Saudi Arabia-based Molan Steel Company reported lower revenue and wider losses for the year ended 31 December 2025, according to a filing on the Saudi Exchange.
Revenue declined by 29.4pct YoY to SAR 60.9 mln (USD 16.2 mln), compared with SAR 86.4 mln in 2024, reflecting reduced sales activity amid liquidity constraints linked to an acquisition.
The company posted a net loss of SAR 21.8 mln (USD 5.81 mln), widening from a loss of SAR 7.1 mln a year earlier.
Molan Steel attributed the weaker performance to lower sales, alongside goodwill impairment of SAR 8.5 mln (USD 2.2 mln) and expected credit loss provisions of SAR 3 mln (USD 0.8 mln) related to the acquisition. Higher finance costs, including sukuk-related expenses, and increased depreciation following asset revaluation also weighed on earnings.
The acquisition relates to Mayar International, which was the subject of a dispute with Yara International. The parties reached a final settlement in March 2026, resolving claims and lifting restrictions on the company’s bank accounts, which is expected to support financial stability.
The auditor highlighted a material uncertainty regarding the company’s ability to continue as a going concern, citing accumulated losses and a working capital deficit. The company said its continuity depends on completing a planned rights issue in 2026.
In a separate filing, the company’s board appointed Majed Al-Odhaibi as managing director effective 29 April, transitioning from vice chairman to an executive role.
Molan Steel supplies steel products for the construction and fabrication sectors across the Middle East.
1 USD / 3.75 SAR