SENAAT CEO expects strong momentum, steel sector drives Q3 profits

Ahmed Zaatari, CEO of Advanced Building Industries Co. (SENAAT)

Advanced Building Industries Co. (SENAAT) expects to maintain strong momentum through the remainder of 2025, supported by positive demand indicators and stable contributions from its steel, air-conditioning, and insulation materials businesses, CEO Ahmed Zaatari said.

Speaking to Argaam, Zaatari said the company will continue focusing on expense discipline and operational efficiency, which he said should support operating margins. “Barring unexpected challenges, we expect strong performance in Q4 and are on track to finish the year with robust results,” he said.

Regarding financial results, Zaatari noted that despite a slight decline in revenues, the company achieved an unprecedented jump in profitability. This growth reflects major operational improvements, including investments in automation and robotics to enhance production line efficiency and reduce costs, alongside restructuring the financing portfolio and reducing debt, benefiting from lower interest rates and thereby cutting financing expenses.

The iron sector was the largest contributor to Q3 profits, currently accounting for about half of the group’s revenues and showing strong performance. It was followed by the insulation materials sector, benefiting from improved performance after full acquisition of Arabian Fiberglass Insulation Co. (AFICO) and higher sales and profit margins. The air-conditioning sector remained profitable, though its contribution was relatively lower this quarter due to increased competition from imported products.

Zaatari highlighted that the iron sector’s success is driven by strong domestic and international demand, supported by production facilities in Saudi Arabia, Vietnam, India, and Egypt, enabling the company to meet growing infrastructure and industrial project needs. Efficiency improvement programs also helped increase output and improve profit margins.

The insulation materials sector benefited from SENAAT acquiring its partner’s full stake in AFICO, allowing consolidation of the subsidiary’s results and boosting operational profits. Rising demand for energy-efficient insulation materials and improved production processes also contributed to the sector’s performance.

He emphasized that the full acquisition of AFICO had a clear positive impact on consolidated results and company profitability, as SENAAT now captures 100% of profits that previously were shared 49% with the former partner. The company is working to integrate AFICO operations more efficiently and align them with its strategy, simplifying insulation operations under one umbrella to enhance operational efficiency and profit margins, making the insulation sector a stronger contributor to the group.

Zaatari also noted that the company’s rebranding from Zamil Industrial Investment to SENAAT marks a new chapter. Under its new identity, the company plans to expand across a broader range of industrial sectors and strengthen its global presence.

He explained that SENAAT aims to transform from a traditional specialized industrial company into a multi-sector industrial platform offering integrated solutions in construction and manufacturing. This includes growth beyond its core sectors of iron, air-conditioning, and insulation materials by exploring new production lines and advanced manufacturing areas that complement existing expertise.

The company will continue to invest in innovation and advanced technologies, such as automation and artificial intelligence, to maintain competitive advantages. The new brand also gives SENAAT greater flexibility to form international partnerships and alliances, leveraging its reputation as a leading industrial player.

“Ultimately, our goal is to become a leading player in regional industrial development, supporting Saudi Vision 2030 by providing world-class industrial solutions and expanding into international markets,” he said.

According to Argaam data, SENAAT posted net profits of SAR 77.2 million for the first nine months of 2025, up from SAR 18.6 million in the same period of 2024, with Q3 profits reaching SAR 28.2 million.