Aslak faced fierce price war in Q2 2025, sees gradual demand recovery: CEO

Nabil Al-Amir, CEO of United Wire Factories Co. (Aslak)

United Wire Factories Co. (Aslak) faced a sharp pricing competition in Q2 2025 amid weak demand, which prompted producers to cut prices to protect their market shares, CEO Nabil Al-Amir told Argaam.

In Q2 2025, sales volumes rose by about 40% year-on-year (YoY), but the average gross profit margin fell 31%, leading to a 55% drop in the three-month net income.

According to the CEO, Aslak witnessed higher sales in the second quarter of this year on elevated sales volumes. This was fueled by stronger marketing efforts and competitiveness. However, demand stayed relatively weak, demonstrating no signs of a material rebound.

Elsewhere, capacity utilization rates improved in Q2 2025 and are still on the rise, thanks to higher sales volumes. Further, efforts to maximize utilization rates are ongoing.

Al-Amir expects demand to recover gradually by late Q3 2025, driven by the end of summer holidays and the start of work on some mega projects. This is bound to underpin local economic activity and boost demand for Aslak’s various product lineups.

According to Argaam data, Aslak’s H1 2025 profit fell 88% to SAR 1.2 million, from SAR 10.3 million a year earlier. Additionally, the second-quarter earnings dropped by nearly 55% to SAR 1.9 million.