Zamil profits surge on efficiency, cost control; Q3 outlook cautiously optimistic: CEO

Ahmed Zaatari, CEO of Zamil Industrial Investment Co.

Operational efficiency improvements and cost control helped translate Zamil Industrial Investment Co.’s sales growth into strong profit growth during Q2 2025, said CEO Ahmed Zaatari.

In a call with Argaam, Zaatari said the increase in net profit reflects the effectiveness of the company’s strategy to expand its product portfolio, focus on high-margin sectors, and maintain strict cost discipline.

He noted that total sales in Q2 2025 reached SAR 1.46 billion. The air conditioning segment grew by 16%, supported by energy efficiency initiatives and export expansion. Steel sales rose by 8%, driven by continued infrastructure and industrial projects. Insulation sales surged 89%, fueled by greater energy efficiency awareness, regulatory requirements, and the acquisition of Building Component Solutions Co. (BCOMS).

In contrast, contracting revenues fell 20%, though growth in other segments offset this decline, indicating healthy underlying demand.

The CEO explained that the air conditioning segment’s performance was supported by higher sales volumes, the launch of high-efficiency products, expansion of export markets, and participation in major projects such as NEOM and the Red Sea.

The steel segment benefited from demand for value-added products—such as engineered metal buildings and processing equipment—which gained market share, while improved project execution enhanced customer confidence. The insulation segment saw strong domestic and international demand, further boosted by BCOMS sales.

He emphasized that Zamil remains a leading player in all its core sectors. Zamil air conditioners lead the Saudi market and are among the largest manufacturers in the Middle East, supplying major commercial, industrial, and residential projects.

He emphasized that Zamil remains a leading player in all its core sectors. Zamil Air Conditioners Holding Co. leads the Saudi market and is among the largest manufacturers in the Middle East, supplying major commercial, industrial, and residential projects.

In steel, the company ranks among the region’s largest suppliers of pre-engineered buildings, steel structures, and processing equipment.

In insulation, the acquisition of BComs from the steel sector has positioned Zamil as the leading supplier of insulated glass and other insulation materials in the Kingdom, with a strong market share across Gulf markets. Q2 results show the company is expanding its customer base and reinforcing its competitive position.

Looking ahead to Q3, Al-Zaatari expressed cautious optimism, citing continued strength in infrastructure, industrial, and residential projects in Saudi Arabia and the Gulf region. He expects demand for air conditioning, steel, and insulation products to remain robust amid stricter energy efficiency regulations and progress on mega projects.

While seasonal factors may slightly affect sales in Q3, revenues are projected to remain stable or rise modestly compared to Q2, supported by a continued focus on high-margin products, operational efficiency, and prudent cost management to strengthen profitability.

Potential challenges include fluctuations in raw material prices and global economic conditions. Nevertheless, the company’s diversified portfolio, strong order book, and healthy balance sheet position it well to sustain growth, continue executing ongoing projects, and capture export opportunities.

According to data available with Argaam, Zamil’s net profit rose to SAR 49 million in H1 2025, up from SAR 11.53 million a year earlier, with Q2 profit reaching SAR 25.3 million.