ACWA Power (2082) Q2 2025 earnings summary

Executive summary

• Achieved significant growth in the first half of 2025, with operating income up 59%–60% year-over-year and adjusted net profit rising 62%–62.2%, supported by a SAR 7.125 billion ($1.9 billion) capital raise that was oversubscribed and largely backed by foreign investors.

• Expanded internationally with the first desalination project outside the Middle East, signed a record 15 GW PPA in Saudi Arabia, and launched a major green hydrogen and ammonia initiative for energy exports.

• Brought 3.3 GW of new power and 600,000 m³/day of water desalination capacity online, and acquired operational power and water assets in Bahrain and Kuwait.

• Portfolio investments reached $117 billion, targeting $250 billion by 2030, with a focus on renewables, water desalination, green hydrogen, and selective M&A.

• Doubled company size over three years and aims to double again by 2030, aligning with Vision 2030 and net zero by 2050 goals.

Financial highlights

• Operating income rose 59% to SAR 2,207 million compared to 6M 2024.

• Adjusted net profit increased 62%–62.2% year-over-year to SAR 1,172 million; reported net profit was SAR 909 million, down 1.9% due to non-routine items.

• Parent operating cash flow grew 52.3% to SAR 828 million.

• Net debt to POCF ratio stood at 6.94x as of June 2025, up from 6.36x at year-end 2024.

• Cash position at end of June was SAR 2.5 billion, with SAR 7 billion from the capital raise collected just after period end.

Outlook and guidance

• On track to double business scale again in five years, with a target of 70% renewable energy mix by 2030 and commercial production from NEOM Green Hydrogen project expected in 2027.

• Expectation to achieve financial close on 60-70% of signed PPAs within 2025, especially in Saudi Arabia.

• Expanding internationally, including new partnerships in Southeast Asia and a green hydrogen corridor to Europe.

• Net debt to POCF ratio expected to remain elevated for the next 18 months due to aggressive growth, with strategies in place to manage leverage.

• Saudi renewables program targets 20 GW per year, with 70% under bilateral PIF program.