Watani Steel CEO expects sustained Q4 2026 growth amid robust local demand

Yousef Al-Turaif, CEO of Watani Iron Steel Co.

Yousef Al-Turaif, CEO of Watani Iron Steel Co., expects the company to maintain its positive performance in Q4 2026, supported by strong domestic construction demand, noting that seasonal fluctuations in the building materials sector and input costs, including electricity tariffs and key raw materials, remain important considerations.

In an interview with Argaam, Al-Turaif said the company expects to sustain high sales volumes in Q4 2026, supported by faster execution of major contracting and construction projects ahead of year-end.

Meanwhile, steel prices are expected to remain within competitive ranges that support continued operational profitability, given that pricing remains tied to global raw material trends and local operating expenses, the CEO added.

Addressing financial results, Al-Turaif said Watani Steel’s return to profitability in Q3 2026 was supported by revenue growth of more than 111%, normalized plant operations, and the resolution of adverse impacts from previous accidental disruptions, including a partial fire and production shutdown during the same period last year.

Revenue skyrocketed by 111.59% YoY to around SAR 174.76 million in Q3 2026, driven by higher sales volumes and improved average selling prices for iron and steel products.

According to Al-Turaif, the company has fully overcome the effects of the partial fire and previous production halts. Its factories are currently running at normal operating rates to fulfill contractual obligations and meet growing domestic demand, thereby supporting sales and revenue growth.

Regarding demand trends, Al-Turaif said the Saudi market is witnessing strong, steady demand for rebar and steel products, anchored by mega government projects, infrastructure developments, and real estate projects linked to Saudi Vision 2030, which remain key drivers of the company's sales growth.

He noted that most of the company's sales are concentrated in the Saudi market due to strong domestic demand. Meanwhile, regional and international markets represent a strategic option under study to diversify revenue streams whenever lucrative export opportunities arise for the company and its shareholders.

Argaam’s data showed that Watani Steel posted a net profit of SAR 31.81 million in the first nine months of 2026, reversing course from a SAR 3.55 million net loss last year. It also turned to a Q3 net income of SAR 5.98 million, versus a loss of around SAR 4.7 million a year earlier.

Last month, the company transferred from Nomu Parallel-Market to the Main Market (TASI).