Red Sea incurs losses of SAR 14M in 9M 2025, SAR 1.7M in Q3

Red Sea International Co. narrowed its net loss (after minority interest) to SAR 14 million for the first nine months of 2025, compared to SAR 54 million in the same period last year.

Before minority interest, the company recorded a net profit of SAR 7.7 million, versus a loss of SAR 19.6 million in the corresponding period of 2024.

The improved performance was mainly driven by a 16% year-on-year (YoY) rise in revenue to SAR 2.46 billion, supported by stronger operational efficiency and higher contribution margins, which helped absorb fixed costs.

The gross profit margin stood at 11% in 9M 2025, slightly down from 11.4% a year earlier, reflecting the execution of projects with a marginally lower profitability.

Operating profit more than doubled to SAR 68 million in 9M 2025, from SAR 31 million last year. This came thanks to a 2% YoY decline in selling, distribution, and administrative expenses and a 13% drop in expected credit losses.

Meanwhile, financing costs rose 36% YoY due to higher borrowing levels.

In Q3 2025, the company’s losses shrank to SAR 1.7 million, versus SAR 30.34 million in the same quarter last year, supported by a 40% YoY increase in revenue to SAR 986 million.

Sequentially, meanwhile, Red Sea reported higher losses compared to SAR 1.26 million in Q2 2025, despite a 27% quarter-on-quarter (QoQ) rise in revenue to SAR 986 million.

Shareholders’ equity, after minority interest, stood at SAR (6.58) million by the end of the nine-month period, compared to SAR 16.35 million a year earlier.

As of Sept. 30, 2025, accumulated losses amounted to SAR 297.15 million, accounting for 98.3% of capital.

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