Al Yamamah Steel’s contracts backlog hits SAR 1.1B; sales, profit likely to grow in 2027: CEO

Sahal Al-Thobaiti, CEO of Al Yamamah Steel Industries Co.

Sahal Al-Thobaiti, CEO of Al Yamamah Steel Industries Co., said that the company’s current contracts backlog is valued at approximately SAR 1.1 billion, adding that it expects to secure additional contracts before the end of 2026.

In an interview with Asharq Bloomberg on the sidelines of the WPC Energy Congress in Riyadh, Al-Thobaiti said the company expects sales and profits to increase in 2027, supported by expansion in the electricity and renewable energy sectors and growing demand for steel following the current slowdown in construction activity.

The electricity segment is currently driving sales and profit growth. The company is expanding its Yamama Power Transmission Towers plant, aiming to increase production capacity by 30% starting in January 2027, he added.

Al-Thobaiti further stated that the company has opened a lighting plant in Jeddah, affiliated with its poles plant, to strengthen its presence in the electricity sector. He said the company also has expansion plans across several sectors, with further details to be announced later.

Regarding financing, he said the company’s loans total approximately SAR 950 million, which are short-term loans used to finance working capital and are supported by growth in sales and ongoing projects.

As per Argaam’s data, Al Yamamah Steel signed recently two contracts with Algihaz Contracting Co. to supply steel towers for a project to construct a 380 kV extra-high-voltage transmission line in the Western Region, with a total value of SAR 254.28 million.

Supply is scheduled to begin in March 2027 and the financial impact expected to materialize in the first quarter of 2027.