On 2026-08-09 09:51:43 (Saudi Time), National Metal Manufacturing and Casting Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending June 30, 2026, sales/revenue declined 33.773% YoY to SAR 88.75 million (from SAR 134.01 million), primarily driven by a ~40% drop in drawn wire and related products sales and a ~26% decline in axles and spare parts sales, both attributable to delays in the arrival of imported raw materials and shortages of available finished goods, compounded by an ~8% decrease in casting products sales due to low sector demand in Q1 2026. Despite the revenue decline, the net loss attributable to shareholders narrowed by 10.581% YoY to SAR 7.69 million (from SAR 8.6 million), supported by improved average selling prices for drawn wire and related products, a better sales mix in casting products, reductions in selling, distribution, and general administrative expenses, higher other income, lower finance costs, and a decreased Zakat provision.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 20.996% to SAR 39.17 million (vs. SAR 49.58 million in the prior quarter), driven by a ~21% drop in drawn wire and related product sales and a ~46% fall in axles and spare parts sales, both due to delays in imported raw material arrivals and shortages of finished goods, partially offset by a ~79% improvement in casting product sales from a better sales mix. The net loss narrowed QoQ to SAR 2 million (from SAR 5.69 million), supported by improved average selling prices for drawn wire products, a better casting product sales mix, lower selling and distribution expenses, and higher other income.

Other Items

National Metal Manufacturing and Casting Co.'s interim financial report for the six months ended June 30, 2026 received an unmodified conclusion from the external auditor, with no additional comments in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. Accumulated losses stood at SAR 136.08 million, representing 38.44% of the company's paid-up capital of SAR 354 million. The company disclosed that it became aware that accumulated losses had reached 35% or more of paid-up capital upon closing the financial statements for the year ended December 31, 2025, and will accordingly apply the procedures and instructions applicable to Saudi-listed companies whose accumulated losses reach 20% or more of capital. The company attributed the accumulated losses to factors including decreased sales due to low demand in local and export markets, competition from Chinese imports, the entry of local manufacturers of P.C. Strand into certain export markets, high fluctuation in high-carbon steel prices, delays in imported raw material arrivals due to geopolitical events and rerouting of shipments from Dammam Port to Jeddah Port, and a decrease in average selling prices for some products. In response, the Board has planned a 2026 strategy based on company restructuring (which began in mid-2025), improving operational efficiency by reducing unnecessary expenses, increasing income through declared projects, and employing qualified personnel. Additionally, during 2024, the Board decided to discontinue the HWS production line due to lack of economic feasibility. Total shareholders' equity (after deducting minority equity) stood at SAR 217.92 million, compared to SAR 236.88 million in the same period of the prior year, a decline of 8.004%. Certain comparative figures have been reclassified to comply with the current period presentation of the interim condensed consolidated financial statements.

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