Build Station CEO expects bullish performance in Q1 despite seasonality, geopolitical challenges

He added that Build Station has a flexible business model and a strong brand, which supports results and enables gradual improvement in performance in the coming period.

The company mitigated the impact of geopolitical challenges thanks to its strong financial position, with high liquidity and stable cash flows, enabling it to avoid reliance on external financing and exposure to rising borrowing costs.

The diversification of supply sources and the company’s footprint across Saudi Arabia, the UAE, and Qatar has strengthened supply chain resilience and reduced operational risks.

The Tadawul-listed company continues to adopt prudent hedging policies, including maintaining adequate provisions to ensure sustainability and protect shareholder interests.

Regarding the company’s Q4 2025 results, the CEO said the profit decline was due to a combination of factors, despite a limited drop in revenues, noting that sales fell by 3% year-on-year (YoY), alongside an increase in cost of goods sold.

Profit margins still reflect solid operational performance over the full year, as the company recorded a 2.6% increase in sales, in addition to improved operational cost efficiency, with marketing and administrative expenses declining by 2.5%.

The product portfolio diversification, which includes more than 13 owned brands, provides the company with significant flexibility in managing sales mix and pricing, reducing the impact of competition or demand fluctuations on profit margins.

Algfari said demand remained stable throughout 2025, with no significant decline recorded in Q4, while some segments performed strongly, with the wholesale and projects segment growing by 31%. In addition, subsidiaries achieved notable growth, particularly in the UAE, where growth reached 36%.

Despite limited slowdown in some categories, the outlook remains positive, supported by the company’s ability to boost sales and expand distribution channels, the CEO noted.

The company’s 2025 net earnings declined 9% to SAR 50.5 million, compared to SAR 55.5 million in 2024, while Q4 net profit dropped by about 68% YoY to SAR 5.1 million, according to Argaam data.