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 results for Q1 2026.

• Entered a new phase of maturity with focus on operational discipline, execution, and financial resilience.

• Achieved SAR 1 billion in financial closes and added significant power and water capacity, including commercial operation of Az-Zour North phases 2 and 3.

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

• ESG ratings improved, with MSCI upgrade to 'A', S&P Global scores above industry average, and Sustainalytics risk rating reduced to Medium Risk.

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.

• Acquisitions in Kuwait, Bahrain, and Saudi contributed SAR 778 million to operating income.

• Deferred tax impact of SAR 74 million, mainly from Moroccan assets; lower finance costs and higher financial income partially offset by higher forex loss.

Outlook and guidance

• Committed to 2030 targets: 175 GW power, 15+ million m³/day water, and up to 1 million tons/year green hydrogen.

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

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

• Some project timelines may shift due to regional conflict and slow policy development affecting long-term offtake contracting.

• No adverse outlook on financial close targets or bid-submission pipeline.