Ibrahim Al-Babtain, Chairman of Al-Babtain Power and Telecommunication Co.
Ibrahim Al-Babtain, Chairman of Al-Babtain Power and Telecommunication Co., stated the business’s overall contracted however unexecuted work reached roughly SAR 3.2 billion at the end of September 2026, while the worth of brand-new agreements granted year-to-date totaled up to almost SAR 2.5 billion.
In an interview with ArgaamAl-Babtain discussed that the development in contracted work throughout the year shows the business’s capability to change finished jobs with brand-new agreements. He anticipates the majority of the contracted work to be shown in income over the next 12 to 15 months, depending upon task execution schedules.
Relating to the agreements for the style, production, and supply of electrical energy transmission towers signed by the business with a number of specialists in November 2024 and February 2025, with an overall worth of about SAR 1.79 billion, Al-Babtain stated the majority of the work had actually been finished, while the staying work was being settled according to strategy. He kept in mind that the business continues to take part in tenders and protect brand-new agreements to change finished jobs.
Al-Babtain likewise stated net revenue attributable to investors increased 16.7% in Q3 2026 to SAR 148.5 million, while income increased 1.5% to SAR 788.5 million. He suggested that this showed an enhancement in the business’s functional effectiveness, supported by a boost in gross revenue margin to 25.2%, lower basic, administrative, and selling costs, in addition to lower funding expenses.
The business’s 9M 2026 gross revenue margin enhanced from 23.6% to 25.3%. Present margins show a beneficial job mix, although they might vary in the coming durations depending upon job types and basic material cost volatility, amidst continued supply chain disturbances and greater shipping and insurance coverage expenses. The business continues to concentrate on functional performance and expense control, according to the leading authorities.
He likewise highlighted that Q3 2026 profits was close to the typical earnings taped in Q1 and Q2, keeping in mind that quarterly earnings is naturally impacted by task shipment timing. He included that the present contracted stockpile supports profits levels in the coming durations, while the business continues to concentrate on earnings margins and enhancing functional effectiveness.
The business’s profits grew 12% in 9M 2026 to SAR 2.346 billion, while net revenue increased 41.5% to SAR 443.4 million, stated Al-Babtain. He kept in mind that Q3 efficiency kinds part of a wider pattern of enhancement throughout the year.
At the sector level, he described that the very first 9 months experienced income development in the towers and metal structures, poles and lighting, and style, supply, and setup sectors.
Concerning the effect of present geopolitical and financial conditions, Al-Babtain stated need for the business’s items stays strong, driven by ongoing financial investment in broadening power transmission and circulation networks, the conclusion of significant tasks in line with Saudi Vision 2030, and development in Egypt and the Gulf nations, both of which taped income development in the very first 9 months.
He discussed that geopolitical conditions had a restricted influence on the business’s sales throughout the present duration, with the primary impact being on supply chains, as shipping and custom-mades clearance times for basic materials increased.
The business dealt with these advancements by increasing stock levels to guarantee production connection and fulfill client shipment schedules. The duration likewise experienced variations in basic material costs and greater shipping and insurance coverage expenses, which the business handles through pre-established strategies, stated Al-Babtain.
He kept in mind that the business takes these expense increases into account when contracting for brand-new tasks and thinks about market value when pricing agreements, consequently restricting their effect on revenue margins.
Al-Babtain stated basic materials, especially iron and zinc, represent the biggest part of profits expenses. He discussed that costs under existing agreements are repaired and can not be changed, triggering the business to protect the raw products needed for their execution beforehand to restrict the effect of cost changes on margins.
New agreements, on the other hand, are priced according to present market rates, showing modifications in basic material, shipping, and insurance coverage expenses.
Concerning future chances, Al-Babtain stated the business sees appealing potential customers in 2027 and is targeting jobs throughout a number of sectors, especially towers and metal structures, poles and lighting, style, supply, and setup, solar power, along with abroad markets.
He described that chances in the towers and metal structures section are connected to ongoing growth of Saudi Energy Co.’s power transmission and circulation networks, growing electrical power need from information centers and commercial tasks, and the combination of renewable resource tasks into the grid.
The poles and lighting sector is taking advantage of significant facilities jobs under Saudi Vision 2030, consisting of preparations for Riyadh Expo 2030 and the 2034 FIFA World Cup, in addition to tasks in Qiddiya, Diriyah, and King Salman International Airport, stated the Chairman. He kept in mind that lighting works usually been available in the later phases of facilities growth, while regional material requirements support the business’s domestic production base.
Al-Babtain anticipates need for towers and metal structures to stay strong, with a progressive enhancement in the poles and lighting section as significant tasks advance towards conclusion and ending up phases.
In the style, supply, and setup section, he stated the business is positive about the future potential customers of the telecoms facilities sector, in the middle of fast change throughout the Middle East driven by the growth of 5G networks, telecoms network upgrades, digital facilities advancement, growing need for information services, and increased financial investment in information.
In the solar power sector, he anticipates brand-new jobs to be released in 2027, describing that the business concentrates on business and federal government jobs and is studying the addition of brand-new items to enhance production capability usage.
Relating to abroad markets, he validated that development chances exist in Egypt in the middle of strategies to incorporate renewable resource into the electrical power grid, in addition to chances throughout the Gulf nations.
Al-Babtain likewise stated the business continues to concentrate on enhancing working capital management, improving the money conversion cycle, and increasing stock management effectiveness, while continuing to justify funding expenses and handle monetary commitments in line with running capital. These efforts support liquidity and reinforce the business’s long-lasting monetary versatility.
He verified that the business follows a well balanced monetary policy focused on keeping financial obligation levels within suitable limitations for its service and in line with sector averages, while stabilizing the funding of operating requirements, supporting development strategies, and protecting a strong monetary position. The business likewise continues to enhance funding management performance and justify expenses.
Concerning its Q4 2026 outlook, Al-Babtain stated: “We view the final quarter with cautious optimism, despite our strong performance in the first nine months of 2026, the size of its contracted backlog, and strong demand for its products.”
The Chairman included that Q4 2026 might be somewhat impacted by the timing of job execution and shipment, along with continued geopolitical advancements and the resulting pressure on supply chains and product, shipping, and insurance coverage expenses. He validated that the business will continue to concentrate on enhancing margins, functional performance, and expense control.
Concerning dividends, he stated the board had actually authorized a circulation of SAR 0.50 per share for Q3 2026, bringing overall revealed circulations for the very first 9 months of 2026 to SAR 1.50 per share. “This shows the board’s self-confidence in the business’s monetary strength and continued efficiency, in addition to its dedication to routine and sustainable money circulations to fulfill investors’ expectations and goals,” he continued.
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