SMASCO’s business segment boosted by demand backlog, individuals segment backed by seasonality, new regulations: CEO

Saudi Manpower Solutions Co.’s (SMASCO) business segment witnessed growth driven by accumulated demand for labor, while the individual segment benefited from seasonal factors linked to the back-to-school period in the third quarter, as well as an improved balance between supply and demand supported by new regulations introduced earlier in the year, CEO Abdullah Altimyat told Argaam in an interview.

He further said that the 40% growth in net profit during Q3 2025 came thanks to an increase in operational activity across the company’s segments, as revenues grew both quarter-on-quarter and year-on-year.

He added that the company continues to implement initiatives aimed at improving profit margins through diversifying its labor portfolio to better align with local demand, in addition to reviewing operational positioning to enhance resource utilization.

The CEO further clarified that SMASCO’s consolidated revenues grew 15% YoY in Q3 2025, driven by improved performance in key segments — with business segment revenues up 15% and individuals segment revenues up 18%, reflecting higher demand for the company’s services.

Regarding the losses of Waad Home Services Marketing Co., the top executive said the company made a strategic investment in Waad, which provides complementary services to SMASCO’s core operations in the Saudi market.

Waad was established and began operations in early 2025, with SMASCO holding a 50% stake. As a newly launched venture, it requires time and investment to penetrate the market and achieve its targeted share. The losses recorded in the third quarter align with the company’s business plan and market entry strategy, according to the CEO.

As for setting aside provisions for doubtful debts, the CEO noted that this was due to variations in cash cycle durations among the company’s segments. “Certain segments have longer payment and approval processes, which lead to delayed collections. Similarly, some supplier payment cycles are extended, requiring higher accounting provisions for credit risk,” he said.

Altimyat also expected continued positive performance in Q4 2025, backed by sustained demand for workforce services, though without the seasonal boost from back-to-school factors that fueled growth in Q3 2025.