Arabian Cement Company reported a net profit of 118.4 million SAR for the first nine months of 2026, marking an 8% increase compared to the 109.6 million SAR recorded during the same period in 2025. Despite this cumulative growth, the company experienced a significant downturn in the third quarter, with net profit falling 57% to 28 million SAR, down from 65.5 million SAR in the third quarter of 2025, according to financial results released for the period ending September 30, 2026. Over this nine-month span, the company saw its total revenue decline by 7.2% to 709 million SAR, down from 764.1 million SAR in the corresponding period of 2025, primarily due to lower sales volumes for the parent company.
Factors Driving Nine-Month Growth
The overall profit increase for the nine-month period was supported by several specific financial adjustments and strategic moves. The company attributed this performance to a reduction in depreciation expenses, which followed a change in the estimated economic useful life of the parent company’s machinery and plant installations. The firm also realized capital gains from the sale of its stake in the Ready-Mix Concrete and Construction Supplies company. These gains were further bolstered by the impact of exceptional tax differences recorded for the subsidiary during the same period in the previous year, which offset a decline in revenue caused by lower sales volumes for the parent company. By the end of the current period, shareholders’ equity, excluding minority interests, reached 2,557.8 million SAR, compared to 2,534.1 million SAR at the end of the same period last year. The company reported a decrease in non-controlling interest balances because it increased its stake in the Jordanian-based Qatrana Cement Company.
Third Quarter Performance Contraction
The sharp decline in the third quarter contrasted with the year-to-date results. Revenue for the quarter dropped by 21.6% to 229.8 million SAR, compared to 293.2 million SAR in the same quarter of 2025. The company cited lower average selling prices for the parent company and decreased sales volumes for its subsidiary as the primary drivers for the revenue shortfall. Furthermore, the firm noted that the drop in net profit was specifically influenced by these reduced selling prices and a decline in other revenues. Operating profit for the quarter saw a steep 77.6% decline, falling to 15.4 million SAR from 68.7 million SAR in the third quarter of 2025.
Quarter-over-Quarter Comparison
- Net profit for the third quarter of 2026 was 28 million SAR, a 7.9% decrease from the 30.4 million SAR reported in the second quarter of 2026.
- Operating profit fell to 15.4 million SAR, down from 36.3 million SAR in the previous quarter.
- While the company saw a slight 0.4% increase in revenue compared to the second quarter, the quarterly profit remained pressured by the downward trend in average selling prices.
The company has not provided further details regarding future outlooks or potential recovery strategies for the remainder of the fiscal year.
