SENAAT CEO sees strong demand, higher activity in Q2

Zaatari further noted that net profit increased in Q1 2026 despite lower revenues, reflecting the strength of the group’s business model and the quality of its operational performance.

He added that profitability growth was driven by four main factors: improved operating margins, continued discipline in cost management, lower financing expenses, and improved results from associates and joint ventures.

The CEO also stated that gross profit rose to SAR 265 million, fueled by the strong performance of the steel and insulation segments, while financing expenses declined by SAR 4.5 million due to continued debt reduction and improved restructuring of some financing obligations, which supported net profit and enhanced earnings quality.

“The company’s resilient business model and its ability to achieve profitability across different economic cycles, while continuing to focus on operational efficiency and maximizing shareholder returns,” he said.

Zaatari added that the construction segment was affected by the timing of project deliveries and contractual phases, while the limited decline in the air-conditioning segment was within the usual seasonal pattern, as demand typically starts rising during the second quarter ahead of the summer season.

He pointed out that the steel and insulation segments continued to deliver strong performance during Q1 2026, supported by rising demand from infrastructure and urban development projects, in addition to growing focus on energy efficiency and thermal insulation solutions in Saudi Arabia and the region.

“The operational efficiency and increased production through expanded use of automation and robotics in manufacturing, alongside vertical integration, helped support margins despite fluctuations in raw material prices”, according to Zaatari.

He affirmed that SENAAT still views the fundamentals of both segments positively, with demand continuing and growth opportunities improving during the coming periods.

Zaatari also explained that improving the balance sheet structure and reducing financing costs represent one of the group’s strategic priorities, noting that shareholders’ equity increased, reflecting the group’s strong financial position and improved solvency levels.

Moreover, the positive impact of improving the financing structure is expected to continue supporting the company’s profitability moving forward, he added.

The CEO expected activity levels across the group’s segments to improve during the second quarter, driven by seasonal factors and continued execution of existing projects.

“We continue to focus on improving operational efficiency, enhancing margins, and reducing financing costs, in a way that supports sustainable profitability growth and stronger financial performance quality,” he added.

Zaatari also noted that the group’s operating environment is supported by strong growth drivers linked to Vision 2030, infrastructure projects, and industrial development initiatives in the Kingdom.

According to Argaam’s data, SENAAT’s profit rose to SAR 31 million by the end of Q1 2026, compared to SAR 23.7 million during the same period in 2025.