Elsewedy Electric, led by Egyptian billionaire family, opens 2026 with $92 million profit

Elsewedy Electric, the Cairo-based multinational cable and electrical equipment manufacturer led by the Egyptian billionaire El-Sewedy family, registered a solid start in 2026, delivering double-digit profit supported by strong growth across its cables, engineering and digital businesses.

The Cairo-based company’s profit climbed by 16.86% from EGP4.15 billion ($78.3 million) to EGP4.85 billion ($91.49 million), driven by broad-based growth across all business segments, reflecting the company’s successful execution of its diversified strategy. The Wires, Cables & Accessories division remained the top revenue contributor, followed by the Engineering & Construction (E&C) Projects segment.

Revenue and earnings rise despite margin pressure

According to its recent release, the company recorded revenue of EGP75.3 billion ($1.42 billion) for the first three months ended March 31, 2026, a 26.78% increase from EGP59.39 billion ($1.12 billion) in the same period last year as demand for energy infrastructure, engineering projects and digital solutions accelerated across the Middle East and Africa. 

Elsewedy Electric’s digital solutions division, which includes smart meters and technology operations, recorded the fastest growth among major units. Revenue from the segment jumped 64.8% to EGP6 billion ($113.36 million), with meters backlog reaching EGP9.5 billion ($179.5 million) at the end of March. Meter sales volumes increased nearly 50% year-on-year to 1.75 million units, reflecting stronger regional demand for smart-grid and utility modernization technologies tied to broader energy infrastructure upgrades.

Chief Executive Ahmed El Sewedy said the company maintained strong operational performance despite geopolitical tensions across the region, citing its diversified geographic exposure and broad product portfolio as key drivers of resilience.

Revenue growth driven by cables and construction projects 

Elsewedy Electric’s Wires, Cables & Accessories segment remained the company’s largest business line, contributing 60% of total revenue during the quarter. Revenue from the division increased 25.8% year-on-year to EGP45.4 billion ($857.54 million), supported by higher cable volumes, export growth and favorable currency movements.

Engineering and Construction projects, the company’s second-largest segment, generated EGP18.3 billion ($345.66 million) in revenue, up 18.7% from a year earlier. Backlog reached EGP307 billion ($5.6 billion) as of March 31, with nearly half of the projects concentrated in Gulf Cooperation Council markets. New engineering awards and variation orders totaled EGP36 billion ($679.85 million) in the quarter, reinforcing revenue visibility for the coming periods.

Margins pressured despite earnings growth

Elsewedy Electric’s SG&A expenses rose 25% to EGP4 billion ($75.57 million) due to inflation, currency volatility and strategic hiring initiatives across the group. EBITDA climbed 25.4% to EGP9.3 billion ($175.66 million), while EBITDA margin remained broadly stable at 12.4%. Net bank debt increased to EGP24 billion (4453.33 million) at the end of March from EGP19.8 billion ($373.99 million) at year-end 2025 as the company expanded inventory levels to hedge against inflation and supply-chain disruptions.

Significant growth during the first-half of 2025

Founded in 1938, Elsewedy Electric has evolved into a leading provider of energy, digital, and infrastructure solutions across the Middle East and North Africa. Under the billionaire El-Sewedy family, controlling 78.18% of the company, which has expanded globally.

The company operates 31 production facilities across 15 countries and employs more than 20,000 workers, positioning it among the largest integrated infrastructure and electrical equipment groups in the Middle East and Africa. 

Elsewedy Electric ended the quarter with substantial order visibility across multiple business segments. Its cables business reported a backlog of EGP52.6 billion, while transformer backlog reached EGP32.6 billion. For Egypt, Elsewedy Electric remains one of the country’s largest industrial exporters and infrastructure contractors, giving it a strategic role in regional manufacturing and cross-border energy projects.