- Riyadh Cement reported QQ2 2025 revenue of SAR 190.89 million, with gross profit of SAR 68.80 million and EBITDA of SAR 89.03 million. Operating income stood at SAR 59.90 million and net income at SAR 57.47 million, yielding an EBITDA margin of 46.6%, an operating margin of 31.4%, and a net margin of 30.1%. These metrics reflect a high-margin quarter within a relatively stable cement pricing environment.
- The balance sheet demonstrates strong liquidity and a robust equity base. Cash and short-term investments totaled SAR 130.75 million, current assets SAR 706.60 million, and total assets SAR 1.941 billion. Equity stood at SAR 1.762 billion, with a reported total debt of SAR 4.03 million and a net cash position that appears favorable on the surface. Note: there are inconsistencies in the debt/net debt presentation in the dataset; the cash balance and short-term investments imply a materially net cash stance.
- Cash flow reflects substantial operating cash flow per share (SAR 0.652) and a negative per-share free cash flow (-SAR 0.136), suggesting that near-term capex or working capital needs may be consuming free cash flow despite attractive operating cash generation. This is important for assessing dividend sustainability and growth capex runway.
- Relative valuation appears favorable versus a subset of Saudi cement peers, with a price/earnings of ~SAR 8.4x and price/book ~2.19x, implying a modestly de-risked, cash-generative profile in a sector that benefits from Saudi infrastructure investment. However, the lack of explicit forward guidance and potential sector cyclicality warrant cautious optimism.