CGS profit falls 39% to SAR 9.2M in Q1 2025/26

Consolidated Grünenfelder Saady Holding Co. (CGS), which is preparing for an IPO on TASI, reported a 39% drop in net profit to SAR 9.2 million in the first quarter ended June 30, 2025, from SAR 15.1 million in the same period a year earlier.

The decline was driven by a 15% decrease in revenue to about SAR 88.2 million, compared with SAR 103.5 million a year earlier, mainly due to lower sales in the specialized solutions and automotive solutions segments.

CGS said it maintained balanced performance in the contracting and services segments, both of which recorded growth and helped offset the overall revenue decline.

Gross profit margin fell to 24% from 26% in the comparative period. Meanwhile, a 15% increase in general and administrative expenses, along with the recognition of an expected credit loss provision, led to a 40% decline in operating profit, driving the operating margin down to 11% from 16% a year earlier.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 35% to about SAR 11.7 million, compared with SAR 17.9 million in Q1 2024/25.

The company also reported higher financing costs and an expected credit loss provision in the nine-month period, compared with none a year earlier. Other income increased, while Zakat and income tax expenses declined.

Sequentially, net profit fell 45.8% from SAR 17.01 million in Q4 2024/25.

Total shareholders’ equity, no minority interest, stood at SAR 161.9 million as of June 30, 2025, an increase from SAR 135.3 million a year earlier.

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