Middle East Paper Co posts 8% Q2 revenue rise, keeps PM5 and TM6 on schedule

Saudi producer Middle East Paper Co (MEPCO) reported second-quarter 2026 revenue of SAR 298.0m, up 8% year on year, as containerboard and industrial paper sales grew 17% and gross margin rose to 19% from 13%. The company invested SAR 238.9m in capital work-in-progress during the quarter, with its PM5 containerboard machine and TM6 tissue line still expected to begin soft operations in late 2027.

Why this mattersContinued capex and margin recovery despite earlier project delays suggest MEPCO is sustaining its capacity expansion through a period of rising regional containerboard demand.

• Q2 2026 revenue reached SAR 298.0m, up 8% year on year
• Containerboard and industrial paper sales rose 17% in the quarter
• Gross margin improved to 19% in Q2 2026 from 13% a year earlier
• Net profit rose to SAR 15.3m in Q2 2026
• The company invested SAR 238.9m in capital work-in-progress during the quarter for its PM5 and TM6 projects
• PM5 and TM6 are on track to begin soft operations by late 2027

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