Multi Business Group Swings to 11.4M SAR Nine-Month Profit

Riyadh, Saudi Arabia — Multi Business Group Co. posted a net profit of 11.4 million SAR for the nine months ending September 30, 2025. That compares to a net profit of just 1.4 million SAR in the same period a year earlier — a 687% surge. Stronger project margins in contracting and a sharp rise in building materials sales drove the turnaround.

Quarterly Momentum Builds

The third quarter alone delivered a net profit of 5.6 million SAR, reversing a loss of 2.9 million SAR in Q3 2024. Revenue jumped 71% year-over-year to 54.9 million SAR. Sequentially, profit rose nearly 10% from 5.1 million SAR in Q2 2025. Gross profit margin for the quarter reached 16.87%, compared to negative 1.76% a year ago. The recovery is consistent across all three quarters of 2025.

Key Drivers

• Contracting segment revenue reached 114.4 million SAR for the nine-month period, up 9.57% year-over-year, accounting for roughly 92% of total revenue.
• Building materials segment revenue surged 205% to 10.5 million SAR, driven by higher volumes sold.
• Nine-month gross profit more than doubled to 18.5 million SAR, with gross margin expanding to 14.84% from 7.29%.
• Operating profit for the nine months hit 12.7 million SAR, up 337% from 2.9 million SAR previously.
• Lower salaries and wages helped align the cost structure with current activity levels.
• Other income rose to 0.68 million SAR from 0.28 million SAR, supported by Murabaha deposits on surplus cash.

Backlog and Contract Activity

Multi Business Group awarded 146.7 million SAR in new contracts during the nine-month period. The project backlog stood at 243.7 million SAR at period end. That represents a coverage ratio of 1.8 times the company’s full-year 2025 revenue. The backlog signals continued near-term revenue visibility for the contracting segment, which remains the company’s primary revenue engine.

What This Means for Investors

• The swing from loss to profit is real and broad-based — margins improved in both contracting and building materials, not just one segment.
• A 243.7 million SAR backlog at 1.8x coverage gives Multi Business Group meaningful revenue runway into 2026.
• Earnings per share reached 0.25 SAR for the nine months, up from 0.03 SAR in the prior-year period — a meaningful improvement for shareholders.
• The external auditor issued an unmodified conclusion, though prior-period comparative figures were not independently reviewed and are presented for reference only.

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THE SAUDI STANDARD’S VIEW: MULTI BUSINESS GROUP’S PROFIT SURGE SIGNALS STRUCTURAL RECOVERY, NOT A ONE-QUARTER WONDER

Multi Business Group’s nine-month results mark a decisive inflection point for a company that has repositioned itself within Saudi Arabia’s construction and building materials ecosystem. The breadth and consistency of the turnaround — sustained across all three quarters of 2025 — warrants serious investor attention rather than dismissal as a seasonal or one-off event.

• MARGIN RECOVERY IS THE REAL STORY

Moving from a negative gross margin to nearly 17% in a single year reflects a fundamental improvement in how the company prices and executes contracts, not merely a revenue tailwind. Gross profit more than doubling on a nine-month basis confirms that operational discipline — particularly on cost structures including workforce alignment — is producing durable results. Investors should treat this margin expansion as the most credible indicator of business health.

• BACKLOG PROVIDES TANGIBLE EARNINGS VISIBILITY

A project backlog of 243.7 million SAR representing 1.8 times projected full-year revenue is a concrete buffer against revenue volatility heading into 2026. The 146.7 million SAR in new contract awards secured during the nine-month period demonstrates active commercial momentum, not a company coasting on existing work. For investors assessing forward earnings risk, this coverage ratio materially reduces near-term uncertainty.

• BUILDING MATERIALS SEGMENT DESERVES STRATEGIC WATCH

A 205% revenue surge in building materials, while still a small share of total revenue, signals that the company is deliberately diversifying beyond pure contracting. If this segment is scaled with the same margin discipline now evident in contracting, it could evolve into a meaningful secondary earnings driver. Investors should monitor whether building materials margins begin to approach or exceed those of the core contracting business in coming quarters.

• EPS RECOVERY CHANGES THE SHAREHOLDER CALCULUS

Earnings per share rising from 0.03 SAR to 0.25 SAR over nine months is not a marginal improvement — it represents an order-of-magnitude shift in the return profile available to existing shareholders. This level of EPS growth, if sustained through year-end, reframes how the market should value the company on a trailing and forward basis. Institutional and retail investors alike should recalibrate their positioning accordingly.

Multi Business Group’s trajectory fits squarely within the broader infrastructure and construction demand that Vision 2030 continues to generate across the Kingdom. As Saudi Arabia accelerates spending on housing, urban development, and giga-projects, mid-tier contractors with proven execution capability and strong backlogs are positioned to capture a growing share of that activity. Multi Business Group’s 2025 performance suggests it is building the operational foundation to compete credibly in that expanding market.