SMASCO CEO explains key drivers behind growth in business, individuals segments

Abdullah Altimyat, CEO of Saudi Manpower Solutions Co. (SMASCO)

Saudi Manpower Solutions Co.’s (SMASCO) saw growth in its business segment during the third quarter of 2025, driven by accumulated demand for labor, while its individuals segment benefited from seasonal factors related to the back-to-school period and a better supply-demand balance supported by new regulations introduced earlier in the year, CEO Abdullah Altimyat told Argaam in an interview.

Altimyat said net profit rose 40% year-on-year (YoY) in Q3 2025, supported by higher operational activity across business lines, with revenues increasing both quarterly and annually.

He added that SMASCO continues to implement initiatives to improve profit margins by diversifying its labor portfolio to better align with local demand, and by reviewing its operational setup to enhance resource utilization.

The CEO noted that consolidated revenues rose 15% YoY in Q3 2025, driven by stronger performance in key segments, with business segment revenue up 15% and individuals segment revenue up 18%, reflecting higher demand for the company’s services.

Commenting on the losses of Waad Home Services Marketing Co., Altimyat said SMASCO made a strategic investment in the company, which provides complementary services to SMASCO’s core operations in Saudi Arabia.

Waad, established and launched operations in early 2025, is 50% owned by SMASCO. As a newly formed venture, it requires time and investment to penetrate the market and reach its target share. The losses recorded in Q3 are in line with its business plan and market entry strategy, he said.

Regarding provisions for doubtful debts, Altimyat said these were made due to variations in cash cycle durations across company segments. “Certain segments have longer payment and approval processes, which delay collections. Similarly, some supplier payment cycles are extended, requiring higher accounting provisions for credit risk,” he explained.

The CEO added that SMASCO expects continued positive performance in Q4 2025, supported by steady demand for workforce services, though without the seasonal boost seen during the back-to-school period in the previous quarter.