Ladun swings to SAR 142.59M loss in 9M 2026; Q3 at SAR 68.67M

Ladun Investment Co. (Ladun) swung to a net loss of SAR 142.59 million in 9M 2026, compared with a net profit of SAR 2.24 million in 9M 2025.

The company attributed the turnaround to a 54.9% year-on-year (YoY) decline in revenue to SAR 401.3 million in 9M 2026, from SAR 889.4 million.

The lower revenue was mainly due to lower off-plan residential unit and land sales, construction revenue, and building materials manufacturing sales. Gross profit also fell 80.8% to SAR 32.2 million, from SAR 168.1 million, amid lower revenue.

The company also recorded a SAR 9.8 million impairment loss on customer contracts, a SAR 5.3 million provision for onerous contracts, and SAR 3.4 million in expected credit losses, compared with SAR 2.1 million in the year-earlier period. In addition, it recognized unrealized losses of SAR 4.7 million from the revaluation of fair-value investments, a SAR 1.3 million provision for legal cases, and SAR 2.8 million in expenses related to the transfer to the Main Market. Financing costs remained largely unchanged at SAR 65.5 million.

These factors were partially offset by a 16.4% decline in general and administrative expenses to SAR 84.8 million and a SAR 3.2 million increase in operation and maintenance revenue.

In Q3 2026, Ladun's net losses widened to SAR 68.67 million from SAR 19.09 million in Q3 2025, as revenue fell 64.9% YoY to SAR 87.8 million, from SAR 250 million.

Lower revenue during the quarter was due to lower construction, off-plan sales, and building materials manufacturing revenue. The company also swung to a gross loss of SAR 6.9 million, compared with a gross profit of SAR 35.5 million a year earlier, while financing costs rose to SAR 23.1 million and a SAR 5.3 million provision for onerous contracts was recorded. These factors were partially offset by a 20.7% decline in general and administrative expenses to SAR 26.2 million.

On a quarter-on-quarter (QoQ) basis, Ladun's losses widened to SAR 34.15 million in Q2 2026, as revenue declined 41.5% to SAR 87.8 million, from SAR 150.2 million in Q2 2026, while the company swung to a gross loss of SAR 6.9 million, compared with a gross profit of SAR 19.4 million in the previous quarter. The company also recorded a SAR 5.3 million provision for onerous contracts and higher financing and listing-related expenses.

Shareholders' equity, with no minority interest, stood at SAR 427.73 million at the end of Sept. 30, 2026, compared with SAR 635.66 million a year earlier.

Ladun accumulated losses reached SAR 13.21 million as of Sept. 30, 2026, representing 2.64% of the company's SAR 500 million capital.

View more financial results