On 2026-05-12 15:53:35 (Saudi Time), Takween Advanced Industries Co. announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Sales increased 49.785% YoY to SAR 217.19 million, primarily driven by the full consolidation of SAAF's financial results and improved sales volumes, despite declining average selling prices due to changes in sales mix. Net loss widened 99.579% to SAR 18.998 million, mainly due to higher cost of revenues, increased general and administrative expenses, higher finance costs, and increased share of losses from equity method investments related to the SAAF acquisition. This occurred despite the revenue growth and recognition of a gain on bargain purchase from the SAAF acquisition transaction.

Quarter-on-Quarter Performance Drivers

QoQ revenue increased 43.17% to SAR 217.19 million, driven by full consolidation of SAAF's financial results and improved sales volumes, despite declining average selling prices due to sales mix changes. Net loss decreased 87.39% to SAR 18.998 million from SAR 150.638 million in the previous quarter, primarily due to the absence of SAR 115.1 million goodwill impairment losses recognized in Q4 2025, along with higher revenues and recognition of a gain on bargain purchase from SAAF acquisition. This improvement occurred despite higher cost of revenues, increased general and administrative expenses, and higher finance costs.

Other Items

The auditors issued an unmodified conclusion with no additional comments or qualifications noted. Accumulated losses reached SAR 519.378 million, representing 67.92% of share capital as of March 31, 2026. The Board of Directors became aware on April 28, 2026 that accumulated losses had exceeded 50% of share capital as of December 31, 2025, mainly due to SAR 115 million goodwill impairment losses and SAR 18.9 million increased share of losses from equity method investments related to SAAF during 2025. The company confirms its commitment to implementing procedures applicable to listed companies whose accumulated losses reach 50% or more of share capital, including compliance with Article 132 of the Companies Law requiring disclosure within 60 days and convening an Extraordinary General Assembly within 180 days to consider company continuation or dissolution. Total shareholders equity declined 55.754% to SAR 169.097 million compared to the same period last year, while loss per share increased to SAR 0.25 from SAR 0.12 in the prior year period.

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