Tabuk Cement Q1 2026 Net Profit Plunges 68.6% to SAR 4.1M
Tabuk Cement Co. (3090) reported a net profit of SAR 4.1 million for the first quarter of 2026, a 68.6% decline year-on-year. The auditor issued a qualified opinion, citing a material overstatement of property, plant and equipment by at least SAR 38 million.
Key Numbers
Tabuk Cement Co. (3090) announced its interim financial results for the three months ended March 31, 2026, posting a net profit of SAR 4.1 million, down 68.6% compared to the same period last year. The decline was driven by lower revenue and higher cost of sales.
Key Financial Results
| Item | Current Quarter | Comparable Quarter | Change % |
|---|---|---|---|
| Revenue | SAR 62.55M | SAR 67.68M | -7.6% |
| Net Profit | SAR 4.10M | SAR 13.04M | -68.6% |
| EPS | SAR 0.05 | SAR 0.14 | -64.3% |
Highlights from the Statement
- Revenue Decline: Revenue fell 7.6% YoY to SAR 62.55 million, mainly due to lower average selling prices despite higher sales volumes.
- Gross Profit Compression: Gross profit dropped from SAR 20.5 million to SAR 9.96 million, impacted by increased cost of sales.
- Auditor's Qualified Opinion: The auditor issued a qualified opinion, noting a material overstatement of property, plant and equipment by at least SAR 38 million as of December 31, 2025. The carrying amount of the cement plant was SAR 782 million as of March 31, 2026.
- Equity Decrease: Total shareholders' equity declined 1.5% to SAR 1.174 billion.
Guidance
No specific guidance was provided by the company.
Impact on the Stock
The weak earnings and auditor's qualification are likely to weigh on investor sentiment and could pressure the stock (3090) in the near term.
What This Means for Investors
The results highlight operational challenges at Tabuk Cement, with declining revenue and profitability. The auditor's qualification raises concerns about financial reporting accuracy, warranting close monitoring of developments.
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