Equipment House has SAR 3.5B in project backlog, focuses on operating revenue growth

Faisal Al-Atawi, CEO of Scientific and Medical Equipment House

Scientific and Medical Equipment House Co. (Equipment House) has a project backlog of around SAR 3.5 billion, CEO Faisal Al-Atawi told Argaam in an interview.

Eying high-quality opportunities in line with its strategy, Equipment House adopts a selective approach, prioritizing project quality, sustainable returns, and execution efficiency.

The company aims for stronger results in H2 2026 compared with the same period last year, supported by ongoing projects, the ramp-up of new projects and efforts to improve operating efficiency and optimize costs.

Equipment House is upbeat about 2027, Al-Atawi said, expecting the robust project backlog and continued execution of strategic initiatives to boost revenue and earnings growth.

The company has recently demonstrated better operating performance, and delivered stronger results quarter-on-quarter, despite revenue-related headwinds in H1 2026. The improvement was mainly driven by a continued focus on enhancing operating efficiency and optimizing general, administrative, and selling and marketing expenses, while maintaining service quality and execution efficiency.

Moreover, close monitoring of project execution and collections also supported results and helped reduce expected credit loss provisions.

Addressing the decline in the company’s Q2 2026 revenue, Al-Atawi said the drop was largely related to non-recurring factors in the comparative period, as well as the completion of certain projects.

New projects have started contributing to revenue, he said, adding that the company’s focus going forward will be on driving high-quality, value-accretive operating revenue growth rather than pursuing topline growth solely for scale.

The recent awards across the company’s core business segments, including projects with the Ministries of Health and Justice, as well as the Tabuk Health Cluster, represent an important addition to its project backlog. Beyond their contribution to business volumes, the projects further strengthen the company’s presence in target sectors and support the development of long-term strategic client relationships.

On cost optimization, Al-Atawi said the company’s approach is not simply about cutting spending, but rather about optimizing resource allocation and improving operating efficiency while maintaining service quality and execution standards. The company continues to refine this approach, which is expected to bolster margins and earnings quality.

Equipment House places significant emphasis on rewarding shareholders and has consistently paid dividends since its listing. It also once distributed bonus shares.

It will continue to assess its dividend policy to strike a balance between shareholder returns and retaining sufficient financial resources to fund growth and execute future projects.

According to Argaam data, Equipment House's H1 2026 net profit declined 4% to SAR 19.2 million, from SAR 20.1 million in the same period of 2025, while Q2 profit fell 12% year-on-year to SAR 10.9 million.