Riyadh Cables Group Company (4142) Earnings Call Transcripts

Riyadh Cables Group Company's Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Riyadh Cables Group Company reported record revenues of SAR 2.8 billion, reflecting an 11% year-over-year increase, driven by strong demand across core segments. Net profit rose by 10% to SAR 282 million, slightly exceeding internal expectations. Management maintained its guidance for a 10% increase in net profit for the full fiscal year, targeting approximately SAR 1.2 billion, despite ongoing geopolitical challenges.

Reported metrics

Guidance from management

Management expects a 10% increase in net profit for 2026, targeting approximately SAR 1.2 billion, assuming no material escalation in geopolitical tensions or supply chain disruptions.

What management said

Thank you, EFG team. Ladies and gentlemen, thank you for attending Riyadh Cables' Q1 '26 earnings call. Today, as usual, we will provide a quick overview of the company. Then we will talk about the company's performance during first quarter. Next, we will review the financials for the same period. Afterwards, we will provide a reflection on the current regional situation. And lastly, we will discuss the management's ...

Capacity increase of 10% doesn't give you that our gross profit per ton will be increasing 10%. It just says that we are increasing the sold volume. And in absolute value, our net profit is increasing even at a higher rate than additional capacity that we are installing. The gross profit per ton is just to explain, I say, the mix of the cable that we are providing, which is at a very healthy level, one of the highes...

What analysts pressed on

Analysts expressed concerns regarding the decline in utilization rates and the implications of increased ECL charges on profitability. There were also questions about the sustainability of volume growth amid geopolitical challenges and potential delays in collections from receivables.

Main topics on the call

• Record Revenue Performance — Riyadh Cables achieved a record revenue of SAR 2.8 billion in Q1 2026, marking an 11% increase compared to Q1 2025. CEO Borjan Sehovac noted, "This performance reflects a disciplined pricing strategy despite ongoing cost...
• Strong Backlog Growth — The company reported a backlog of SAR 5.5 billion, an increase of 10% from December 2025. This backlog is seen as a strong indicator of future performance, with Sehovac stating, "These are all confirmed orders in our SAP...
• Operational Resilience Amid Geopolitical Challenges — Despite regional uncertainties, Riyadh Cables maintained stable operational performance with a utilization rate of 94%. Management emphasized that they have not experienced any significant project cancellations, indicati...
• Free Cash Flow Concerns — The company reported negative free cash flow of SAR 19 million due to increased inventory levels and working capital. CFO Bahaa Eissa noted that this was primarily due to strategic inventory positioning, stating, "This w...

Read the full Riyadh Cables Group Company transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 3 Riyadh Cables Group Company earnings call transcripts on record, spanning May 12, 2025 to May 11, 2026. Based on this history, Riyadh Cables Group Company reports semi-annually. The most recent call on file is dated May 11, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

4142

Exchange

SASE

Country

SA

Sector

Industrials

Industry

Electrical Equipment

Calls on record

3

First call

May 12, 2025

Most recent

May 11, 2026

Reporting cadence

semi-annually