TGCC Reports 4.5% Net Profit Growth Despite Revenue Dip, Order Book Surges 48.5%

Moroccan construction and infrastructure leader TGCC has demonstrated remarkable financial resilience in the first half of 2026, achieving a 4.5% increase in consolidated net profit to MAD 435 million, even as operational revenues experienced a modest contraction.

Revenue Pressures Offset by Margin Expansion

The company reported consolidated operating revenues of MAD 5.477 billion for H1 2026, representing a 2.3% year-over-year decline from the MAD 5.605 billion recorded in the same period of 2025. Management attributed this temporary softness to multiple transitional factors impacting the business cycle.

Unfavorable weather conditions during Q1 disrupted construction timelines, while the completion of several major infrastructure projects in late 2025 created a temporary gap before newly awarded contracts reached full operational momentum. Additionally, TGCC's African operations experienced some deceleration during the period.

However, these headwinds were partially mitigated by the strong performance of STAM VIAS, which increased its contribution to group revenues from 26% to 32%, demonstrating the value of TGCC's diversified business portfolio.

Profitability Metrics Show Strength

Despite the revenue headwinds, TGCC's profitability indicators revealed underlying operational strength. EBITDA remained virtually flat at MAD 1.178 billion (down just 0.5%), while the EBITDA margin improved by 0.4 percentage points to reach 21.5%.

Operating profit demonstrated even more impressive growth, climbing 4.5% to MAD 1.023 billion. The operating margin expanded significantly from 17.6% to 18.7%, reflecting enhanced cost management and operational efficiency.

This margin expansion translated directly to the bottom line, with net profit attributable to the group reaching MAD 435 million compared to MAD 416 million in H1 2025. The net margin gained 0.5 percentage points to settle at 7.9%.

Order Book Surges on Major Infrastructure Wins

The standout metric of the half-year results was TGCC's order book, which surged 48.5% year-over-year to reach MAD 28.4 billion at end-June, up from MAD 19.1 billion twelve months earlier—an increase of MAD 9.3 billion.

This substantial backlog includes high-profile projects such as the expansion and modernization of Casablanca's Mohammed V International Airport and construction of the Grand Stadium of Benslimane, both flagship infrastructure initiatives aligned with Morocco's development ambitions.

The commercial momentum extended beyond the semester close. In July, TGCC secured contracts from Morocco's national railway operator ONCF for the Marrakech-Guéliz station and Marrakech technicentre, both integral components of the high-speed rail line connecting Kenitra to Marrakech. The group was also awarded the reconstruction contract for Casablanca's Tessema Stadium.

Working Capital Drives Debt Increase

Net debt stood at MAD 2.1 billion as of June 30, 2026, up considerably from MAD 554 million at year-end 2025. TGCC attributed this increase primarily to elevated working capital requirements associated with the large number of projects in early-stage execution phases, alongside isolated payment timing delays on certain contracts.

Outlook: Positioned for Accelerated Growth

Management expressed confidence in the outlook for the remainder of 2026 and into 2027, citing the substantial order book and the expected ramp-up of recently launched construction sites. As major projects transition from mobilization to full execution phases, revenue growth should accelerate while the expanded margin structure delivers enhanced profit generation.

The combination of Morocco's ambitious infrastructure investment program and TGCC's proven execution capabilities positions the company as a primary beneficiary of the kingdom's development trajectory.