Riyadh Cement CEO expects 5% demand drop in Q1 2026 on seasonal factors

Demand increased 6% during the fourth quarter, supported by infrastructure and major projects since the start of the year, Al Ayed said, adding that the average selling price per ton reached SAR 177 for black cement and SAR 430 for white cement. The decline in Riyadh Cement’s 2025 earnings was driven by the volatility of the black cement selling prices in Q3, which fell 11% despite a 7% increase in sales volumes, the CEO said. He also cited the increase in fuel prices since the start of 2025, which raised production costs by around 10–11%.

Profit margins were affected by lower black cement prices due to competition in the central region, higher fuel prices, and increased clinker inventories among sector companies.

Black cement sales reached about one million tons in Q4 2025, up 25% from the previous quarter, compared with 10% growth for the sector. The company’s clinker production rose 32%, versus 10% for the sector. Riyadh Cement recorded a clinker inventory of 1.3 million tons and a cement inventory of 50,000 tons.

Riyadh Cement reported a decline in net profit to SAR 207.8 million in 2025, compared to SAR 310.4 million a year earlier. Q4 2025 net earnings fell by more than 26% year-on-year (YoY) to SAR 59.92 million.