CATRION
CATRION Catering Holding Co.
As of: May 28, 2026
Company Profile
CATRION Catering Holding Company is a Saudi Joint Stock Company involved in the provision of cooked and non-cooked food to private and public sectors, sky sales, and the operation and management of duty-free zones and restaurants at airports. The Group also operates central laundries. It primarily provides catering services to Saudi Arabian Airlines and other foreign airlines in major Saudi Arabian airports (Jeddah, Riyadh, Dammam, Madinah) and Cairo International Airport.
The Story
CATRION is a high-return hospitality leader transitioning from a cash-harvesting model to a strategic expansion phase through major infrastructure projects and acquisitions.
Source: Annual 2025 (2026-04-01)
Performance & Distributions
Market Pricing Multiples
Growth Story
CATRION is shifting gears from a steady-state provider to an active expander. While historical sustainable growth rates were negative at -14.86% due to high dividend payouts and low historical reinvestment, current TTM Capex of 548.4 million SAR signals a major investment cycle. Revenue has climbed steadily from 2.13 billion SAR in FY 2023 to 2.44 billion SAR TTM, driven by a recovery in in-flight catering and expansion into non-airline segments. The strategic acquisition of a 55% stake in Al Khalejiah Catering Company (AKCC), completed in early 2026, further underscores a strategy to capture more of the airport and railway hospitality value chain, adding bakery and concierge services to their portfolio.
Profitability Dynamics
The company is a consistent value creator, maintaining a healthy 8.53% gap between its 5-year average ROIC of 15.97% and its WACC of 7.45%. This spread indicates that CATRION’s core operations generate returns well above the cost of capital. Despite heavy investment in the Red Sea waterfront laundry and catering units—which were capitalized as property, plant, and equipment for 801 million SAR in late 2025—the business maintains a double-digit net profit margin of 12.8%. The transition of these major projects from 'work in progress' to operational status in October 2025 is expected to begin contributing to cash flows as they serve the growing tourism infrastructure in the Kingdom.
Risk & Capital Structure
Risk Factors
CATRION’s risk profile is evolving as it utilizes leverage to fund its expansion. The gearing ratio increased from 42% in FY 2024 to 94% in FY 2025, reflecting the utilization of revolving facilities to finance the Red Sea projects and working capital. While the company benefits from a relatively low relevered beta of 0.81, it faces high customer concentration, with Saudi Arabian Airlines serving as both a major shareholder and its primary customer. Additionally, approximately 70% of the 1.16 billion SAR gross trade receivables are due from government or semi-government entities. To mitigate interest rate volatility on its variable-rate debt, the Group has implemented profit rate swaps with a notional amount of 413.9 million SAR.
Governance Disclosures
We track 8 key governance and oversight matters for this company in our database.
Key Management and Board Remuneration
Total compensation for key management personnel in 2025 was SAR 18,039,766, including short-term benefits and bonuses. Board of Directors' remuneration for the same period totaled SAR 7,427,114.
Abolition of Mandatory Statutory Reserve Requirement and Bylaw Amendment
The Company amended its Bylaws following a regulatory change in the Kingdom of Saudi Arabia that abolished the mandatory statutory reserve requirement (previously up to 30% of share capital). This change was approved by the Extraordinary General Meeting on October 12, 2023.
Research Report
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