Watani Iron Steel Co (9513.SR) Q4 2024 Earnings Report

Watani Iron Steel Co (9513.SR) reported Q4 2024 revenue of SAR 139.65 million, up 32.8% year-over-year, with net income of SAR 3.23 million and EPS of SAR 0.0177. EBITDA stood at SAR 9.83 million, yielding an EBITDA margin of about 7.0% and a operating margin of 3.41%. The quarterly results reflect meaningful top-line expansion versus the prior year period, underpinned by improved product mix and a contained cost base, yet gross margins remained modest at roughly 6.7%, signaling continued pricing and cost-structure pressures in a competitive Saudi steel environment.

Cash flow from operations was SAR 7.17 million, supporting a free cash flow of SAR 5.25 million after capex of SAR 1.92 million. Balance-sheet metrics show a robust asset base and a solid equity position, but liquidity metrics indicate modest short-term liquidity, with a current ratio of 0.74 and a cash ratio near 0.11. Net debt sits at SAR 52.10 million against total debt of SAR 64.16 million, implying a conservative leverage profile for the sector, though the company operates with negative working capital dynamics from a liquidity standpoint. Management commentary is not included in the provided materials; consequently, management-specific guidance and qualitative remarks are not captured in this report. Investors should monitor steel demand in Saudi Arabia, input cost volatility (especially energy and raw materials), and any capex programs that could affect balance sheet flexibility.