National Environmental Recycling Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

National Environmental Recycling Co. reported a net profit of SAR 21.28 million for the second quarter of 2026, representing a 154.5% increase year-over-year, while total net profit for the first half of the year rose 56.8% to reach SAR 41.77 million.
Quarterly revenue surged 183.6% year-over-year to SAR 648.29 million, driven by an 85% growth in quantity sold and a 223% spike in export sales following the expansion of feedstock sourcing across major Saudi Arabian cities.
Profitability gains were partially offset by macroeconomic headwinds, as management noted that geopolitical conditions led to significantly higher shipping and insurance costs, which limited the flow-through of revenue growth to the bottom line.
The company's financial position strengthened with total shareholders' equity rising 37.8% year-over-year to SAR 364.57 million, supporting an increase in half-year earnings per share (EPS) from SAR 0.12 to SAR 0.18.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	648,285,061	228,614,869	183.57	493,649,581	31.324
Gross Profit (Loss)	40,582,308	19,760,180	105.374	30,157,479	34.567
Operational Profit (Loss)	35,397,149	14,058,196	151.79	24,782,440	42.831
Net Profit (Loss) Attributable to Shareholders of the Issuer	21,282,188	8,361,412	154.528	20,487,583	3.878
Total Comprehensive Income Attributable to Shareholders of the Issuer	44,549,492	8,072,384	451.875	21,289,100	109.259
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,141,934,642	496,158,483	130.155
Gross Profit (Loss)	70,739,787	48,229,706	46.672
Operational Profit (Loss)	60,179,589	36,534,184	64.721
Net Profit (Loss) Attributable to Shareholders of the Issuer	41,769,771	26,635,962	56.817
Total Comprehensive Income Attributable to Shareholders of the Issuer	65,838,592	26,346,934	149.89
Total Shareholders Equity (after Deducting Minority Equity)	364,571,454	264,533,134	37.816
Profit (Loss) per Share	0.18	0.12
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Revenue increased by over 183% as compared to same quarter previous year due to following reasons: 1. The company expanded its feedstock sourcing footprint across Saudi Arabia's major cities, increasing feedstock availa-bility and achieving an 85% growth in quantity sold. 2. The company continued to expand its customer base across all geographic markets resulting into increase in export sales by 223%
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The increase in net profit by around 154% during current peri-od compared to the same period last year is due to increase in sales by 184%
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The increase in sales by approximately 31 % during current period compared to the previous quarter is due to: 1. The quantity sold increased by over 30% 2. Increase in local sales by approximately 67%, also supported increase in overall sales
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The increase in net profit by around 3.9% during current period compared to the previous quarter is due to: 1. The increase in sales by 31%. 2. The current market and geopolitical situation led to lower growth in net profit, majorly due to higher shipping and insur-ance cost.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Revenue increased by over 130% as compared to same period of the last year due to following reasons: 1. The company expanded its feedstock sourcing footprint across Saudi Arabia's major cities, increasing feedstock availa-bility and achieving an 48% growth in quantity sold. 2. The company continued to expand its customer base across all geographic markets resulting into increase in export sales by173%
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The increase in net profit by around 57% during current period compared to the same period last year is due to: 1. the increase in sales by 130%. 2. The current market and geopolitical situation led to lower growth in net profit, especially due to increasing shipping and insurance cost.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	None
Additional Information	None