Equipment House CEO optimistic about Q4 on new projects, cost control

Faisal Al-Atawi, CEO of Scientific and Medical Equipment House Co. (Equipment House)

Faisal Al-Atawi, CEO of Scientific and Medical Equipment House Co. (Equipment House), said the company is optimistic about the fourth quarter, supported by a growing contribution from new projects, continued cost discipline. This is in addition to strong operating cash flow, which reached approximately SAR 87 million in the first nine months of 2026.

The company aims to close the year with improved profitability and build on that performance to achieve sustainable growth in 2027, Al-Atawi told Argaam.

On the impact of geopolitical tensions in the region on the cost of importing medical devices and supplies and delays in shipments, the CEO said the company's exposure to these developments is limited given the nature of its business model.

More than 80% of the company's Q3 revenue came from operations, maintenance, catering, and contracting services carried out within Saudi Arabia, he noted.

In the supply segment, the company closely monitors shipping plans with its global suppliers and ensures the availability of spare parts for critical equipment to prevent any disruption to maintenance contracts.

Equipment House has been monitoring developments closely since the tensions began and regularly reassessing their impact on project costs, the CEO noted, adding that the company disclosed the relevant effects in its financial statements. He also highlighted the improvement in profit margins during Q3.

Regarding the financial results, Al-Atawi said Q3 performance reflects the company's focus on revenue quality and profitability rather than revenue size alone. Profit growth was supported by cost discipline, with selling and marketing expenses declining by approximately SAR 2.6 million and general and administrative expenses falling by around SAR 1 million.

The company also focused on higher-margin contracts, lifting its gross profit margin to 16.3% from 14.3%, while operating profit nearly doubled to SAR 13.4 million.