United Wire Factories Co. (Aslak) decided to boost operating rates in 2025 to maintain its market share and absorb fixed costs amid intense competition, CEO Nabil Al-Amir told Argaam.
This led to a 9% year-on-year increase in revenues for 2025. However, profit margins declined by about 22% due to fierce price competition across all product categories, he added.
According to the top executive, total sales volumes reached their highest level compared to other periods during the year, while price competition was at its peak before year-end.
He added that the company reached peak production capacity in the fourth quarter of this year, achieving a utilization rate of 80-90% of its production capacity as planned, highlighting that this strategy was fully implemented during the last quarter.
Al-Amir further said that Aslak always seeks to find solutions to address ongoing and unexpected changes affecting demand volume and company performance.
The CEO noted that market demand and weak liquidity during Q1 2026 remained at the same levels as by the end of 2025, adding that the early start of the Ramadan season contributed to slowing demand, along with the prevailing regional conflict.
The company implemented a number of initiatives and internal measures aimed at improving operational efficiency and enhancing profitability. The outcomes of these efforts will gradually be reflected during 2026, he further stated.
According to Argaam’s data, Aslak’s profit fell to SAR 5.1 million by the end of 2025, compared to SAR 16.2 million in 2024. The fourth-quarter profit amounted to SAR 1.1 million, a decline of 43% year-on-year.
