Tabuk Cement Q1 Profit Slumps 68.5%, Revenue Dips 7.6%

Tabuk Cement Company posted first-quarter 2026 net profit of SAR 4.10 million, a 68.55% drop from SAR 13.04 million in the same period a year earlier. The earnings release immediately resets the debate around the stock. The steep annual decline looks catastrophic at first glance. A sequential jump demands a closer look at cost structure and demand timing.

Tabuk Cement Revenue Shrinks 7.6%, Margins Under Pressure

Revenues fell 7.57% year-on-year to SAR 62.55 million from SAR 67.68 million. The profit drop far outpaced the revenue decline. The company converted less of each riyal of sales into net income. Earnings per share came in at SAR 0.05, down from SAR 0.12 a year earlier.

A simple read would treat this as a demand warning for Saudi cement. The revenue contraction, while modest, extends a trajectory already visible in the full-year numbers. Full-year 2025 net profit plunged 53.13% to SAR 37.29 million from SAR 79.56 million in 2024. The Q1 print keeps that annual trend intact, and the market will price the stock accordingly if it assumes the decline is linear.

Sequential Profit Surge Hints at Cost Reset

The better read focuses on the quarter-on-quarter swing. Net profit jumped 119.25% from Q4-25’s SAR 1.87 million, even as revenues shrank 18.86% from SAR 77.09 million. That combination–higher profit on sharply lower revenue–signals that the cost base or one-off charges in Q4 did not repeat. It could reflect lower input costs, a favourable sales mix, or the absence of year-end impairments. Without a detailed cost breakdown, the exact driver is invisible. The direction, however, is clear: the business generated more profit per riyal of revenue than it did three months ago.

This does not make the stock cheap on trailing earnings. The Q1 annualised run rate of about SAR 16.4 million sits well below the SAR 37.3 million full-year 2025 figure, and the revenue trend offers no immediate catalyst for a re-rating. The sequential profit recovery changes the risk profile for anyone holding the stock into the seasonally stronger second and third quarters.

Saudi Cement Demand and the Q2 Revenue Test

Cement demand in Saudi Arabia is tied to construction activity, which typically slows in the first quarter and accelerates as temperatures rise and project timelines tighten. The revenue decline, while not catastrophic, suggests that the order book or pricing power has softened relative to the prior year. For a company like Tabuk Cement, which operates in the northwestern region, project awards linked to NEOM and other giga-projects are the obvious swing factor. The Q1 numbers do not yet show a volume lift from those programmes.

The Q2 revenue print becomes the next concrete marker. A year-on-year revenue stabilisation would validate the cost reset and shift the debate to volume growth. A further decline would test whether the margin improvement can hold. For broader commodities analysis, see AlphaScala’s commodities analysis.