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SGTM Boosts H1 Profit 7.3% on Margin Expansion Despite Revenue Dip
<p>Moroccan construction giant SGTM reported a 7.3% increase in consolidated net profit to MAD 793 million for the first half of 2026, defying a 7.2% drop in revenue to MAD 6.6 billion. The profit surge was fueled by a significant improvement in operational efficiency, with the EBITDA margin expanding 3.8 percentage points to 21.4%. The revenue decline reflects a transitional phase between the delivery of major 2025 projects and the ramp-up of new mega-projects, including the Casablanca Airport Terminal Hub and the Bou Ahmed Dam. The order book remains robust at MAD 34.8 billion, ensuring over two years of revenue visibility.</p>
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Profitability Shines Amid Project Transition
Société Générale des Travaux du Maroc (SGTM) delivered a mixed but fundamentally strong set of half-year results for 2026. While the top line contracted, the bottom line expanded impressively, underscoring the group's pricing power and operational discipline.
Revenue Dips on Project Phasing
Consolidated revenue fell 7.2% year-on-year to MAD 6.6 billion. Management attributes this decline to a natural "transition period." The first half of 2025 benefited from the peak execution and delivery of landmark projects, notably the Mohammed VI Polytechnic University and Rabat sports infrastructure. In contrast, H1 2026 is characterized by the early mobilization phases—studies, installation, and setup—of new major contracts.
- Key New Projects: Casablanca Mohammed V Airport Terminal Hub, Bou Ahmed Dam.
- Sustained Segments: Maritime and port works (Dakhla Atlantique, Nador West Med, Tanger Med Passenger Port) maintained strong activity levels.
Margins Expand Significantly
Despite lower volumes, profitability metrics surged:
- EBITDA: +13% to MAD 1.416 billion.
- EBITDA Margin: 21.4% vs 17.6% in H1 2025 (+3.8 pts).
- Operating Income: +13.8% to MAD 1.129 billion.
- Consolidated Net Income: +7.3% to MAD 793 million.
The group credits its integrated business model and tight value-chain control for the margin expansion.
Backlog Provides Long-Term Visibility
As of June 30, 2026, the consolidated order book stood at MAD 34.8 billion, marginally down 0.9% from year-end 2025. Crucially, this represents over two years of revenue. With newly awarded mega-projects still in early execution phases, SGTM anticipates a progressive production ramp-up over the coming quarters, supported by ongoing port infrastructure advancements.