me Highlights

• Saudi Steel Pipe Co. reported a net profit of SR192 million ($51.19 million) in 2025, up 6.08% from 2024, driven by land settlement compensation, lower finance costs, and reduced borrowings.
• The company strengthened its balance sheet with free cash flow rising to SR325 million and net debt dropping to SR34 million, even after distributing SR200 million in dividends.

Key Facts

• Despite a revenue dip to SR1.41 billion, the company maintained solid earnings performance, demonstrating resilience in a challenging market.
• Its subsidiary, Global Pipe Co., secured an SR300 million offshore contract with Subsea 7 Saudi Arabia, set to further enhance earnings in Q4 2026.

Background

Saudi Steel Pipe Co. reported a net profit of SR192 million ($51.19 million) for 2025, marking a 6.08 percent increase from the previous year, even as revenue declined and margins tightened.

In a filing to Tadawul, the company said the profit growth came mainly from SR54 million in land settlement compensation, lower finance costs and reduced borrowings.

Revenue dropped 13.37 percent year on year to SR1.41 billion, while earnings before interest, tax, depreciation, and amortization fell to SR340 million from SR388 million in 2024, reflecting pressure on operating performance.

The company improved its balance sheet even though revenue fell. Its free cash flow rose to SR325 million in 2025, excluding the land settlement, compared with a loss of SR5 million in 2024. Net debt declined sharply to SR34 million from SR363 million, even after distributing SR200 million in dividends.

Saudi Steel Pipe said improved working capital management supported cash generation and helped reduce leverage.

In January, its subsidiary Global Pipe Co. signed an SR300 million contract with Subsea 7 Saudi Arabia to supply line pipes for an offshore redevelopment project. The 11-month contract should boost earnings in the fourth quarter of 2026.

The wider Saudi steel sector saw mixed results in 2025. Strong demand from Vision 2030 megaprojects such as NEOM and ROSHN supported volumes, but companies faced margin pressure due to volatile raw material prices and rising competition. The Basic Materials index declined about 11 percent over the year, according to Argaam.

Peer performance varied. Al Yamamah Steel Industries Co. sharply increased its quarterly profit thanks to sales in renewable energy and power. Molan Steel Co widened its losses in the first half, while Riyadh Steel Co. slightly dropped its six-month profit.

Industry outlook remains positive. The Saudi pipes market, valued at $3.28 billion in 2024, is projected to reach $5.61 billion by 2034, supported by demand for insulated and durable pipes, especially for district cooling systems in large urban developments.