Saudi Arabia-based Watani Iron Steel Co. (Watani Steel) reported lower net profit for the first quarter of 2026, as lower steel selling prices continued to pressure profitability despite relatively stable sales revenue.
The company’s sales revenue increased marginally by 0.3pct YoY to SAR 119.9 mln (USD 32 mln) during the quarter. Gross profit declined by 5.3pct to SAR 8.1 mln (USD 2.1 mln), while operating profit decreased by 27.1pct to SAR 3 mln (USD 0.8 mln).
Net profit attributable to shareholders declined by 17.3pct YoY to SAR 2.4 mln (USD 0.63 mln), compared to SAR 2.9 mln recorded in the corresponding quarter of 2025.
According to the company, higher sales volumes during the quarter were supported by stronger demand in the first quarter of 2026. However, profitability was affected as the decline in average selling prices for finished steel products exceeded the reduction in production costs. Higher general, selling, marketing, and financing expenses also weighed on earnings.
Founded in 2008 and converted into a closed joint-stock company in 2020, Watani Steel has been listed on the Nomu Parallel Market since February 2021. The company has annual production capacity of 280,000 tons of billet and 320,000 tons of rebar.
1 USD / 3.75 SAR