Even more earnings

Walaa swings to 9M net income despite lower ins. revenue

Walaa Cooperative Ins. posted net income of SAR 22.7 mn in 3Q, up from a SAR 9.7 mn net loss a year earlier, according to a Tadawul filing, as improvement in its ins. business offset a decline in investment returns. The turnaround came despite an 11.6% y-o-y decline in ins. revenue to SAR 773.1 mn.

Underwriting did most of the lifting: The company’s ins. service result improved to SAR 34.6 mn from a loss of SAR 27.3 mn in 3Q 2025, driven primarily by lower medical ins. losses, a return to profitability in its motor ins. business, and stronger results in other property and casualty lines.

Investment losses kept a lid on the quarter: Walaa posted a net investment loss of SAR 2.8 mn, compared with SAR 31.1 mn in investment income a year earlier, after booking SAR 26.3 mn in unrealized losses on equity investments. The hit was partly cushioned by a more than fourfold increase in other income to SAR 13.8 mn, mainly driven by Walaa’s Aspire subsidiary, while other operating expenses increased 49.2% to SAR 15.4 mn.

The 9M picture tells a similar story: Walaa swung to net income of SAR 65.8 mn from a net loss of SAR 127 mn in the same period last year, with its ins. segment results improving to an SAR 49 mn gain from a loss of SAR 127.8 mn. Net investment income also rose 27.4% to SAR 60.2 mn, while other income increased to SAR 22 mn from SAR 7.3 mn. The top line remained under pressure, with ins. revenue falling 11.4% to SAR 2.08 bn.

Saptco picks up speed

Saudi Public Transportation Company (Saptco) reported net income attributable to shareholders of SAR 10.4 mn in 3Q, up 380.8% y-o-y, while revenue rose 30.8% to SAR 476.9 mn, according to a Tadawul filing. Higher transportation activity drove the increase in sales, while lower selling and distribution expenses and improved contributions from associates supported profitability. Margins remained stronger than last year, with gross income more than tripling y-o-y to SAR 124 mn, while operating income rose 113.3% to SAR 78 mn in 3Q.

Nine-month income jumped more than sixfold, with attributable net income surging 520.7% y-o-y to SAR 81.5 mn and revenue rising 13.8% to SAR 1.38 bn. The improvement was also driven by increased transportation operations, lower selling and distribution expenses, higher other revenue and finance income, and stronger contributions from associates and joint ventures.

Saptco is continuing to chip away at its accumulated losses, down to SAR 191.7 mn at the end of September from SAR 202.1 mn at the end of June, which the company attributed to 3Q net income. Accumulated losses now represent 15.3% of the company’s SAR 1.25 bn share capital.

Patient volumes drive Care’s growth

National Medical Care Co.’s (Care) net income grew 5.9% y-o-y to SAR 87 mn in 3Q, according to a Tadawul disclosure, as higher patient volumes supported a 14.4% increase in revenue to SAR 471.6 mn. The stronger activity, alongside an improved payer mix, helped gross income climb 18.5% and lifted gross margin to 38.1% from 36.7% a year earlier.

Higher operating expenses limited the flow-through to the bottom line, rising 26.8% y-o-y and outpacing revenue growth as Care continued to expand its operations. Net income margin narrowed to 18.5% from 19.9%.

The 9M picture is mixed: The quarter marks an improvement from the margin pressure seen earlier this year, but net income was still down 5.7% y-o-y to SAR 233.5 mn during the period, even as revenue rose 10.1% to SAR 1.32 bn. Higher staff costs and spending on meds and consumables pushed costs of revenue up 12.1%, while operating expenses rose 17.8% as the company expanded operations. Higher finance costs and zakat charges added further pressure, leaving the 9M gross margin at 35.8%, below last year’s 37.0%. Growth was recorded across the hospital network, led by Al Malaz.

Riyadh Cables’ product mix boosts margins

Saudi cable maker Riyadh Cables Group posted a 15.5% y-o-y increase in net income attributable to shareholders to SAR 325.1 mn in 3Q, according to a Tadawul filing. Revenue also climbed 18.2% to SAR 3.23 bn, which the company attributed to higher commodity prices.

Operating income outpaced both revenue and gross income in 3Q. It rose 20.6% y-o-y to SAR 401.8 mn, against revenue growth of 18.2% and gross income growth of 13.9% to SAR 508.2 mn. The company said product mix drove the increase in net income. The filing doesn’t say which products moved, or why gross income grew more slowly than revenue.

The first nine months show a wider gap between revenue and gross income. Net income rose 11.9% to SAR 913.9 mn as revenue increased 12.5% to SAR 8.93 bn, which Riyadh Cables attributed to higher commodity prices and larger volumes sold. Gross income grew a more modest 4.7%, while operating income rose 12.8%. The company again attributed the increase in net income to product mix.