SCG Reveals First Half 2026 Results: Adjusted Cash EBITDA Grows 35%
Mr. Thammasak Sethaudom, President and CEO of SCG, revealed that SCG continues to strengthen its agility and competitiveness in a volatile world, resulting in a 35% increase in Adjusted Cash EBITDA (cash flow excluding inventory adjustments, impairment, and non-recurring items) in the first half of 2026 compared to the same period last year, reaching 42,913 million baht. This success stems from the implementation of proactive strategies in both the ‘short-term’ and ‘medium-term’ phases, leading to improved performance across all businesses. Cement, construction materials, and decorative materials businesses demonstrated efficient cost management and effectively met ASEAN customer needs, while also seeking new business partners for growth opportunities. The packaging business saw improved performance, particularly in Indonesia, which turned a profit due to business integration through the acquisition of a paper packaging business, improved operational efficiency, and effective cost management, along with increased domestic packaging sales and expanding demand in ASEAN, especially in Vietnam, which experienced strong growth. The chemicals business also focused on cost management. SCG's revenue from sourcing outside the Strait of Hormuz, its ability to sell high-value added (HVA) products to adapt promptly to volatile situations in the Middle East, and improved global petrochemical price spreads have all contributed to its strong dividend income.
Furthermore, SCG continues to receive robust dividend income. Next year, several aspects of its business transformation will be completed, including the ethane gas supply project at LSP Vietnam and the clearer details of new business partnerships. This is expected to ensure SCG's sustainable growth. For the first half of 2026, SCG reported sales revenue of 259,570 million baht and net profit of 17,758 million baht. Excluding extraordinary items, mostly inventory adjustments, net profit was 12,649 million baht. For the second quarter of 2026, SCG had Adjusted Cash EBITDA of 27,984 million baht, sales revenue of 136,243 million baht, and net profit of 11,535 million baht. (Excluding extraordinary items...) Profit for the period is projected at 10,833 million baht. Net debt decreased by 39,176 million baht from the previous quarter. The net debt-to-EBITDA ratio decreased to 3.7 times from 5.0 times in the previous quarter. Cash on hand at the end of Q2 2026 increased to 76,775 million baht. Key performance indicators for the first half of 2026 by business segment are as follows:
1.) Cement-related, building materials, and decorative products businesses were driven by Thai government projects, as well as growth in the Vietnamese and Indonesian markets, while the domestic private market remained sluggish. SCG Cement-Building Materials reported a profit of 5,790 million baht for the period, with Adjusted Cash EBITDA of 11,407 million baht. This was mainly due to business restructuring and efficient cost management. Key performance indicators for the first half of 2026 include the integration of SCG Cement & Green Solutions, SCG Smart Living, and SCG Distribution & Retail under the name “SCG Cement-Building Materials,” focusing on a customer-centric approach. To increase sales opportunities and enhance efficiency throughout the business chain, resulting in the expansion from ready-mixed concrete customers to other products and services (Non-RMC Products), with a 15% increase in cross-selling compared to the previous year. The retail network has also been expanded by more than 200 stores, while reducing redundant work and increasing the efficiency of resource sharing. It is expected to reduce costs and expenses by more than 1 billion baht this year. The company is accelerating the expansion of high-quality, cost-effective products (Smart Value Products: SVP), such as Q-MAXX cement, through area-specific marketing strategies via distributors and partner construction material stores.
Expanding HVA products such as "SCG DECAAR surface finishing materials" for interior and exterior walls, ceilings, and floors, with diverse designs and material options such as fiber cement, aluminum, WPC, and vinyl.
Continuing to promote "SCG Low Carbon Cement," which has already gained more than 80% market access in Thailand, the company is accelerating production and exports to Vietnam to support the growing sustainability-focused market.
The company is also expanding into the high-potential Australian market by offering innovative products for residential and construction. The entire range of roofing, ceiling, and insulation products will be showcased at the “Sydney Build Expo 2026,” featuring quality products with international standards and a focus on sustainability.
SCG Decor achieved Adjusted Cash EBITDA of 1,378 million baht, driven by growth in international revenue, particularly in Vietnam, and efficient financial management, energy costs, and inventory management, despite the company incurring business restructuring and asset amortization expenses in Thailand.
Key performance indicators in the first half of 2026 include: Progress on the project to increase glazed porcelain tile production capacity at PRIME Vietnam to meet growing domestic demand and export needs. Upon completion in 2027, the project will account for 40% of the company's total production capacity.
Proceeding with the consolidation of high-value-added ceramic and glazed porcelain tile production lines and the installation of a new glazed porcelain tile production line with automation in Thailand, to be completed in Q3 2027, aiming to reduce unit production costs by up to 20%.
Partnership with a top Chinese sanitary ware component manufacturer. 1.) Expanding into the smart toilet market by building a factory in Thailand with a production capacity of 96,000 units per year.
2.) Chemicals business: The situation in the Middle East has affected the supply of raw materials and the supply chain. Many petrochemical plants have stopped or reduced production capacity, resulting in a decrease in global supply. This has led to higher prices for polyethylene (PE) and polypropylene (PP). SCG's profits...
For the period, Adjusted Cash EBITDA was 5,898 million baht, or 15,600 million baht, primarily due to increased petrochemical price spreads and the company's management efforts to accelerate raw material procurement from sources outside the Strait of Hormuz, operational optimization of plants, increased sales volume of HVA products, and inventory valuation adjustments.
Key performance indicators in the first half of 2026 include the successful sale of a 14.86% stake in PT Chandra Asri Pacific Tbk. (CAP) in Indonesia, valued at approximately 24,900 million baht, in line with the strategy to reduce financial burden and allocate funds to invest in the ethane gas raw material sourcing project at the LSP Vietnam plant.
Preparations are being accelerated for the ethane gas raw material sourcing project at the LSP Vietnam plant, which is currently temporarily shut down. The construction of the ethane storage tanks is now over 60% complete, with operations expected to commence by the end of 2027 as planned.
The strategic joint venture in the olefins and polyolefins business in Thailand between GC and SCGC is still undergoing ongoing feasibility studies. And will report progress in Q3 2026.
3.) Packaging Business: Demand for packaging recovered in Q2 2026, while raw material costs, energy prices, and transportation costs increased due to conflicts in the Middle East. SCGP therefore focused on improving operational efficiency to manage costs, maintain business continuity for customers, and enhance competitiveness through regional production networks and comprehensive consumer packaging solutions.
SCGP reported a net profit of 3,870 million baht, with Adjusted Cash EBITDA of 10,472 million baht. The main reason was the turnaround to profitability in the Indonesian business, driven by increased domestic packaging sales volume and price adjustments in line with regional markets. Cost management, energy restructuring, and production efficiency improvements resulted in cost management as planned. Meanwhile, the Vietnamese business continued to be supported by economic expansion and sustained domestic consumption.
Key performance in the first half of 2026 includes expanding the paper packaging business in ASEAN, capitalizing on continuously growing demand by increasing corrugated paper packaging production capacity in southern Vietnam, creating business growth while driving sustainability. By creating shared value with customers through the development of innovative products, services, and solutions that meet business needs and ESG goals, such as collaborating with Kao Industrial (Thailand) (KAO) to develop packaging using innovative mono-material technology. This technology is designed to make multi-layer flexible packaging from a single material, which is environmentally friendly and promotes recycling.
Using artificial intelligence (AI), machine learning, and deep learning technologies to enhance production efficiency, cost management, quality control, and data analysis, as well as deploying collaborative robots (cobots) to improve the efficiency of repetitive tasks requiring continuity.
Mr. Thamsak concluded by saying, “Even though the global economic situation in the second half of 2026 remains highly challenging due to the uncertainty of geopolitical conflicts, especially in the Middle East which has the potential to escalate, fierce price competition, inflation, and volatile energy costs, SCG is confident that it can cope strongly with the strategies already in place and ready to move forward. We believe that the Adjusted Cash EBITDA for this year will be better than in 2025, allowing us to take care of all shareholders.” as well as continuously engaging all stakeholder groups.
For next year, SCG will continue to accelerate its business transformation with medium-term strategies such as pushing forward the project to increase ethane gas raw materials at the LSP plant in Vietnam, collaborating with new business partners, managing ASEAN production bases, restructuring management, and implementing robots and AI to increase operational efficiency. These will be completed by the end of 2027, ensuring SCG's sustainable growth.” Furthermore, the company's board of directors approved the payment of an interim dividend from the first half of 2026 operating results at a rate of 3.5 baht per share, totaling 4,200 million baht, or 24% of the profit for the first half of 2026, to continue caring for all shareholders. The interim dividend payment date is set for August 21, 2026, the ex-dividend date (XD) is August 5, 2026, and the record date is August 6, 2026.
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