‎SENAAT CEO: Iron, insulation segments key drivers of Q4 profit

‎SENAAT CEO: Iron, insulation segments key drivers of Q4 profit ‎SENAAT CEO: Iron, insulation segments key drivers of Q4 profit

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Ahmed Zaatari, CEO of Advanced Building Industries Co. (SENAAT), said the net profit growth during Q4 2025 was driven by the strong performance of the iron, insulation materials, and HVAC segments, all of which achieved strong growth in 2025.

Meanwhile, the 9.1% decline in consolidated revenue reflects the transitional phase in the construction segment following the completion of several major projects during the first half of the year, Zaatari toldArgaam.

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He added that the increase in net profit despite lower revenue highlights the company’s success in enhancing profitability and maintaining strict cost discipline over operating expenses.

Zaatari noted that the iron and insulation materials segments were the key contributors to Q4 2025 earnings, as reflected in the notable year-on-year (YoY) margin expansion. Operating margins improved by around 400 and 570 basis points, respectively, compared to Q4 2024.

He explained that the iron segment’s performance was supported by factory automation and strategic procurement. Automation initiatives reached full operational capacity during Q4 2025, boosting operational efficiency.

Additionally, the strategic procurement program—particularly arrangements with hot-rolled steel suppliers—enabled the company to secure input costs below initial estimates set at the time of booking sales. This contributed to a 290-basis-point expansion in operating margin compared to Q3 2025.

As for the insulation materials segment, its growth in sales and operating profit was driven by two main factors. The first was strategic restructuring, including the successful integration of BCOMS (insulated panels), which was transferred from the iron segment in early 2025. The second was organic growth, supported by solid performance and volume growth in the company’s subsidiaries—Arabian Fiberglass Insulation Co. Ltd. (AFICO) and Saudi Rock Wool Factory (SRWF)—throughout the year.

The CEO expects that the positive momentum in revenue and profit achieved in late 2025 continued into Q1 2026, supported by the ongoing strong performance of the iron and insulation segments.

Zaatari added that the company continues to monitor global delivery timelines and pricing trends, while its backlog and available inventory provide a stable outlook, with no expectation of major disruptions in Q1 2026. The company also maintains flexibility to adapt to any potential market changes throughout the rest of the year.

The top executive further noted that Zamil Steel Vietnam is witnessing a noticeable recovery following operational integration, while the HVAC segment is expected to achieve YoY revenue growth. He emphasized that the group is well-positioned to deliver sustainable and profitable growth in Q1 2026.

Zaatari confirmed that the company did not experience any significant supply chain disruptions during Q4 2025 that could impact project execution, input costs, or margins. The company maintained sufficient inventory levels of key imported materials and continued to manage procurement proactively.

SENAAT reported a net profit of SAR 101 million by the end of 2025, compared to SAR 26.8 million during the same period in 2024, according to Argaam data.

 

Ahmed Zaatari, CEO of Advanced Building Industries Co. (SENAAT), said the net profit growth during Q4 2025 was driven by the strong performance of the iron, insulation materials, and HVAC segments, all of which achieved strong growth in 2025.

Meanwhile, the 9.1% decline in consolidated revenue reflects the transitional phase in the construction segment following the completion of several major projects during the first half of the year, Zaatari toldArgaam.

He added that the increase in net profit despite lower revenue highlights the company’s success in enhancing profitability and maintaining strict cost discipline over operating expenses.

Zaatari noted that the iron and insulation materials segments were the key contributors to Q4 2025 earnings, as reflected in the notable year-on-year (YoY) margin expansion. Operating margins improved by around 400 and 570 basis points, respectively, compared to Q4 2024.

He explained that the iron segment’s performance was supported by factory automation and strategic procurement. Automation initiatives reached full operational capacity during Q4 2025, boosting operational efficiency.

Additionally, the strategic procurement program—particularly arrangements with hot-rolled steel suppliers—enabled the company to secure input costs below initial estimates set at the time of booking sales. This contributed to a 290-basis-point expansion in operating margin compared to Q3 2025.

As for the insulation materials segment, its growth in sales and operating profit was driven by two main factors. The first was strategic restructuring, including the successful integration of BCOMS (insulated panels), which was transferred from the iron segment in early 2025. The second was organic growth, supported by solid performance and volume growth in the company’s subsidiaries—Arabian Fiberglass Insulation Co. Ltd. (AFICO) and Saudi Rock Wool Factory (SRWF)—throughout the year.

The CEO expects that the positive momentum in revenue and profit achieved in late 2025 continued into Q1 2026, supported by the ongoing strong performance of the iron and insulation segments.

Zaatari added that the company continues to monitor global delivery timelines and pricing trends, while its backlog and available inventory provide a stable outlook, with no expectation of major disruptions in Q1 2026. The company also maintains flexibility to adapt to any potential market changes throughout the rest of the year.

The top executive further noted that Zamil Steel Vietnam is witnessing a noticeable recovery following operational integration, while the HVAC segment is expected to achieve YoY revenue growth. He emphasized that the group is well-positioned to deliver sustainable and profitable growth in Q1 2026.

Zaatari confirmed that the company did not experience any significant supply chain disruptions during Q4 2025 that could impact project execution, input costs, or margins. The company maintained sufficient inventory levels of key imported materials and continued to manage procurement proactively.

SENAAT reported a net profit of SAR 101 million by the end of 2025, compared to SAR 26.8 million during the same period in 2024, according to Argaam data.

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