ACWA Power (2082) Q1 2026 earnings summary

Executive summary

• Achieved robust operational and financial performance despite heightened regional geopolitical tensions, with no material adverse impact on Q1 2026 results.

• Entered a new phase of maturity with disciplined growth, operational excellence, and portfolio resilience across power, water, and renewables.

• Achieved key milestones: entry into Kuwait with Az-Zour North project, SAR 1 billion in financial-closed activity, and two new commercial operation dates, adding 0.77 GWh and 0.6mn m³/day capacity.

• Continued progress on 2030 strategic targets for power, water, and green hydrogen capacity.

• Significant improvements in ESG ratings across major agencies, including MSCI upgrade to 'A' and S&P Global scores above industry average.

Financial highlights

• Revenue for Q1 2026 was SAR 2,022 million, up from SAR 1,967 million in Q1 2025.

• Operating income for Q1 2026 was SAR 729 million, down 16% year-over-year, mainly due to lower development, procurement, and construction services revenue.

• Net profit for Q1 2026 was SAR 345 million, a 19% decrease compared to Q1 2025, impacted by lower operating income and higher tax expenses.

• Lower development revenues and deferred tax impacts were key factors in the decline, partially offset by lower finance costs and higher financial income.

• Acquisitions in Kuwait, Bahrain, and Saudi contributed SAR 78 million to operating income.

Outlook and guidance

• Management remains vigilant amid ongoing geopolitical uncertainties, with proactive risk monitoring and operational continuity measures in place.

• Committed to 2030 targets: 175 GW power, 15+ million m³/day water, and up to 1 million tons/year green hydrogen, though some bidding timelines may shift due to regional conflict.

• Immediate pipeline includes 3 GW power, 8.7 GWh BESS, and 600,000 m³/day water in awarded projects pending contract signing.

• Additional bids submitted for over 1 GW power and 0.25 million m³/day water; broader pipeline includes 91.5 GW power and 10+ million m³/day water opportunities.

• Conservative stance on 2030 targets due to slow policy development affecting long-term offtake contracting.