Zoujaj Nine-Month Net Profit Jumps 71% to 102.5M SAR

Riyadh, Saudi Arabia — The National Company for Glass Industries (Zoujaj) posted a nine-month net profit of 102.5 million SAR for the period ended September 30, 2026. That marks a 71.4% surge from 59.8 million SAR in the same period last year. Higher joint venture profits and improved gross margins drove the gain.

Quarterly Breakdown

In the third quarter alone, Zoujaj earned 36.4 million SAR in net profit, up 67.7% from 21.7 million SAR a year earlier. Sequentially, profit rose 9% from 33.4 million SAR in Q2. Revenue dipped slightly year-on-year to 39.4 million SAR from 39.8 million SAR, but climbed 15.5% from the 34.1 million SAR recorded in the prior quarter. Gross profit for Q3 reached 9.9 million SAR, nearly doubling from 5.3 million SAR in Q2 and up sharply from 6.2 million SAR a year ago.

Key Drivers

• Nine-month revenue grew 5.8% to 111.2 million SAR, driven by higher sales volume.
• Gross profit for the nine-month period rose 26.5% to 23.4 million SAR from 18.5 million SAR.
• Operating profit for the period jumped 71.4% to 2.4 million SAR from 1.4 million SAR.
• Joint venture profit contributions were the primary engine behind the large net profit gains in both the quarter and the nine-month period.
• Earnings per share for the nine-month period reached 3.11 SAR, up from 1.82 SAR a year ago.
• Total shareholders’ equity rose 9.7% to 874.7 million SAR from 797.6 million SAR.

What This Means for Investors

• Net profit growth of 71.4% over nine months far outpaces revenue growth of 5.8%, signaling that Zoujaj’s joint ventures are contributing meaningfully beyond core operations.
• Gross margin improvement is real and consistent — Q3 gross profit nearly doubled quarter-on-quarter, suggesting operational efficiency gains.
• Revenue remains relatively flat on a quarterly basis year-over-year, so investors should watch whether volume growth can sustain the top line into 2027.
• The external auditor issued an unmodified conclusion, and no reclassifications were made — the numbers reflect a clean reporting period.

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THE SAUDI STANDARD’S VIEW: ZOUJAJ’S PROFIT SURGE SIGNALS A STRUCTURALLY DIFFERENT EARNINGS MODEL

Zoujaj’s nine-month results are not simply a story of higher sales — they reflect a company whose earnings architecture has shifted materially toward joint venture income and operational discipline. For investors assessing this stock, understanding that distinction is essential to pricing the opportunity correctly.

• THE JOINT VENTURE PREMIUM DEMANDS SCRUTINY

When net profit growth of 71.4% is driven primarily by joint venture contributions rather than core revenue expansion, investors are effectively holding exposure to a different risk profile than a purely operational business. Joint venture income can be lumpy, contractually contingent, and less predictable than top-line sales. Investors should evaluate the durability of these contributions before extrapolating the current earnings trajectory into future periods.

• GROSS MARGIN RECOVERY IS THE MOST INVESTABLE SIGNAL

The near-doubling of gross profit in Q3 on a quarter-on-quarter basis, against relatively stable revenue, points to genuine cost efficiency improvements within the core manufacturing operation. This is the kind of structural margin expansion that compounds over time and is less dependent on external income streams. If management can sustain this trajectory, the core business becomes a more defensible earnings base independent of JV performance.

• FLAT CORE REVENUE REMAINS THE STRATEGIC CONSTRAINT

Nine-month revenue growth of 5.8%, while positive, sits well below the pace of profit expansion — a gap that cannot persist indefinitely without volume acceleration or pricing power improvement. The quarterly year-on-year revenue figures show minimal movement, which suggests the domestic glass market may be supply-balanced rather than demand-driven at this stage. Investors should position with awareness that top-line momentum will need to broaden for the current valuation re-rating to be sustained.

• BALANCE SHEET STRENGTH PROVIDES STRATEGIC OPTIONALITY

A 9.7% increase in total shareholders’ equity to 874.7 million SAR reflects retained earnings growth and a strengthening capital base. This level of equity buffer gives the company meaningful capacity to pursue capacity expansion, deepen joint venture commitments, or weather cyclical softness without recourse to dilutive financing. For long-term investors, this balance sheet profile reduces downside risk even in a flat-revenue environment.

Zoujaj operates at the intersection of Saudi Arabia’s construction sector and its broader industrial manufacturing ambitions — both of which are central pillars of Vision 2030’s non-oil economic diversification agenda. As the Kingdom accelerates giga-project delivery and residential infrastructure buildout, domestic demand for glass products is structurally supported over the medium term. Companies that combine improving operational efficiency with a strengthening equity base are precisely the type of industrial constituent that Vision 2030’s manufacturing targets are designed to cultivate — and Zoujaj’s current trajectory positions it as a quiet but credible beneficiary of that long-term transformation.