Al Rasheed 9M 2026 profit drops 33% to SAR 46.98M; Q3 at SAR 16.49M

Mohammed Hadi Al Rasheed & Partners Co. reported a net profit of SAR 46.98 million in the first nine months of 2026, declining 32.8% from SAR 69.88 million a year earlier.

The decline was mainly attributed to lower contributions from the military equipment maintenance segment, which secured no new contracts during the period, compared with a gross profit of SAR 30.01 million a year earlier, amid varying contract award and execution timelines.

The company also recognized an expected credit loss provision of SAR 5.70 million, compared with a SAR 5.91 million reversal a year earlier, while financing costs rose to SAR 4.91 million from SAR 1.15 million and general and administrative expenses increased by SAR 6.57 million to support business expansion.

These negatives were partly offset by a 33.6% year-on-year (YoY) increase in revenue to SAR 324.08 million, driven by higher mining segment revenue, which rose to SAR 323.77 million from SAR 198.07 million following the execution of a previously announced high-quality silica sand supply contract for National Energy Services Reunited Corp.’s (NESR) Jafurah field project. The segment also maintained its profit margins during the period.

EBITDA declined 17.6% YoY to SAR 72.15 million in 9M 2026, from SAR 87.51 million.

The company's Q3 2026 net profit fell 28.3% YoY to SAR 16.49 million from SAR 22.99 million, as operating profit declined 21.3% to SAR 19.32 million, despite an 89% increase in revenue to SAR 120.78 million and a 12.5% rise in gross profit to SAR 34.83 million.

The quarterly decline in earnings was mainly attributed to an expected credit loss provision of SAR 4.21 million, compared with a reversal of SAR 3.11 million in Q3 2025, alongside higher financing costs, which rose to SAR 2.06 million from SAR 670,000, and a SAR 2.38 million increase in general and administrative expenses to support business expansion and the commencement of the Jafurah silica sand supply contract.

Sequentially, net profit decreased 20.5% from SAR 20.73 million in Q2 2026, despite a 5.2% increase in revenue to SAR 120.78 million, mainly due to higher expected credit loss expenses, which rose to SAR 4.21 million from approximately SAR 990,000 in the previous quarter.

Total shareholders' equity, with no minority interest, stood at SAR 338.37 million as of Sept. 30, 2026, compared with SAR 276.54 million a year earlier.

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