MEPCO Reports Strong Q2 2026 Earnings Growth, with Net Income Up 193%

Middle East Paper Company (MEPCO) announced its financial results for the second quarter of 2026, reporting strong growth in revenue and profitability, supported by higher sales, an improved product mix, and continued operational efficiency.

MEPCO generated SAR 298.0 million in revenue in Q2 2026, representing an 8% increase year-on-year, primarily driven by a 17% increase in sales of containerboard and industrial papers. Gross profit rose 53% to SAR 56.5 million, with gross margin improving to 19% from 13% in the prior-year period.
Operational profit increased 70% to SAR 20.4 million, while net income attributable to equity holders of the parent reached SAR 15.3 million, up 193% from Q2 2025. Total comprehensive income attributable to equity holders increased 204% to SAR 18.2 million.

For the first half of 2026, MEPCO reported revenue of SAR 542.3 million, up 2% year-on-year. Net income for the period increased 35% to SAR 13.9 million, reflecting improved gross profit, lower finance costs, and a significant reduction in zakat expense.

“During the first half of 2026, MEPCO demonstrated the resilience of its business and the strength of its strategic direction,” said Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors. “We remain firmly on track with our flagship PM5 and TM6 projects, which will expand production capabilities, strengthen operational resilience, and position the Company to capture future market opportunities.”

Faisal Haddawi, Chief Executive Officer, said the second quarter marked a positive improvement in performance, with stronger sales and operational efficiency helping offset the challenges experienced during the first quarter. He added that PM5 and TM6 remain on track to commence soft operations by late 2027, with MEPCO investing SAR 238.9 million in capital work-in-progress during the period. Inventory levels also declined by more than 30%, positively contributing to the Company’s cash conversion cycle.

As of 30 June 2026, MEPCO’s total assets reached SAR 2.8 billion, up 5% from the end of 2025. The Company continued to invest in its strategic growth initiatives while maintaining a focus on operational efficiency and disciplined capital allocation. Total debt stood at SAR 837.3 million, while net debt was SAR 382.5 million.
MEPCO remains focused on strengthening its market position, optimizing its cost base, advancing its sustainability agenda, and executing its strategic investments to support sustainable long-term value creation.