Article details
Advanced Building Industries Co. (SENAAT) announced a robust project backlog of SAR 5.5 billion as of mid-2026, according to CEO Ahmed Zaateri. The company's financial performance was primarily driven by strong results in its steel and insulation materials divisions, which benefited from high demand and favorable market pricing both domestically in Saudi Arabia and across international export markets. However, performance in the construction sector faced mild headwinds due to project execution schedules, regional geopolitical volatility, and global supply chain disruptions.
Despite overall operational strength, the air-conditioning division faced profitability adjustments totaling SAR 84.7 million related to inventory reconciliations and physical stock count shortfalls. Management recognized a SAR 21 million net inventory shortfall directly in the cost of revenue for the first half of the year. In response, SENAAT's board formed an independent special committee to oversee a thorough investigation and implement corrective operational measures to prevent future inventory discrepancies.
Looking ahead, SENAAT remains well-positioned to capitalize on Saudi Arabia's massive infrastructure and industrial expansion under Vision 2030. The company is strategically shifting focus toward high-margin, technically complex projects in sectors such as data centers, healthcare, logistics, and commercial development. Investors will be closely watching the company's second-half performance to see if operational efficiency improvements and a strong order book can offset recent inventory-related accounting adjustments.
