CGS Backlog Surges 58% to SAR 300M, CEO Says

Consolidated Grunenfelder Saady Holding Co. (CGS) closed its fiscal year with a SAR 300 million order backlog, Chief Executive Ruban Deep Singh Bilen said Wednesday. The figure marks a 58% jump from SAR 190 million a year earlier.

The backlog represents contracted work not yet delivered. A 58% expansion reduces the risk of a revenue drop-off in the coming quarters, even if the company books no major new contracts in the near term. Bilen attributed the rise to sustained client demand and an aggressive bid pipeline. He gave no breakdown by segment or geography.

The increase of SAR 110 million on the year is the largest nominal gain CGS has recorded in at least three fiscal periods, according to historical figures released by the company. The order book now covers approximately nine months of average quarterly revenue based on the company's recent run rate, Bilen said.

Full-year financial statements, including revenue and profit figures, are due later this quarter. The backlog metric offers a preview of the top-line trend, though it does not guarantee that all booked work will convert to revenue on schedule. Delays in project execution or client cancellations could alter the timeline. The CEO said the company is on track to deliver the booked work within standard lead times.

The stock has risen roughly 12% since the start of the fiscal year. Traders have been pricing in the likelihood that the backlog would show this kind of acceleration, three people familiar with the firm's investor discussions said. The full-year results will confirm whether the margin structure held stable through the period.