Saudi Steel Pipe Company, commercially known as “Saudi Pipes”, announced significant growth in its annual financial results for the fiscal year 2025, with net profits increasing by 6% to reach SAR 192 million, compared to SAR 181 million recorded in the previous fiscal year 2024. This positive performance reflects the strength of the company’s financial position and its ability to achieve sustainable growth in a changing economic environment.
Financial performance details and reasons for growth
According to the official statement published on the Saudi Stock Exchange (Tadawul), the increase in net profit is primarily due to several key factors. First, the company recorded a non-recurring revenue of SAR 54 million from a land compensation settlement during fiscal year 2025. Additionally, the company experienced an increase in "other income" and a significant decrease in financing expenses, mainly due to a reduction in the company's outstanding loans, which eased debt servicing costs and boosted net income.
The financial statements also showed a significant improvement in the debt structure, with net debt decreasing sharply from SAR 363 million at the end of 2024 to only SAR 34 million at the end of 2025. This decrease is a strong indicator of the efficiency of the company's financial management, especially since it was achieved despite the distribution of cash dividends to shareholders totaling SAR 200 million during the same year.
General context and the company's role in the Saudi economy
Established in 1980, Saudi Steel Pipe Company is now one of the leading manufacturers and suppliers of welded steel pipes in the Middle East. The company plays a vital role in supporting the Kingdom's strategic sectors, including oil and gas, water, and construction. As a trusted supplier to major national companies such as Saudi Aramco, Saudi Steel Pipe directly contributes to enhancing local content and supporting industrial supply chains, aligning with the goals of Saudi Vision 2030 to diversify the national economy and strengthen local industrial capabilities.
Importance and future impact
This profit growth reinforces investor confidence in the company's performance and its ability to adapt to market demands. Domestically, this success underscores the resilience of the Saudi industrial sector and its capacity for growth beyond oil. Regionally, Saudi Pipes' strong financial performance strengthens its competitive position as a key pipe supplier for major projects in the region. The company is expected to continue capitalizing on the momentum of the Kingdom's mega-projects, opening up significant opportunities for growth and expanding its market share in the future.
