Southern Cement shareholders approved a 2.5% cash dividend for H2 2025, or SAR 0.25 per share. The payout comes as Saudi construction demand lifts cement sector earnings.
Alpha Score of 46 reflects weak overall profile with moderate momentum, poor value, weak quality, weak sentiment.
Southern Cement shareholders approved a 2.5% cash dividend for the second half of 2025 at the company's general assembly meeting. The payout, equivalent to SAR 0.25 per share, covers the period from July through December 2025.
The dividend approval comes as Southern Cement navigates a regional construction cycle that has boosted demand across Saudi Arabia's cement sector. The company's production capacity and distribution network position it to capture volume growth tied to major infrastructure projects under Vision 2030.
Southern Cement operates four production lines with a combined annual capacity of 5.3 million tons. The company reported net income of SAR 187 million for the first nine months of 2025, up from SAR 162 million in the same period a year earlier. Revenue rose 8% to SAR 612 million, driven by higher sales volumes and stable pricing in the domestic market.
The dividend represents a payout ratio of roughly 45% of H2 2025 earnings, consistent with the company's historical distribution policy. Southern Cement has paid a dividend every year since 2010, with the payout fluctuating between 1.5% and 4% depending on earnings and capital expenditure needs.
Saudi cement stocks have rallied this year on expectations of sustained government spending on housing, transport, and utilities. The sector index is up 12% year-to-date, outperforming the broader Tadawul All Share Index. Southern Cement shares trade at a price-to-earnings multiple of 14.2x trailing earnings, in line with the sector average.
The company faces headwinds from rising fuel and electricity costs, which account for about 30% of production expenses. Southern Cement has partially offset these through efficiency improvements and a shift toward alternative fuels at its plants.
Southern Cement's Alpha Score stands at 46 out of 100, a Mixed rating reflecting balanced fundamentals. The stock page is available at SO stock page.
Dividend payment is scheduled for January 2026, with the ex-dividend date to be announced by the company's board.
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