Riyadh Cement CEO blames one-off pressures for profit decline in Q3 2025

Shoeil Al-Ayed, CEO of Riyadh Cement Co.

Riyadh Cement CEO Shoeil Al-Ayed said third-quarter profitability was affected by one-off pressures, including seasonality, pricing pressures, and the continued impact of fuel costs on margins.

Speaking to Argaam, Al-Ayed said the nine-month picture is more indicative, with the company seeing strong demand growth, particularly in Riyadh, driven by mega-projects and housing. Demand in the Riyadh region has grown by more than 18% year-on-year since the start of 2025, he noted.

He said the company has a positive medium-term outlook for profitability, supported by continued improvement in operational efficiency and sales mix to capture this growth.

Al-Ayed added that the demand base is expanding clearly in the Saudi market, especially in Riyadh, which supports a gradual improvement in revenue alongside better price stability and a commercial focus on higher-margin projects.

The company’s cement and clinker inventories stood at about 1.1 million tons at the end of Q3, among the lowest levels in the Kingdom, as most output is sold to mega-projects in the Riyadh region, he said.

He pointed to fuel costs, intense competition, and price volatility as the main drivers of quarterly pressure on the cement sector, stressing these are temporary and do not change the fact that Saudi Arabia is in the midst of a multi-year construction upcycle.

The company is addressing these pressures through price discipline, directing most of its sales to projects, and improving operational efficiency, he said.

Al-Ayed expects a seasonal improvement in Q4 amid better stability in volumes and prices. He said indicators are positive over the nine-month horizon and beyond, with Riyadh leading demand growth driven by mega-projects and housing.

Around 65% of the company’s sales go to mega-projects, he said, adding that Riyadh Cement enters the next phase with responsible optimism, based on tighter cost control, stronger commercial discipline, and a sales mix that favors higher-margin contracts.

He added that one of Riyadh Cement’s key advantages is its diversified product portfolio, as it is among the largest players in white cement, which helps offset periods of lower black cement sales.

According to Argaam data, the company’s profit fell to SAR 147.9 million in the first nine months of 2025, compared with SAR 229.1 million in the same period of 2024. Third-quarter profit was SAR 14.8 million.