Serbia’s three cement producers remained strongly profitable in 2025, although each recorded a decline in net earnings as weaker construction activity, higher labour costs and different approaches to energy transition began to influence the industry’s competitive landscape. Holcim Serbia, Moravacem and Titan Cementara Kosjerić all reported lower profits than in 2024. The reduction was limited for Holcim but significantly larger for Titan, as competition increasingly depends on production efficiency, fuel flexibility, carbon intensity and the capacity to fund decarbonisation projects.
- Holcim maintains revenue leadership
- Moravacem protects margins despite lower sales
- Titan records the sharpest profit decline
- Alternative fuels emerge as a competitive factor
- Construction demand continues to support producers
- CBAM adds a direct carbon cost dimension
- Investment in lower-carbon production gains commercial importance
- Industry competition is shifting beyond production volumes
The industry operated against an uneven construction backdrop. Construction works completed in Serbia during 2025 were valued at approximately RSD 785 billion (€6.7 billion), around RSD 10 billion below the previous year. Activity was subdued for much of the year before accelerating in the final quarter. The volatility continued into 2026, with construction activity falling by about 10% in the first quarter before recovering by a similar rate in the second quarter, primarily due to building construction.
Holcim maintains revenue leadership
Holcim Serbia, which operates the Beočin cement plant, recorded RSD 22.33 billion (€190 million) in total revenue in 2025, broadly unchanged from the previous year. Net profit slipped by around 1% to RSD 5.40 billion (€46 million), while EBITDA reached nearly RSD 6.98 billion (€59 million).
Holcim remained Serbia’s largest cement producer by revenue, generating almost 80% more revenue than Moravacem despite employing a comparable number of people. Its workforce increased to 277 employees, from 262 a year earlier, while average monthly gross remuneration reached approximately RSD 456,000. The company’s financial structure changed more substantially than its revenue performance. Long-term liabilities rose from about RSD 800 million to more than RSD 5 billion, reflecting a new investment cycle focused on lower-carbon production. Holcim has launched an investment programme exceeding €110 million for a new green cement production facility near Obrenovac. The project places decarbonisation at the centre of the company’s Serbian investment strategy and increases capital intensity as the industry faces growing pressure to reduce emissions.
Moravacem protects margins despite lower sales
Moravacem, owned by CRH Serbia Holdings UK, experienced the largest revenue decline among the three producers. Revenue fell by around 10% to RSD 13.60 billion (€116 million) in 2025. Cost reductions helped limit the impact on profitability, with net profit declining by approximately 7% to RSD 3.75 billion (€32 million).
EBITDA stood at almost RSD 4.92 billion (€42 million), keeping the company firmly profitable despite weaker sales. Trade receivables increased by around 13%, while Moravacem reduced both short-term and long-term indebtedness, strengthening its financial position despite the decline in revenue.
Titan records the sharpest profit decline
Titan Cementara Kosjerić posted the most significant deterioration in earnings. Revenue decreased by about 5% to RSD 8.96 billion (€76 million), while operating expenses increased. Net profit fell approximately 16%, from nearly RSD 2.97 billion in 2024 to RSD 2.49 billion (€21 million) in 2025.
EBITDA declined to approximately RSD 3.21 billion (€27 million). Titan’s trade receivables rose almost 80% to around RSD 242 million, although the company maintained a solid liquidity position. Employment increased from 188 to 200 people, while average monthly gross remuneration reached approximately RSD 352,000. The three companies remain profitable, but their financial results show increasingly different cost and investment profiles.
Alternative fuels emerge as a competitive factor
Access to alternative fuels is becoming one of the key differences between Serbia’s cement producers. Holcim and Moravacem have used alternative fuels for years, reducing reliance on conventional fossil fuels and lowering the carbon intensity of their operations. Titan’s Kosjerić plant, meanwhile, has been seeking regulatory approval for comparable use for almost 15 years, according to company management.
The issue affects both operating costs and emissions. Cement production generates substantial carbon emissions through kiln energy consumption as well as the chemical conversion of limestone into clinker. Producers can reduce this exposure through greater alternative-fuel substitution, improved thermal efficiency, lower clinker content and the use of lower-carbon materials. For Titan, continued restrictions on expanding alternative-fuel use could become a structural cost disadvantage rather than solely a regulatory issue.
Construction demand continues to support producers
Strong domestic and regional consumption is currently helping to cushion differences in production costs. Miroslav Gligorijević, general manager of Titan Cementara Kosjerić, has said that high consumption linked to the continuing construction cycle allows the plant to compete with larger rivals. Weaker domestic demand could make production-cost differences more significant, particularly between producers with different levels of fuel flexibility and energy efficiency.
The broader Serbian construction pipeline remains an important source of demand. Residential construction, infrastructure, energy facilities, logistics developments and preparations for major public projects are expected to continue generating demand for cement and concrete.
CBAM adds a direct carbon cost dimension
The European Union’s Carbon Border Adjustment Mechanism (CBAM) is adding another competitive consideration for Serbian cement producers. Cement is among the six original CBAM sectors, with the definitive regime in force since 1 January 2026. EU importers are increasingly required to account for embedded emissions in imported cement and will ultimately surrender CBAM certificates linked to EU carbon prices.
The European Commission issued dedicated guidance for the definitive period in August 2026, further establishing the framework for emissions calculation and verification. The economic value of carbon is already visible in certificate prices. The official CBAM reference price was €75.36 per tonne of CO₂ in the first quarter of 2026 and €75.28/t in the second quarter. Although certificate obligations are being phased in alongside the reduction of free EU ETS allowances, the mechanism increasingly gives a measurable financial value to differences in the carbon intensity of cement.
Investment in lower-carbon production gains commercial importance
The changing regulatory environment is altering the economics of decarbonisation for Serbian producers. Spending on alternative fuels, clinker substitution, energy efficiency, renewable electricity and lower-carbon cement can increasingly support export competitiveness in addition to reducing environmental impact. Producers able to demonstrate lower verified embedded emissions should be better positioned when supplying EU customers whose import costs are increasingly influenced by CBAM requirements.
Holcim’s investment of more than €110 million in green cement production therefore represents both a major capital commitment and a response to changing competitive conditions. The project increases debt and capital expenditure in the near term while potentially expanding the company’s lower-carbon product offering. Moravacem’s established alternative-fuel operations provide another competitive advantage, while Titan faces greater pressure to resolve the regulatory restrictions affecting its Kosjerić plant.
Industry competition is shifting beyond production volumes
The 2025 financial results show that Serbia’s cement market continues to generate strong returns despite weaker earnings. Holcim retains the largest revenue base and is undertaking the sector’s most substantial green investment programme. Moravacem combines lower revenue scale with strong profitability, reduced indebtedness and established alternative-fuel use. Titan Cementara Kosjerić remains profitable and liquid but faces a more pronounced cost challenge if restrictions on alternative fuels persist. As construction demand fluctuates and carbon regulation becomes increasingly relevant to cross-border trade, the competitive focus is shifting toward production costs, fuel flexibility, investment capacity and verified CO₂ emissions per tonne of cement.
