Eastern Cement profit rises 13% to SAR 141M in H1 2026; Q2 at SAR 69M

The company cited higher revenue, driven by better cement sales volumes and revenue from precast concrete sales. Gross profit improved.

In addition, earnings benefited from a higher share of profit from associates, lower other expenses, and higher gains from the fair value remeasurement of investments through profit or loss.

The second-quarter profit grew by 10% to SAR 69 million from SAR 63 million in Q2 2025.

Eastern Cement attributed the year-on-year (YoY) increase in quarterly profit to higher revenue, driven by better cement sales volumes, which in turn boosted gross profit. Earnings were also supported by higher other income and gains from the fair value remeasurement of investments through profit or loss.

However, net earnings fell 4.2% quarter-on-quarter (QoQ) from SAR 72 million, due to lower revenue, as cement sales volumes fell and revenue from precast concrete sales decreased.

The weaker topline weighed on gross profit. Earnings were also pressured by higher general and administrative expenses, lower dividend and murabaha income, lower gains from the fair value remeasurement of investments through profit or loss, and the recognition of expected credit loss provisions during the quarter.