STIP has posted a net profit of TND 4.7 million for 2025 after a year of deep losses, but the recovery is overshadowed by a sharp revenue drop, negative cash flow, and mounting liabilities that threaten the company's stability.
STIP turned a profit in 2025, but the numbers tell a more complicated story for Tunisia's industrial sector. The company reported a net profit of TND 4.7 million, reversing a TND 7.9 million loss from 2024. Still, the details show a business under strain. The agenda for STIP's annual general meetings, set for 15 and 18 September 2026, confirms that shareholders will review and vote on the 2025 financial statements and auditor's report, as required by the Tunisian Financial Market Council and reported by Zonebourse and TAP.
This profit did not come from stronger sales. Instead, it was driven by deep cost cuts and a one-time gain from inventory revaluation. Operating profit jumped to TND 11.6 million from TND 2.5 million the year before, thanks to lower expenses and a temporary boost from finished-goods inventories. Gross margin rose to 34.5% of output, and production increased 15% to over 10,000 tons. But revenue fell 10% to TND 125.8 million, with export sales down 20% and domestic sales down 8%. The September meetings will also include the auditors' consolidated report, approval of accounts, and allocation of results, reflecting the close regulatory oversight of the sector as detailed by Zonebourse.
Revenue collapse and cash flow reversal
STIP's revenue is shrinking. Management partly blamed tighter inventory management, but both export and domestic demand have weakened. The company's auditors highlighted several concerns, and the financial structure remains fragile. Current liabilities rose to TND 139.3 million, including TND 82 million in bank debt. Most notably, operating cash flow swung from a positive TND 28 million in 2024 to a negative TND 12 million in 2025, leaving net cash at TND -10.3 million. This puts the company on shaky ground. According to recent reports from Reuters and regional economic bulletins, Tunisia's state-owned and strategic industrial firms are facing rising debt and liquidity problems, a trend watched by the Ministry of Industry and Energy, the Tunisian Central Bank, and the African Union's economic working groups.
For investors and analysts, STIP's results reflect wider problems in Tunisia's investment climate. As reported earlier, Tunisia has dropped to the bottom of global investment freedom rankings, with administrative hurdles and fiscal pressure driving capital outflows and weakening corporate resilience. The Tunisian National Institute of Statistics (INS) has also pointed to ongoing challenges in manufacturing and exports, echoing the Maghreb region's broader struggle to attract foreign investment, as noted by the UN Economic Commission for Africa.
First ESG disclosure and strategic risks
In 2025, STIP published its first ESG report, outlining a decarbonization plan centered on a trigeneration project meant to supply 73% of its electricity needs. The report includes new data on energy use and greenhouse gas emissions, in line with Financial Market Council rules. While this adds transparency, it does not address the company's immediate financial risks. The Tunisian Ministry of Environment and the Financial Market Council have both stressed the need for ESG compliance among listed companies, a view shared by Morocco's Ministry of Energy Transition and Sustainable Development and Algeria's Ministry of Industry in recent bilateral meetings.
STIP's turnaround is real, but the foundation is weak. The company managed a profit despite falling sales and negative cash flow, showing management's ability to cut costs, but the business is still exposed to shrinking demand and heavy debt. Unless STIP can grow revenue and stabilize its cash position, this profit may not last. Tunisia's industrial sector, already under regulatory and fiscal pressure, gets little reassurance from a recovery built on such uncertain ground.
