- 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.
Key Performance Indicators
Revenue
Increasing
190.89M
QoQ: 100.00% | YoY: 88.06%
Gross Profit
Increasing
68.80M
36.04% margin
QoQ: 100.00% | YoY: 63.98%
Operating Income
Increasing
59.90M
QoQ: 100.00% | YoY: 60.53%
Net Income
Increasing
57.47M
QoQ: 100.00% | YoY: 21.52%
EPS
Increasing
0.48
QoQ: 100.00% | YoY: 21.52%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: SAR 190.89 million; YoY: 0.00? (data shows reported YoY of +88.06% in the dataset, but the numeric quarterly change from Q1 to Q2 2025 suggests a QoQ decline). QoQ revenue change: -15.3% (Q1 2025 SAR 225.23m to QQ2 2025 SAR 190.89m).
Gross Profit: SAR 68.80 million; Gross Margin: 36.04%
EBITDA: SAR 89.03 million; EBITDA Margin: 46.64%
Operating Income: SAR 59.90 million; Operating Margin: 31.38%
Net Income: SAR 57.47 million; Net Margin: 30.08%
EPS: SAR 0.48; Diluted EPS: SAR 0.48; Shares outstanding: 120.0 million
Balance Sheet Highlights:
- Cash & cash equivalents: SAR 69.57 million; Short-term investments: SAR 61.17 million; Total cash & short-term investments: SAR 130.75 million
- Total current assets: SAR 706.60 million; Total assets: SAR 1,941.15 million
- PPE net: SAR 1,234.55 million; Total liabilities: SAR 178.31 million; Total equity: SAR 1,762.83 million
Liquidity & Leverage:
- Current ratio: 4.97x; Quick ratio: 2.70x; Cash ratio: 0.49x
- Total debt: SAR 4.03 million; Net debt: SAR -65.55 million (dataset shows inconsistency with cash balance; main takeaway is substantial net cash coverage)
- ROA: 5.92%; ROE: 6.52%; ROCE: 6.66%
- CCC: ~167.5 days (DSO ~56 days; DIO ~119 days; DPO ~7 days) indicating longer inventory cycle common in cement, partially offset by favorable cash generation
Valuation & Market Perception:
- Price to earnings: ~ SAR 8.38x; Price to book: ~ SAR 2.19x; Price to sales: ~ SAR 10.10x
- Dividend yield: ~3.89%; Dividend payout ratio reported as ~130.5% (data inconsistency; validates need for dividend sustainability review)
- Enterprise value multiple: ~ SAR 21.28x; Price fair value indicator: ~ SAR 2.19
Operational Insight:
- Revenue and profitability generated amid stable demand in key Saudi markets and ongoing infrastructure activity; margins remain a relative strength versus peers in the region.
- Free cash flow per share negative (~SAR -0.136) despite strong EBITDA, underscoring capex intensity or working capital needs.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
190.89M
88.06%
100.00%
Gross Profit
68.80M
63.98%
100.00%
Operating Income
59.90M
60.53%
100.00%
Net Income
57.47M
21.52%
100.00%
EPS
0.48
21.52%
100.00%
Key Financial Ratios
Gross Profit Margin
Fair
36.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Excellent
31.40%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
30.10%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.92%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
6.52%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
4.97
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
8.38x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.19x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.
Riyadh Cement Company (9512.SR) QQ4 2024 Results Review — Strong profitability, healthy liquidity, and resilient cash flow in the Saudi construction...
Riyadh Cement Company (9512.SR) QQ3 2024 Earnings Analysis: Revenue Momentum, Margin Expansion, and Net Cash Strength in Saudi Construction Materials...