Net profit attributable to shareholders of Riyadh Cables Group Company increased by 11.9 percent during the first nine months of 2026, to reach 913.9 million riyals ($243.7 million), compared to 817 million riyals ($217.9 million) in the same period last year, supported by the diversity of products sold, according to the preliminary financial results announced by the company on the Saudi Stock Exchange website.
The company's revenues grew during the period by 12.5 percent to 8.93 billion riyals ($2.38 billion), compared to 7.94 billion riyals ($2.12 billion) in the first nine months of 2025. The company attributed the revenue growth to the rise in prices of raw materials and the increase in quantities sold.
Operating profit increased by 12.8 percent to 1.07 billion riyals ($285.7 million), compared to about 949.8 million riyals ($253.3 million) in the same period of the previous year. Total profit also increased by 4.7 percent to 1.38 billion riyals ($367.5 million), compared to 1.32 billion riyals ($351.1 million).
In the third quarter of the year, net profit increased by 15.5 percent to 325.1 million riyals ($86.7 million), compared to 281.5 million riyals ($75.1 million) in the same quarter of 2025. It also increased by 6 percent compared to the second quarter of the current year, in which the company recorded profits amounting to 306.8 million riyals ($81.8 million).
The company's revenues in the third quarter rose by 18.2 percent year-on-year to 3.23 billion riyals ($860.9 million), compared to 2.73 billion riyals ($728.4 million) in the corresponding period last year. It also increased by 10.2 percent compared to the previous quarter.
The company attributed the growth in revenues during the third quarter to the rise in prices of raw materials, in addition to the diversity of products sold, while it attributed the increase in net profit to the diversity of products.
Operating profit in the third quarter increased by 20.6 percent to 401.8 million riyals ($107.1 million), compared to 333.2 million riyals ($88.8 million) in the same quarter of the previous year. Total profit also increased by 13.9 percent to 508.2 million riyals ($135.5 million), compared to 446.3 million riyals ($118.9 million).
The total comprehensive income attributable to the company’s shareholders amounted to 953.6 million riyals ($254.3 million) during the first nine months of the year, an increase of 8.7 percent over the same period last year, while total ownership rights, after excluding non-controlling interests, increased to 3.48 billion riyals ($927.2 million), compared to 2.91 billion riyals ($775.8 million) a year ago.
Earnings per share during the period recorded 6.09 riyals, compared to 5.46 riyals in the same period in 2025.
The extraordinary general assembly of Addis Holding Company approved an increase in the company's capital by 100 percent, from about 1.13 billion riyals ($301.1 million) to 2.26 billion riyals ($602.2 million), by capitalizing an amount of 1.13 billion riyals ($301.1 million) from the balance of the share premium, and granting one share for every share owned.
The company announced, in a disclosure on the Saudi Stock Exchange website, that the Extraordinary General Assembly approved the recommendation of the Board of Directors during its meeting held on Wednesday, after a quorum was completed, with an attendance rate of 76.75 percent.
According to the company, the increase aims to support the long-term growth strategy, strengthen the capital base and strengthen the property rights structure, in a way that supports future growth and expansion plans.
Under the decision, the number of shares will increase from about 1.13 billion shares to 2.26 billion shares, with one free share distributed for every share owned by shareholders eligible for the grant. Eligibility is for shareholders who own shares at the end of the day of the extraordinary general assembly, and who are registered in the company’s shareholder registry with the Securities Depository Center Company “Edaa” at the end of the second trading day following the entitlement date.
The company explained that if there are fractional shares, they will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the eligible shareholders, each according to their share, within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.
The decision to increase the capital was approved by 99.82 percent of the votes, while the percentage of disapproval votes was 0.0033 percent, and the abstaining votes were approximately 0.18 percent.
The Assembly also approved the amendment of Articles Seven and Eight of the company’s bylaws, which relate to capital and subscription to shares, in addition to amending Article 20, which relates to the powers of the president, his deputy, the managing director, and the secretary.
This step comes within the framework of strengthening the company's capital base and supporting its expansion plans, in accordance with the goals announced by Addis in the recommendation of its board of directors.
Saudi Cable Company’s revenues declined by 39.7 percent during the first nine months of 2026, to reach 68.3 million riyals ($18.2 million), compared to 113.3 million riyals ($30.2 million) in the same period last year, while net profit decreased by 56.4 percent to 44.4 million riyals ($11.8 million), compared to about 101.7 million riyals ($27.1 million). A year ago.
The company explained, in a disclosure to the Saudi financial market, that the decline in revenues is related to financial challenges, liquidity problems, and continued restrictions on working capital, in addition to the decrease in payments made by customers, which affected its ability to carry out business and generate revenues.
In the third quarter of the year, revenues decreased to about 20 million riyals ($5.3 million), compared to 39 million riyals ($10.4 million) in the same quarter of 2025, a decline of 48.8 percent.
Net profit attributable to the company's shareholders also declined during the third quarter to 18.3 million riyals ($4.9 million), compared to 36.8 million riyals ($9.8 million) in the corresponding period of the previous year, a decrease of about 50.3 percent.
In terms of operational performance, the company recorded an operating loss amounting to 84 million riyals ($22.4 million) during the first nine months, compared to a loss of 75.9 million riyals ($20.3 million) in the same period last year, an increase of 10.6 percent. The total loss amounted to 24 million riyals ($6.4 million), compared to 24.9 million riyals ($6.6 million) a year ago.
The company attributed the decline in profitability to a decrease in revenues and an increase in total costs, especially the prices of raw materials, as well as an increase in operating expenses. She added that regional geopolitical conditions increased challenges associated with transportation and logistics services, and raised unabsorbed industrial burdens at the factory.
The company also indicated a decline in revenues resulting from contracts during the third quarter compared to the previous quarter, with a decrease in the level of completion in customer contracts, after the company received cable supplies for projects during the second quarter, while supplies decreased during the third quarter. In contrast, cable revenues increased by 21 percent compared to the previous quarter, which partly contributed to limiting the decline.
Despite the decline in net profit during the nine months, the company's financial position still faces major challenges. The accumulated losses amounted to 227 million riyals ($60.5 million), equivalent to 340 percent of the capital.
Current liabilities also exceeded current assets by about 671.4 million riyals ($179 million) on September 30, 2026, according to the auditor’s report, which pointed out that there is fundamental doubt about the group’s ability to continue as a going concern and fulfill its obligations when they fall due.
On the other hand, the management said that it had prepared forecasts for the current year indicating achieving net income, based on assumptions that include injecting liquidity through the issuance of priority rights instruments, and revenue growth based on future requests and offers. However, the auditor indicated that these assumptions relate to future events that involve significant uncertainty, stressing that his opinion on the financial statements will not be modified.
This comes at a time when the company returned to the financial reorganization procedure, after the Fifth Circuit of the Court of Appeal in Riyadh, on August 26, 2026, issued a ruling overturning a previous decision to terminate the procedure and rejecting the termination request, according to what was stated in the company’s disclosure.
The results reflect continued pressure on the company's business, with declining revenues and worsening operating losses, at a time when management's plans to improve the financial situation depend on providing additional liquidity and restoring business growth during the coming period.
