Riyadh – Mubasher: Arabian Cement Company reported weaker-than-expected financial results for the second quarter (Q2)of 2026, as higher feedstock costs and seasonally lower sales volumes weighed on profitability, according to a report by Aljazira Capital.
The report said gross margins remained under pressure on a quarterly basis due to elevated input costs, while softer demand during Q2 reduced sales volumes despite an improvement in cement prices compared with Q2-25.
Aljazira Capital noted that the company's resilient average selling prices (ASPs) demonstrate continued pricing discipline, positioning Arabian Cement to deliver stronger earnings once market demand recovers.
The report added that, following a 10.65% year-to-date (YtD) increase in the company's share price, Arabian Cement is currently trading at an estimated 2026 price-to-earnings (P/E) ratio of 10.4x.
Given the current valuation and near-term operating challenges, Aljazira Capital maintained its neutral rating on the stock and reiterated its target price of SAR 26.70 per share.
In Q2-26, the company posted a net profit of SAR 30.40 million, an annual surge of 48.29% from SAR 20.50 million.
