The Saudi Stock Exchange (Tadawul) witnessed a significant announcement reflecting the strength of the basic industries sector, with Riyadh Cables a substantial jump in profits during the 2025 fiscal year. Riyadh Cables Group announced a remarkable 32.3% increase in net profit, reaching SAR 1.08 billion, compared to SAR 816.7 million in the previous year, 2024. This growth reflects the company's strong operational performance and its ability to adapt to increasing market demands.
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul) website, this record increase is primarily due to a significant growth in sales revenue. This growth was not solely driven by increased sales volume, but also by a successful strategy of diversifying the products sold, enabling the company to meet the needs of a wider range of customers across various industrial and construction sectors, thereby boosting profit margins.
Historical context and position of the Riyadh Cables Group
Riyadh Cables Group is one of the oldest and largest manufacturers of cables and wires in the Middle East. Since its establishment in 1984, the company has continuously strived to expand its production capacity and develop its technologies to meet the latest global standards. This long history of experience has contributed to building a trusted brand relied upon by major projects. The company's ability to maintain a steady growth trajectory for decades underscores the robustness of its business model and the astute management of its executive team in navigating various economic cycles.
The economic impact of Riyadh Cables' profit growth locally and regionally
This financial growth carries significant economic implications that extend far beyond the company. Domestically, this strong performance coincides with the urban development and massive infrastructure projects underway in Saudi Arabia as part of Vision 2030, such as NEOM, the Red Sea Project, and Qiddiya, which require enormous quantities of cables and advanced electrical solutions. Regionally and internationally, the company's enhanced financial strength supports its expansion plans to increase exports to neighboring and global markets, thereby strengthening the global standing of Saudi industry and contributing to the diversification of national income sources away from oil.
Board of Directors' decisions and cash dividend distributions
In a related development, and in light of its outstanding financial performance, the Board of Directors of Riyadh Cables Group, at its meeting last Thursday, recommended a generous cash dividend distribution to shareholders for the second half of 2025. The company stated that the total amount allocated for distribution is approximately SAR 336.8 million. Accordingly, the dividend per share will be SAR 2.25, reflecting management's commitment to sharing the company's financial successes with shareholders and providing attractive investment returns.
Regarding the eligibility details, the company clarified that the entitlement date will be for shareholders who own shares and are registered in the company's shareholder register at the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the General Assembly meeting. The date of the General Assembly meeting and the date and mechanism for distributing dividends will be announced later, after the completion of the applicable regulatory procedures.
