Alujain balance sheet debt-free; goodwill impairment non-cash: CEO

Khalid Al-Dawood, CEO of Alujain Corp.

Alujain Corp. is entering 2026 with a debt-free balance sheet and a very strong cash position, as well as full coverage of current liabilities amounting to SAR 309.4 million through operating cash flows, CEO Khalid Al-Dawood said.

In a statement commenting on Alujain’s 2025 performance, Al-Dawood added that the year represented an exceptional phase marked by two parallel tracks: non-cash accounting adjustments in the balance sheet in accordance with IFRS, and continued capital investments positioning the company for its largest growth phase in over a decade.

He explained that the goodwill impairment of SAR 1.2 billion—subject to an independent valuation—reflects current polypropylene market price assumptions, a book entry with no cash impact on the company’s operations.

Excluding this effect, the company generated SAR 177.6 million from operating activities, fully repaid its long-term debt, distributed SAR 154.7 million dividends, and invested more than SAR 1 billion in capital expenditures to expand production capacity.

He added that the new plant in Yanbu, currently in site preparation and potential EPC contract award phase, is expected to increase additional annual production capacity by nearly 150%.

Al Dawood noted that the company is entering 2026 with a clear investment strategy and positive expectations for cash flow growth from its existing assets.

According to Argaam data, Alujain’s net losses widened to SAR 833.9 million in 2025, compared with SAR 50.7 million in 2024. Fourth-quarter losses reached SAR 845.4 million.