Watani Iron Steel Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Watani Iron Steel Co. reported a net profit of SAR 23.45 million for the second quarter of 2026, a significant turnaround from a loss of SAR 1.76 million in the same quarter last year and an 887.4% increase over the previous quarter.
Quarterly revenue grew 67% year-on-year to SAR 160.81 million, while half-year sales reached SAR 280.25 million (+30.7% YoY), driven by increased market demand and higher sales volumes.
The surge in profitability was primarily attributed to a significant increase in the average selling price of finished goods and improved profit margins linked to lower costs from an increase in finished goods inventory.
For the six-month period ending June 30, 2026, net profit reached SAR 25.83 million (up 2,213% YoY), resulting in an earnings per share (EPS) of SAR 0.14 compared to SAR 0.01 in the prior year.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	160,805,515	96,275,310	67.026	119,440,512	34.632
Gross Profit (Loss)	30,433,755	3,524,495	763.492	9,036,606	236.783
Operational Profit (Loss)	25,261,810	-380,620	-	4,002,565	531.14
Net Profit (Loss) Attributable to Shareholders of the Issuer	23,452,415	-1,756,541	-	2,375,070	887.441
Total Comprehensive Income Attributable to Shareholders of the Issuer	23,452,415	-1,756,541	-	2,375,070	887.441
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	280,246,027	214,467,459	30.67
Gross Profit (Loss)	39,470,361	12,238,365	222.513
Operational Profit (Loss)	29,264,375	3,971,505	636.858
Net Profit (Loss) Attributable to Shareholders of the Issuer	25,827,485	1,116,484	2,213.287
Total Comprehensive Income Attributable to Shareholders of the Issuer	25,827,485	1,116,484	2,213.287
Total Shareholders Equity (after Deducting Minority Equity)	261,975,584	252,472,257	3.764
Profit (Loss) per Share	0.14	0.01
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	-	-
Accumulated Losses	-	-
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	The increase in sales during the current quarter compared to the same quarter of the previous year is due to the higher sales volume in the second quarter of 2026 compared to the second quarter of 2025, which is attributed to higher demand rates during the second quarter of 2026.
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 during the current quarter compared to the same quarter of the previous year is due to: First: A significant increase in the average selling price of finished goods during the second quarter of 2026 compared to the average selling price of finished goods in the second quarter of 2025. Second: An increase in sales volume in the second quarter of 2026, compared to a decrease in sales volume during the same quarter of 2025. Additionally, an increase in finished goods inventory significantly contributed to higher profit margins due to lower costs, which directly resulted in the increase in net profit for the current quarter compared to the same quarter of the previous year.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The increase in sales during the current quarter compared to the previous quarter is due to higher sales volume in the second quarter of 2026 compared to the first quarter of 2026, which is attributed to higher demand rates during the second quarter of 2026 compared to the demand rates of the first quarter of 2026.
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 during the current quarter compared to the previous quarter is due to: First: A significant increase in the average selling price of finished goods during the second quarter of 2026 compared to the average selling price of finished goods in the first quarter of 2026. Second: An increase in sales volume for the second quarter compared to the sales volume for the first quarter of 2026. In addition, an increase in finished goods inventory, which significantly contributed to higher profit margins due to lower costs, directly resulting in higher net profit for the current quarter compared to the previous quarter of the same year.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The increase in sales during the current period of 2026 compared to the same period in 2025 is due to higher sales volume in the current period of 2026 compared to the same period in 2025, which is a result of higher demand rates during the current period compared to the same period of the previous year.
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 during the current period of 2026 compared to the same period of 2025 is attributed to the rise in the average selling price of finished goods during the current period of 2026 compared to the average selling price of finished goods for the same period of 2025, along with the increase in sales volume during the current period of 2026 compared to the sales volume for the same period of 2025. Additionally, the increase in finished goods inventory significantly contributed to higher profit margins due to its lower 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)	The company’s condensed interim financial statements for the three-month and six-month periods ended June 30, 2025, were examined by another auditor who expressed an unmodified opinion on 18 Safar 1447 AH (corresponding to August 12, 2025). The financial statements for the year ended December 31, 2025, were also audited in accordance with the International Standards on Auditing adopted in the Kingdom of Saudi Arabia by another auditor who expressed an unmodified opinion on 23 Ramadan 1447 AH (corresponding to March 12, 2026).
Reclassification of Comparison Items	The company has reclassified some of the comparative figures to conform to the company's current classifications.
Additional Information	-