Management discussion and analysis

CGS operates through an integrated engineering and manufacturing platform built around four complementary business segments: Automotive Solutions, Stationary Refrigeration, Customised Solutions, and Aftermarket Services. These segments collectively enable the Group to participate across the broader cold-chain and specialised engineering value chain while leveraging a shared foundation of Saudi-based manufacturing capability, engineering expertise, systems integration, and lifecycle support.

As illustrated in the graphic, at the core of the business model is CGS’s engineering and manufacturing capability, which supports the design, fabrication, assembly, and servicing of specialised temperature-controlled and engineered infrastructure solutions tailored to customer specifications across multiple industries. The Group operates manufacturing facilities in Riyadh serving automotive and customised solutions, supported by operational facilities in Dammam, Jeddah, and Bahrain that enhance customer proximity, service delivery, and project execution. Stationary refrigeration projects, meanwhile, are primarily executed on-site based on client requirements.

The Automotive Solutions segment represents the Group’s largest business line, contributing approximately 52% of FY26 revenue. The segment focuses on temperature-controlled and non-temperature-controlled transportation solutions, including refrigerated truck and trailer bodies, transport refrigeration applications, dry freight bodies, and vehicle conversions supporting food distribution, pharmaceuticals, logistics, and retail supply chains. CGS maintains a leading position within Saudi Arabia’s automotive cold-chain segment, supported by long-standing technical collaboration with Carrier Transicold, extensive engineering know-how and one of the region’s most advanced manufacturing capabilities for refrigerated bodies and insulated panels.

The Stationary Refrigeration segment focuses on temperature-controlled processing and cold-storage infrastructure. This includes industrial refrigeration systems, cold rooms, blast freezers, pressure management systems, and processing refrigeration applications serving food production, logistics, pharmaceuticals, and industrial customers. Demand within this segment is primarily driven by Saudi Arabia’s increasing focus on food security, pharmaceutical distribution, logistics infrastructure, and cold-chain regulation.

The Customised Solutions segment, meanwhile, extends CGS’s technical expertise and product development capability into adjacent sectors requiring specialised manufactured infrastructure and systems integration. This includes ambulances, defence shelters, surveillance vehicles, telecommunications shelters, oil and gas manpower housing solutions. The segment has become an increasingly important growth platform for the Group as Saudi Arabia advances localisation initiatives across healthcare, defence, telecommunications, and industrial sectors.

Complementing these operations is the Aftermarket Services segment, which provides maintenance, monitoring, IoT-enabled fleet management and lifecycle support services across the Group’s installed base. CGS currently operates one of the Kingdom’s broadest refrigeration service networks, reaching almost the entire population. This service platform strengthens customer life cycle partnership, supports operational reliability and provides the Group with recurring revenue streams linked to its installed equipment base.

The Group’s integrated model allows these segments to reinforce one another operationally and commercially. Expert knowledge accumulated over a long history of refrigeration manufacturing supports expansion into specialised infrastructure solutions, while the installed equipment base generated through automotive and stationary refrigeration solutions feeds long-term aftermarket service demand. This interconnected model enables CGS to operate as an integrated engineering and cold-chain solutions platform aligned with several of Saudi Arabia’s long-term strategic growth priorities, including food security, logistics expansion, healthcare infrastructure, industrial localisation, and defence capability development.

CGS industrial refrigeration systems support temperature-critical operations across food processing and distribution, using ammonia as a proven and energy-efficient refrigerant.