Riyadh, Saudi Arabia — Saudi Automotive Services Co. (SASCO, TASI: 4050) reported a net profit of SAR 42.4 million for the nine months ending 30 September 2025, up 24.4% from SAR 34.1 million in the same period of 2024. The company’s earnings growth was supported by increased station expansion, stronger sales from the SASCO Palm and transportation divisions. Additionally, a rise in diesel prices contributed.
Nine-Month Performance
Revenue grew 14.8% year-on-year to SAR 8.7 billion, reflecting higher sales volumes and new station openings across the Kingdom. Despite this, gross profit decreased 5.6% to SAR 220.5 million, mainly due to elevated cost of sales.
Operating profit increased modestly by 2.7% to SAR 152.1 million, as higher sales offset rising operating expenses.
Total comprehensive income surged 49.6% to SAR 44.5 million, supported by gains from investment properties and fair value changes in financial assets.
Shareholders’ equity reached SAR 893.9 million, up 10.6% year over year. Meanwhile, earnings per share improved to SAR 0.61 from SAR 0.49 a year earlier.
Third Quarter Highlights
For Q3 2025, SASCO achieved SAR 8.4 million in net profit. This was down 25% from SAR 11.2 million in Q3 2024 and 72% lower than SAR 29.7 million in Q2 2025.
Quarterly revenue rose 16% year-on-year to SAR 3.07 billion. Station network expansion, higher SASCO Palm sales, and increased transport activity drove this increase.
However, higher sales costs, financing expenses, and provisioning weighed on profitability despite gains in other income and dividends from investments.
Comprehensive income for the quarter was SAR 10.6 million, down 8.6% from the previous year.
Key Drivers
- Station network growth: Continued expansion boosted sales volumes.
- Diesel pricing: Higher diesel selling prices supported top-line growth.
- SASCO Palm and transport division: Both segments delivered strong performance.
- Cost pressures: Increased cost of sales, financing expenses, and provisions offset part of the revenue gain.
- Investment gains: Fair value appreciation of investment properties and financial assets supported net income.
Management and Outlook
Management attributed the year-to-date profit rise to higher revenues, lower general and administrative expenses, reduced provisioning, and investment gains.
The external auditor issued an unmodified opinion, affirming the reliability of the company’s financial statements.
SASCO confirmed that its acquisition of 70% of Tadbeer Recruitment Co. became effective on October 9, 2025, following regulatory approvals. This transaction was finalized after the reporting period and will be reflected in subsequent financial statements.
The company continues strengthening its Saudi retail fuel market position while diversifying through transport, hospitality, and service ventures.
What This Means for Investors
- Revenue expansion: Ongoing station growth and higher diesel prices drive top-line performance.
- Earnings volatility: Quarterly profit decline highlights cost pressures and margin sensitivity.
- Strategic diversification: Tadbeer acquisition adds exposure to service-sector growth.
- Outlook: Moderately positive, supported by sales momentum and investment income, but dependent on cost containment and financing efficiency.
THE SAUDI STANDARD’S VIEW: SASCO’s 2025 Profit Growth Reflects Expansion Strength and Market Diversification
Saudi Automotive Services Co. (SASCO) delivered a 24% rise in net profit for the first nine months of 2025. This underscores the resilience of Saudi Arabia’s retail fuel and mobility services sector. The company’s performance highlights how strategic expansion, operational diversification, and investment discipline drive sustainable growth. This aligns with Vision 2030’s goal to enhance private-sector competitiveness and service efficiency.
• Revenue Growth Driven by Network Expansion
With revenue increasing 14.8% year-on-year to SAR 8.7 billion, SASCO continues to benefit from the steady rollout of new service stations across the Kingdom. This expansion enhances nationwide fuel accessibility while supporting Saudi Arabia’s transport and logistics infrastructure, key National Transport and Logistics Strategy components.
• Operational Resilience Despite Cost Pressures
Although gross profit declined due to higher input and financing costs, SASCO maintained growth in operating profit. They achieved this through disciplined expense control and steady sales performance across its fuel and transport divisions. The company’s ability to manage rising costs amid sector-wide inflation demonstrates sound operational governance.
• Diversification Strengthening Long-Term Growth
Beyond its core fuel retail business, SASCO’s transport and SASCO Palm divisions have emerged as strong contributors to earnings. The post-period acquisition of a 70% stake in Tadbeer Recruitment Co. marks a strategic step toward service-sector diversification. It broadens the company’s revenue base and reduces dependency on fuel-related income.
• Investment Gains Bolstering Profitability
Fair value appreciation in investment properties and financial assets added a further layer of income stability. These gains illustrate SASCO’s effective portfolio management and show its capacity to generate returns beyond operational earnings.
• Positioning for Sustainable Expansion
As SASCO continues integrating its service offerings—from fuel and hospitality to logistics and staffing—it aligns closely with Vision 2030’s objective. The goal is to create competitive, diversified, and customer-focused Saudi enterprises. Continued efficiency improvements and investment-driven growth are expected to sustain profitability into 2026.
SASCO’s results reaffirm the vitality of Saudi Arabia’s evolving service and mobility sectors. By balancing expansion with diversification and maintaining financial discipline, the company exemplifies the Kingdom’s broader transition toward a dynamic, multi-sectoral economy anchored in innovation, private investment, and operational excellence.
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