‎Aslak targets high-margin products in 2027: CEO

Nabil Alamir, CEO of United Wire Factories Co. (Aslak)

United Wire Factories Co.(Aslak )is assessing chances to broaden into higher-margin items in 2027, based upon anticipated need and roi, CEO Nabil Alamir stated, including that the business is evaluating how finest to use its existing production capability before choosing whether to include brand-new assembly line.

Alamir informed Argaam that Aslak targets running at 80% to 90% of its production capability throughout the year to assist take in repaired expenses, although usage rates differ quarterly depending upon need and item mix.

He stated Q4 2026 efficiency will depend upon order volumes, especially from the building and construction sector, in addition to basic material cost motions and supply expenses, including that the business continues to boost functional effectiveness and success by protecting basic material products, managing expenses, and aligning its item combine with need, with the effect of these efforts anticipated to emerge slowly.

Concerning its monetary outcomes, Alamir kept in mind that net revenue increased year-on-year (YoY) in Q3 2026 in spite of lower sales volumes, primarily driven by an enhancement in the gross revenue margin to around 11.2% from 6.7%, along with lower selling, basic and administrative expenditures throughout the year.

The business’s financial investments likewise supported its outcomes, with A-1 Fence Arabia for Industry, in which Aslak holds a 30% stake, providing strong efficiency throughout the year and adding to earnings through Aslak’s share of its revenues, in line with the business’s technique of obtaining stakes in services that improve its success.

Alamir discussed that need and rates increased in Q2 amidst supply chain interruptions brought on by geopolitical advancements in the area. Cost boosts slowed towards the end of the quarter, while need reduced at the start of Q3 with the start of the summertime season.

Sales volumes decreased quarter-on-quarter (QoQ), while the gross revenue margin was up to around 11.2% from 13.3%. The contraction in margins was the primary chauffeur of the 44.7% decrease in net earnings compared to Q2.

Concerning sales, he stated volumes differed throughout item classifications depending upon need, showing the business’s varied portfolio, distinctions in item economics, and the marketplaces served by each item based upon its application. Appropriately, volumes increased for some items and decreased for others compared to both the previous quarter and the year-earlier duration.

The typical market price per load is impacted by modifications in the item mix and costs throughout specific item classifications, while Aslak’s income decreased by around 19% YoY and 11.8% QoQ in Q3, regardless of a yearly enhancement in its gross revenue margin.

Concerning basic material rates, Alamir stated they stayed reasonably steady in Q3 after boosts slowed towards completion of Q2, keeping in mind that the effect of purchase cost motions on production expenses depends upon procurement timing and stock usage, while advance getting strategies and protecting adequate amounts assisted preserve production without supply interruptions.

As needed for steel wire items in Saudi Arabia, he stated the business experienced a downturn in Q3, accompanying the summertime season and the seasonal deceleration in specific building and construction activities. Geopolitical advancements in the area continue to impact expense levels and the general organization environment, especially the speed of building and construction task execution.

Facilities and building and construction jobs continue to support need for numerous of Aslak’s items, with their effect on sales in the coming duration depending upon task execution development and the timing of order.

Aslak’s net revenue increased to SAR 23.73 million in the very first 9 months of 2026, from SAR 3.93 million in the year-earlier duration. Q3 net earnings increased to SAR 8.83 million, compared to SAR 2.68 million in Q3 2025, according to Argaam‘s information.