Riyadh Cables profit climbs 12% to 913.92 million riyals

Summary

• Riyadh Cables posted 913.92 million riyals in nine-month profit, up 12% year over year.
• Revenue rose 12.5% to 8,926.27 million riyals, which the company attributed to higher prices.
• Cable demand tracks Saudi power and infrastructure spending, making the results a sector bellwether.

The latest

Riyadh Cables Group booked 913.92 million riyals in net profit for the first nine months of 2026, a 12% increase on the 816.96 million riyals recorded a year earlier, according to results published on 29 October 2026. The company said higher revenue, driven by higher prices, was behind the gain. Third-quarter profit alone rose 16%.

Details

• The headline number: Net profit for the nine months ended in 2026 reached 913.92 million riyals, against 816.96 million riyals in the same period of 2025, according to the filing carried by Argaam. The 12% increase was disclosed alongside the company's full income statement for the period.
• Revenue growth: Revenue climbed 12.5% to 8,926.27 million riyals from 7,935.54 million riyals a year earlier, outpacing the rise in net profit. The company is one of the Gulf's larger producers of cables, wires, overhead conductors and optical fibre.
• The margin story: Gross income rose just 4.7% to 1,377.97 million riyals, well below the pace of revenue growth. That gap points to higher input costs absorbing part of the top-line expansion rather than flowing through to the gross line.
• Operating performance: Operating income grew 12.8% to 1,071.51 million riyals, a faster clip than gross income and broadly in line with revenue. The company did not break out the cost items that separated the two measures.
• Per-share earnings: Earnings per share reached 6.09 riyals for the nine-month period, compared with 5.45 riyals in the corresponding period of 2025. The figure moved roughly in step with net profit, indicating no material change in the share count.
• The quarter: Third-quarter net profit stood at 325.13 million riyals, up 16% year over year — a faster rate than the nine-month figure. That suggests the second half opened stronger than the first, though the company did not provide a quarterly breakdown of revenue.
• The company's explanation: Riyadh Cables said the profit increase was due to higher revenue resulting from higher prices, according to the results statement. It did not cite volume growth, new contract awards or changes in product mix as contributing factors.
• What was not disclosed: The announcement did not include guidance for the fourth quarter, a dividend decision, or a breakdown of sales by geography or by product line. No order backlog figure accompanied the results.

Background

Riyadh Cables manufactures and sells cables, wires, overhead conductors and optical fibre. Its customer base is concentrated in power transmission and infrastructure projects, sectors tied closely to Saudi state capital spending programmes.

Between the lines

The divergence between 12.5% revenue growth and 4.7% gross income growth is the result's most telling line: the company attributes the top line to higher prices, which suggests those prices are passing through rising costs rather than widening margins. Operating income nonetheless grew 12.8%, faster than gross income, pointing to cost control below the gross line.

What's next

Full-year 2026 results and any accompanying dividend decision are the next disclosures to track, alongside whether the 16% third-quarter pace carries into the fourth quarter and whether gross margin recovers.

Source: Tadawul