Arabian Cement Net Profit Surges 105% in H1 2026
Arabian Cement Company (Tadawul: 3010) announced its H1 2026 financial results, with net profit surging 104.8% YoY to SAR 90.3 million, while revenue rose 1.74% to SAR 479.1 million.
Key Numbers
Arabian Cement Company (Tadawul: 3010) reported its interim financial results for the six months ended June 30, 2026, with net profit attributable to shareholders jumping 104.8% year-on-year to SAR 90.3 million from SAR 44.1 million. The sharp increase was driven by higher average selling prices at the parent company, lower depreciation expense following a revision of estimated useful lives of plant equipment, increased export sales volume from the subsidiary, and the absence of a one-off income tax expense recorded in the prior-year period.
Key Financial Results
| Item | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | SAR 479.1M | SAR 470.9M | +1.74% |
| Net Profit | SAR 90.3M | SAR 44.1M | +104.8% |
| EPS | SAR 0.90 | SAR 0.44 | +104.5% |
Highlights from the Statement
The company attributed the YoY net profit increase to:
- Higher average selling prices at the parent company.
- Lower depreciation expense after revising the estimated economic useful lives of plant equipment.
- Increased export sales volume from the subsidiary.
- Absence of a one-off income tax expense recorded in the prior-year period.
Quarter-on-quarter, revenue fell 8.47% to SAR 229 million (vs. SAR 250.2 million in Q1 2026), mainly due to lower sales volume at the parent company during the Eid Al-Adha holiday and a decrease in average selling price. Net profit declined 49.2% QoQ to SAR 30.4 million.
Guidance
The company did not provide specific forward guidance.
Impact on the Stock
The strong annual performance is likely to support the stock, especially with EPS rising to SAR 0.90. However, the quarterly decline may temper gains.
What This Means for Investors
The results show a significant improvement in profitability driven by operational and tax factors. Investors should monitor the sustainability of higher selling prices and the long-term impact of lower depreciation.
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