On 2026-08-03 08:00:33 (Saudi Time), Saudi Cable 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 34.978% YoY to SAR 48.31 million (from SAR 74.30 million), driven primarily by persistent liquidity constraints and reduced customer advance payments that severely restricted working capital, accounting for an estimated 60–70% of the decrease. Net profit attributable to shareholders fell 59.798% YoY to SAR 26.09 million (from SAR 64.89 million), mainly due to lower revenue, higher raw material prices, increased general and administrative expenses, and a 19% decline in the share of associate (Midal) profits. Ongoing regional geopolitical conditions further added logistics and transportation friction, burdening unabsorbed factory overheads and compressing profitability. The operational loss also widened to SAR 62.90 million (from SAR 55.39 million), reflecting the combined pressure of reduced revenues and rising operating costs, while the net profit was largely sustained by the company's share of associate profits amounting to SAR 99 million(currency not specified in original).

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 16.885% to SAR 26.04 million (from SAR 22.27 million in the prior quarter), driven by a 55% surge in Contract Revenue from higher progress on customer contracts in Q2 2026, which more than offset a 12% decline in Sale of Goods. Despite the revenue improvement, net profit attributable to shareholders fell sharply by 89.535% QoQ to SAR 2.47 million (from SAR 23.61 million), primarily due to higher raw material prices, increased operating expenses, and a 19% decrease in the Share of Associate Profit. Ongoing regional geopolitical conditions further added logistics and transportation friction, burdening unabsorbed factory overheads and compressing profitability.

Other Items

The external auditor issued an unmodified conclusion for the period ended June 30, 2026, but included an emphasis of matter paragraph drawing attention to material uncertainties regarding the Group's ability to continue as a going concern. As noted in the auditor's report: "the Group incurred a net profit of SAR 26 million (June 30, 2025: net profit of SAR 64.8 million), and the Group's accumulated losses have reached SAR 248.7 million (December 31, 2025: SAR 274.8 million), representing 372.8% (December 31, 2025: 412%) of the Group's share capital. Further, the Group current liabilities exceeded its current assets by SAR 669.5 million as at June 30, 2026 (December 31, 2025: SAR 670 million). These conditions, along with other matters, cast significant doubt about the Group's ability to continue as a going concern and its ability to meet its obligations when it becomes due." Management has prepared forecasts for 2026 indicating net profit and positive cash flows, with a plan that includes assumptions related to cash injections through the issuance of rights issue instruments and revenue growth based on future orders and tenders; however, the auditor noted these elements represent future events and therefore involve material uncertainty regarding their outcome. Total shareholders' equity (after deducting minority equity) stood at SAR -159,227 thousand as of the current period, compared to SAR -360,168 thousand in the same period of the prior year. Earnings per share for the current six-month period were SAR 3.91, compared to SAR 9.72 in the same period of the prior year. Certain prior period figures have been reclassified to conform to current period presentation, which are not material in nature.

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