Maadaniyah narrows Q3 losses as revenue rises

Saudi Arabia's National Metal Manufacturing and Casting Co. (Maadaniyah) narrowed its net loss in the third quarter as revenue increased and margins improved.

Revenue rose 13.2 pct YoY to SAR 52.3 mln (USD 13.9 mln) in Q3 2026. The company reported a net loss of SAR 1.69 mln (USD 451,000), compared with a net loss of SAR 5.64 mln in Q3 2025. The loss also narrowed from SAR 2 mln in the previous quarter.

The improvement was supported by higher average selling prices for certain products, an improved sales mix for casting products, lower administrative expenses and finance costs, as well as higher other income. The company, however, recorded an impairment loss of SAR 2.92 mln (USD 779,000) on non-financial assets.

Revenue increased 33.5 pct from the previous quarter, supported mainly by a 44 pct increase in sales of drawn wire and related products as sales volumes rose by around 45 pct. Sales of axles and spare parts also improved, while casting product sales declined due to lower demand from the mining sector.

During the first nine months of 2026, revenue declined 21.7 pct YoY to SAR 141.05 mln (USD 37.6 mln). However, the net loss narrowed 34.2 pct to SAR 9.37 mln (USD 2.5 mln).

The company attributed the decline in nine-month revenue mainly to lower sales of drawn wire and related products, as well as axles and spare parts, following delays in the arrival of imported raw materials and shortages of finished goods. Sales of casting products increased by around 4 pct due to an improved sales mix.

The company cited weak demand in local and export markets, competition from Chinese imports, volatility in high-carbon steel prices and delays in imported raw material shipments as factors contributing to its accumulated losses. The shipment delays were partly linked to geopolitical disruptions that required cargoes to be rerouted to Jeddah from Dammam.

Separately, Maadaniyah agreed with IGL Group Ltd. to cancel a planned aluminium foundry project due to a lack of progress in its implementation. The project, which was to be developed through Vair National Metal Casting Co., had been under development since the companies signed an MoU in February 2021. Cancellation costs amount to SAR 1.2 mln (USD 0.3 mln) and reflect an impairment of non-financial assets. The parties have no outstanding obligations, while the relevant licences and commercial registration will be cancelled.

Maadaniyah operates several manufacturing facilities, including wire drawing, metal casting, axle production, and machining and fabrication plants located in Jubail and Dammam. The company also operates a facility within King Salman Energy Park (SPARK), specializing in the production of industrial valves and related accessories for the oil and gas, water, and petrochemical sectors across the region.

1 USD / 3.75 SAR