SABIC (2010) investor relations material

Executive summary

• Revenue reached $7.0 billion (SAR 26.15 billion) in Q1 2026, down 6% sequentially and 11% year-over-year, driven by a 13% decline in sales volumes but partially offset by a 7% increase in prices compared to Q4 2025.

• Adjusted EBITDA rose 25% quarter-over-quarter to $1.1 billion (SAR 4.15 billion), with margin improving to 15.9% from 11.9% in Q4 2025, reflecting cost discipline and higher prices.

• Adjusted net income was $218 million (SAR 816 million), a turnaround from a $373 million loss in Q4 2025.

• Transformation initiatives delivered $220 million recurring EBITDA uplift in Q1 2026, supporting progress toward 2030 targets.

• Strategic divestments in European Petrochemicals and Engineering Thermoplastics businesses are underway, with major capital projects like the SABIC Fujian project (98% complete) and urea capacity expansion progressing.

Financial highlights

• Q1 2026 revenue was $7 billion (SAR 26.15 billion), down 6% quarter-on-quarter and 11% year-over-year due to lower sales volume from geopolitical disruptions and plant maintenance.

• Adjusted EBITDA increased 25% to $1.1 billion (SAR 4.15 billion), with margin improving to 15.9%, up 4% from Q4 2025.

• Adjusted net income reached $218 million (SAR 816 million), a significant improvement from a loss in the previous quarter.

• Free cash flow was negative at -$70 million (SAR -0.27 billion), impacted by higher working capital.

• Net debt stood at $0.74 billion (SAR 2.77 billion), reflecting balance sheet strength.

Outlook and guidance

• Capital investment guidance for 2026 is $3.5–$4 billion, with a focus on sustainable earnings growth, operational excellence, and cash generation.

• Management expects petrochemical prices to continue rising in Q2 2026 due to tight supply and strong demand, especially in Asia.

• Portfolio optimization, transformation initiatives, and selective growth investments, particularly in China, are expected to deliver further EBITDA uplift.