TGCC Reports Mixed H1 2026: Revenue Dips 5.3% While Order Backlog Surges to 28.4 Billion Dirhams

Moroccan construction leader TGCC delivered contrasting results for the first half of 2026, with operational challenges weighing on near-term revenue while a robust project pipeline positions the company for accelerated growth ahead.

Revenue Pressures in H1 2026

Consolidated operating revenue reached 5.24 billion dirhams during the six-month period, down 5.3% compared to 5.53 billion dirhams in the first half of 2025. The decline reflects multiple headwinds that temporarily constrained project execution.

TGCC attributed the revenue softness primarily to unfavorable weather patterns that disrupted on-site work across both TGCC and STAM VIAS construction sites. Additionally, several strategic infrastructure projects remained in preliminary phases, with major structural work not yet hitting optimal production rates during the period under review.

The company cautioned that this operational configuration will likely impact first-half profitability metrics accordingly.

Q2 Recovery Signals Momentum Shift

Despite the challenging first quarter, activity showed improvement in the second quarter. Q2 operating revenue climbed to 3.16 billion dirhams, posting a 1.2% gain versus the same quarter in 2025, suggesting the operational bottlenecks are beginning to ease.

Capital Investment and Working Capital Dynamics

TGCC maintained its capital expenditure program throughout the period, with total CAPEX reaching 246.3 million dirhams for the semester, down 12.4% year-over-year. However, investment accelerated sharply in Q2, hitting 162.6 million dirhams—a 51.4% increase quarter-on-quarter. The company linked this uptick to strategic reinforcement of industrial and technical capabilities needed to support the ramp-up of major construction sites.

The scaling of multiple projects simultaneously has placed pressure on working capital requirements. Net debt climbed significantly to 2.08 billion dirhams at the end of June, compared to 609.8 million dirhams at year-end 2025. TGCC explained this increase as a direct function of elevated working capital needs tied to the large number of projects in launch phase.

Record Order Backlog Drives Future Visibility

The standout metric for the period remains the order backlog, which surged to 28.4 billion dirhams at end-June 2026, up from 19.1 billion dirhams at the same point in 2025—a year-over-year increase of nearly 49%.

This substantial pipeline includes several landmark infrastructure projects that underscore TGCC's positioning in Morocco's ambitious development agenda:

• The new passenger terminal at Casablanca's Mohammed V International Airport
• The Grand Stadium of Benslimane
• The Casablanca-Marrakech high-speed railway line
• Upgrades to the Grand Stadium of Marrakech

Management expressed confidence that the combination of recently commenced projects and the scale of the order book provides a solid foundation for favorable performance in the coming quarters as these contracts transition from startup to full execution mode.

Strategic Positioning and Recent Developments

TGCC has been active in strengthening its market position through strategic moves. Recent highlights include securing the reconstruction contract for Tessema Stadium worth 1.8 billion dirhams, forming a partnership with OFPPT to enhance construction sector skills, competing for upgrade work on the Grand Stadium of Agadir, and reinforcing vertical integration through the acquisition of a 51% stake in SAFETTRAS.

With a record backlog and operational momentum building, TGCC appears poised to convert its strong project pipeline into accelerated revenue growth as major infrastructure initiatives reach peak construction activity.