Bawan posts SAR 218.3M profit in 2025; Q4 at 79.1M

Bawan Co. reported profits of SAR 218.3 million by the end of 2025, compared with SAR 106 million in 2024.

The company attributed the increase to a rise in gross profit margin to 14% from 11%, driven by the implementation of its strategy to increase the contribution of higher-margin products within its portfolio.

Growth was also supported by new products in the electrical and plastic industries, as well as the consolidation of results from the oil and gas segment.

Bawan said it began recognizing revenue and net profit from the newly acquired oil and gas segment effective Feb. 13, 2025, with the segment contributing SAR 152.4 million in net profit attributable to shareholders during the year.

Net profit from the electrical industries segment rose on higher sales volumes of new products and improved average selling prices.

The company also recorded a purchase gain of SAR 126.45 million following the completion of the purchase price allocation process related to the oil and gas acquisition.

This came despite additional depreciation and amortization expenses of SAR 121.37 million at the group level, stemming from intangible assets identified during the purchase price allocation and an increase in the fair value of fixed assets.

Bawan said these additional depreciation and amortization expenses are expected to continue at broadly similar levels in the near term, based on the remaining useful life of the assets.

Operating expenses increased due to the consolidation of the oil and gas segment and higher activity in the electrical and plastic industries segments.

The company also reported a decline in net profit from the metal and wood industries, as well as the plastic industries segment.

Higher zakat expenses, lower other income, and increased financing costs also weighed on earnings, with financing costs rising due to higher debt incurred for the acquisition and the consolidation of the segment’s working capital financing.

In Q4, Bawan’s net earnings soared 160.9% to SAR 79 million, from SAR 30.3 million in Q4 2024.

Total shareholders’ equity, after excluding minority interest, reached SAR 1.09 billion as of December 2025, up from SAR 928.78 million a year earlier.

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