4 million in 3Q25. On a pro forma basis, net income would have reached EGP 583 million, were it not for an interest provision of EGP 501.1 million related to debt settlement and restructuring agreements signed with local banks in 2024. This provision is expected to be fully reversed upon completion of the agreement’s terms.
ERC Drives Performance as Margins Improve
ERC continued to operate above its rated capacity during the quarter, with refining margins improving in line with cyclical trends. The company generated EGP 33.8 billion in USD-denominated revenues and maintained a clean receivables position, with the Egyptian General Petroleum Corporation (EGPC) current on all payments.
Looking ahead, ERC’s EBITDA is expected to rise further in 4Q25 and 1Q26, driven by improved refining margins, which will positively impact Qalaa’s consolidated performance.
In December 2025, ERC made a significant repayment of USD 417 million to senior lenders, bringing total repayments for the year to USD 574.4 million. This reduced ERC’s senior debt principal from USD 2.35 billion to just USD 63 million by year-end 2025.
Portfolio Companies Deliver Strong Growth Across Sectors
Qalaa’s non-ERC portfolio companies recorded strong operational and financial performance across all segments:
The cement platform benefited from the continued recovery of Al-Takamol Cement and strong growth at ASEC Automation.
Dina Farms Holding reported solid top-line growth, supported by higher volumes, improved pricing, and new product launches at ICDP.
ASCOM delivered strong revenue growth, driven by its USD-generating businesses, including ACCM and GlassRock, alongside improved mining operations.
The transportation and logistics segment maintained stable revenues, supported by strong performance at the National River Port Management Company (NRPMC).
TAQA Arabia recorded solid growth in both revenues and profitability across its operations.
Exports and Foreign Currency Revenues Strengthen Financial Position
Qalaa continued to enhance its foreign currency generation, with export proceeds reaching approximately USD 27 million during the quarter. Additionally, local foreign currency revenues stood at approximately USD 720.9 million, reflecting the Group’s growing role as both an export player and import substitute.
Capital Increase and Debt Restructuring Milestones Achieved
In November 2025, Qalaa completed the transfer of capital increase shares to investors participating in its debt purchase transaction, marking the successful conclusion of the process. This followed the company’s capital increase in October 2025, which raised issued and paid-in capital from EGP 9.1 billion to EGP 21.1 billion.
As of 31 December 2025, Qalaa reduced its consolidated debt by approximately EGP 39 billion, supported by ERC’s repayments and the capitalization of USD 240.7 million in debt.
The Group also reported a return to positive shareholders’ equity, reaching EGP 3.4 billion after two years of negative equity, with expectations for further improvement by year-end 2025.
Strategic Outlook: IPO Pipeline and Growth Initiatives
Qalaa is advancing plans to launch five initial public offerings (IPOs) for selected high-growth subsidiaries over the next two years, aimed at unlocking shareholder value and enhancing financial flexibility. The National River Port Management Company is expected to be the first to list, with a targeted IPO in 2026.
The Group will continue to focus on incremental investments across its subsidiaries to drive cash flow growth and reduce leverage, while maintaining momentum across its diversified portfolio.
Management Commentary
Ahmed Heikal, Chairman and Founder of Qalaa Holdings, stated: “We are pleased with the Group’s performance this quarter, which reflects our resilience and ability to navigate a dynamic economic environment. Our results were driven by ERC’s recovery and strong contributions from the rest of the portfolio.”
He added: “We remain focused on executing our growth strategy, including advancing our IPO pipeline and strengthening our financial position through ongoing debt restructuring efforts.”
Hisham El-Khazindar, Co-Founder and Managing Director, commented: “Our diversified portfolio continues to demonstrate strong operational momentum, with all business segments delivering solid growth. We are confident in our ability to sustain this performance and generate long-term value.”
Outlook
Despite ongoing cash flow pressures in certain subsidiaries due to expansionary capital expenditures, Qalaa’s overall liquidity position has improved significantly. The company expects continued operational improvements and stronger financial performance across its core platforms in the coming periods.