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SGTM Reports 7.2% Revenue Decline in H1 2026 Despite Maintaining MAD 34.8 Billion Order Backlog
Moroccan construction giant SGTM posted consolidated revenues of MAD 6.6 billion in the first half of 2026, marking a 7.2% year-on-year decline. The company attributes this temporary slowdown to the natural project lifecycle, as major infrastructure deliveries from 2025 transition into the startup phase of new mega-projects. Despite the revenue dip, SGTM maintains a robust order book valued at MAD 34.8 billion, signaling strong future growth potential as new projects ramp up production.
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Morocco's leading construction group SGTM has reported consolidated revenues of MAD 6.601 billion for the first half of 2026, compared to MAD 7.117 billion during the same period in 2025, representing a year-on-year decline of 7.2%. The second quarter alone saw revenues reach MAD 3.578 billion, down 14.2% compared to Q2 2025.
Project Lifecycle Drives Temporary Slowdown
The company has attributed this revenue contraction to the natural execution cycle of its major construction projects. Following a robust 2025 characterized by intensive production and the delivery of several landmark projects—including the UM6P university infrastructure and major stadiums in Rabat—the first half of 2026 represents a transitional phase as new strategic projects enter their initial stages.
Among the key projects now in early development is the new Hub Terminal at Mohammed V International Airport in Casablanca. Currently in its preliminary study and installation phases, this project is generating limited production volumes. However, SGTM expects a gradual acceleration in construction activity as these sites progress through their development cycles in coming quarters.
Hydraulic Infrastructure Enters New Phase
A similar pattern is evident in SGTM's dam and hydraulic infrastructure segment. After successfully delivering the Sidi Abbou and Aït Ziat dams in 2025, the group is now launching a new series of water infrastructure projects, including the Bou Ahmed dam, which are still in their early execution phases.
Maritime Portfolio Shows Strong Growth
In contrast to other segments, SGTM's maritime and river works division posted significant growth during the semester. This performance was driven by progress on several major port infrastructure projects, including Dakhla Atlantique, Nador West Med, and the Tanger Med passenger port facility.
Investment Acceleration and Financial Position
SGTM has significantly ramped up its capital expenditure during the period, with investments reaching MAD 377 million in the first half, up 47.3% year-on-year. Second-quarter investment alone totaled MAD 247 million, compared to MAD 147 million in Q2 2025. These funds have been primarily deployed to mobilize equipment and resources necessary for launching and scaling up new construction sites.
This investment phase has resulted in a marked increase in net debt, which stood at MAD 2.4 billion at the end of June 2026, compared to just MAD 156 million at the end of December 2025. The company explains this evolution as the upfront mobilization of resources required for major projects, ahead of the production ramp-up and associated cash inflows.
Robust Order Book Signals Future Growth
Despite the temporary revenue decline, SGTM's order backlog remains substantial at MAD 34.8 billion as of June 30, 2026. The backlog composition shows 74.4% from public sector contracts, 21.9% from private sector clients, and 3.9% from semi-public entities, demonstrating the group's diversified client base and strong positioning for future growth.
As SGTM enters the second half of 2026, the company is positioned at the intersection of completed major 2025 deliveries and the accelerating ramp-up of new strategic infrastructure projects that will drive future performance.