Obeikan Glass Q1 2026 Net Profit Plunges 62% Despite Revenue Growth
Obeikan Glass Co. (4145) announced its Q1 2026 net profit fell 62.6% YoY to SAR 2.29 million, despite an 11% revenue increase to SAR 94.42 million. The decline was driven by higher losses from a subsidiary still in development and lower average selling prices.
Key Numbers
Obeikan Glass Co. (4145) reported its interim financial results for the three months ended March 31, 2026, posting a net profit of SAR 2.29 million, a sharp decline of 62.642% year-on-year. This came despite an 11.056% rise in revenue to SAR 94.42 million, supported by the inclusion of subsidiary Obeikan AGC's results in the consolidated financial statements.
Key Financial Results
| Item | Current Quarter | Same Quarter Last Year | Change % | Previous Quarter | Change % |
|---|---|---|---|---|---|
| Revenue | SAR 94.42M | SAR 85.02M | +11.056% | SAR 87.85M | +7.478% |
| Net Profit | SAR 2.29M | SAR 6.13M | -62.642% | SAR 34.07M | -93.276% |
| EPS | SAR 0.07 | SAR 0.19 | -63.16% | - | - |
Highlights from the Statement
The company attributed the YoY net profit decline to two main factors:
- Increased losses from the subsidiary Saudi Aluminum Casting Foundry, which is still in its operational development stages.
- Lower average selling prices compared to the same quarter last year.
On a quarter-on-quarter basis, net profit plummeted 93.276% mainly because the previous quarter benefited from a non-recurring reversal of allowance for doubtful debts amounting to SAR 29.5 million following the Obeikan AGC acquisition in Q4 2025.
Guidance
The company did not provide any future guidance in its statement.
Impact on the Stock
No immediate stock reaction was reported, but the sharp profit decline is likely to weigh on investor sentiment in the near term.
What This Means for Investors
The Q1 performance highlights clear operational pressures, particularly from early-stage subsidiaries. While revenue growth signals healthy demand, the profitability decline warrants close monitoring of subsidiary operations and margin improvement.
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