Najran Cement Company reported a 29.5 per cent YoY increase in net profit to SAR5.85m (US$1.6m) in the second quarter of 2026, despite a slight decline in revenue.
Quarterly revenue fell 0.7 per cent to SAR123.79m from SAR124.70m in 2Q25, as lower average selling prices offset an increase in sales volumes. However, lower production input costs lifted gross profit by 10.3 per cent to SAR23.70m, while operating profit advanced 24.1 per cent to SAR12m.
For the first half of 2026, revenue declined 5.1 per cent YoY to SAR246.81m, while net profit fell 44.9 per cent to SAR11.96m. Najran Cement attributed the weaker half-year result to lower average selling prices and higher other expenses, despite increased sales volumes.
The company’s auditor issued a qualified conclusion relating to the impairment assessment of property, plant and equipment with a carrying value of SAR1.91bn. Management concluded that no impairment was required, but the auditor said it had been unable to obtain sufficient evidence to assess the assumptions and forecasts used in the assessment.
