Riyadh Cement Company (9512.SR) Q1 2025 Earnings Report

Riyadh Cement Company delivered a solid QQ1 2025 performance with revenue of SAR 225.23 million, yielding a gross profit of SAR 85.85 million and a net income of SAR 75.68 million (EPS SAR 0.63). The quarter marks continued profitability resilience, supported by a robust gross margin of 38.1% and an EBITDA margin of ~49.0%, culminating in a net income margin of 33.6%. Year-over-year revenue growth reached ~19.2%, while net income rose about 7.96% on a YoY basis, though QoQ metrics show a softer environment with revenue and profitability dipping as the prior quarter closed at higher activity levels. Management commentary is not included in the provided transcript data; consequently, the assessment relies on disclosed financials and industry context.

The balance sheet shows a strong liquidity position and a net cash balance (net debt of SAR -228.69m) alongside substantial cash and equivalents (SAR 232.70m) and short-term investments (SAR 56.22m). Operating cash flow stood at SAR 86.34m in the quarter, with capital expenditures of SAR 32.40m and free cash flow of SAR 53.94m, underpinning financial flexibility to fund capex, working capital needs, or potential strategic opportunities.

In a cyclical cement sector driven by Saudi infrastructure and housing initiatives, Riyadh Cement’s QQ1 2025 results reflect a favorable margin structure and disciplined capital management. The operating and net margins, together with a healthy current ratio (5.24) and quick ratio (3.41), position the company to navigate near-term volatility. However, the cash conversion cycle is extended (about 269.6 days), highlighting working capital intensity tied to inventory buildup and receivables timing typical of cement players. Looking ahead, the key drivers will be the pace of domestic demand recovery, commodity input costs, and any shifts in government capex allocation. Given the current multiples (P/E ~14.7x, P/B ~2.4x) and the company’s strong liquidity, the stock presents a cautiously constructive stance for investors with a preference for defensively positioned, cash-generative cement players in Saudi Arabia.