Arabian Cement CEO expects continued price pressure amid excess output

Arabian Cement CEO Badr Johar says Q3 2025 profit growth was driven by higher average selling prices at the parent company

Arabian Cement Co. expects pricing pressures to continue due to uneven regional demand, as manufacturers target select areas by lowering prices amid high production surplus and inventory levels, CEO Badr Johar told Argaam.

Prices fluctuated both across and within regions, reflecting the ongoing supply-demand imbalance, he said, adding that certain producers were trying to gain market share by offering lower selling prices despite demand rising significantly from last year.

Johar said that fierce competition has pushed prices to low levels, with sharp declines driving volumes to move from lower-priced to higher-priced regions, shifting competitive pressures to neighboring markets.

The cement producer’s market share reached 6% in the Kingdom by the end of Q3 2025.

Arabian Cement is focusing on quality sales, targeting established clients and high-yield regions with new premium cement products, such as ordinary and pozzolanic, priced in line with other offerings to strengthen market perception.

On financials, Johar said Q3 2025 profit growth was driven by higher average selling prices at the parent company, improved production efficiency, and strict cost control, which offset rising energy expenses.

Revenue gains were supported by slightly higher sales at the parent company, with significant growth at the Jordanian subsidiary, driven by domestic volumes and exports to Syria.

Overall, demand rose 12.75% year-on-year (YoY), the CEO said.

Arabian Cement’s net profit fell 15% to SAR 109.6 million for the first nine months of 2025, down from SAR 128.8 million. Q3 profit rose 43% YoY to SAR 65.5 million, according to Argaam’s data.