Alwasail Industrial Q1 Net Profit Plunges 62% to $4.99M
Alwasail Industrial Company (Ticker: 4148) announced its Q1 2026 financial results, with net profit falling 62.4% year-on-year to SAR 4.99 million, driven by a 12.9% decline in revenue and a 4% increase in costs due to higher raw material prices.
Key Numbers
Alwasail Industrial Company (Ticker: 4148) reported its interim financial results for the three months ended March 31, 2026, with net profit plummeting 62.4% year-on-year to SAR 4.99 million. Revenue also declined 12.9% to SAR 93.32 million, primarily due to a 16.4% drop in pipe sales amid weak demand.
Key Financial Results
| Item | Current Quarter | Prior Year Quarter | Change % | Previous Quarter | Change % |
|---|---|---|---|---|---|
| Revenue | SAR 93.32M | SAR 107.10M | -12.9% | SAR 135.93M | -31.4% |
| Gross Profit | SAR 20.12M | SAR 30.90M | -34.9% | SAR 30.95M | -35.0% |
| Operating Profit | SAR 7.80M | SAR 15.35M | -49.2% | SAR 11.50M | -32.2% |
| Net Profit | SAR 4.99M | SAR 13.28M | -62.4% | SAR 7.57M | -34.1% |
| EPS | SAR 0.02 | SAR 0.05 | -60.0% | — | — |
Key Highlights
- Revenue Decline: Sales dropped 12.9% YoY, mainly due to a 16.4% decrease in pipe sales resulting from reduced demand.
- Cost Pressure: Costs increased 4% due to higher raw material prices.
- Sequential Performance: QoQ revenue fell 31.4% as the agricultural season ended, impacting pipe and fittings sales.
- Balance Sheet: Total shareholders' equity rose 3.6% to SAR 388.06 million. No accumulated losses were reported.
- Auditor's Opinion: Unmodified opinion with no additional comments.
Guidance
The company did not provide specific forward guidance in the earnings release.
Stock Impact
The weak financial performance is likely to weigh on Alwasail Industrial's stock (4148) in the near term, given the sharp profit decline. However, the gross margin of 21.6% (vs. 28.8% a year ago) may partially cushion the impact.
What This Means for Investors
The results highlight operational challenges, including weak demand for core products and rising input costs. Investors should monitor demand trends in the agricultural and industrial sectors, as well as the company's cost management strategies.
Frequently Asked Questions
Found this useful? Share it