ADES (2382) Q1 2026 earnings summary

Executive summary

• Achieved revenue growth of 62.6% year-over-year in 1Q 2026 to SAR 2,390.7 million, driven by robust offshore activity and the Shelf Drilling acquisition.

• Net profit attributable to equity holders rose 22.5% to SAR 240.9 million, with EPS increasing to SAR 0.21.

• Maintained high operational utilization at 96.0% and a best-in-class safety record with a TRIR of 0.07.

• Backlog remained strong at SAR 34.47 billion, with 83.8% weighted toward offshore contracts and 69% from GCC countries.

• Completed the acquisition of Shelf Drilling Limited in November 2025, significantly expanding the offshore fleet and market presence.

Financial highlights

• EBITDA increased 40.8% year-over-year to SAR 1,149.6 million, with a margin of 48.1%.

• Gross profit rose to SAR 878.8 million, and gross margin was 36.8% for Q1 2026.

• Net profit rose 22.5% to SAR 240.9 million, though net profit margin declined to 10.1%.

• Operating cash flow before working capital changes was SAR 1,089.2 million, up 35.8%.

• Free cash flow increased 36% year-over-year, with cash conversion at 85%.

Outlook and guidance

• Maintains FY 2026 EBITDA guidance of SAR 4.50–4.87 billion, representing a 26–37% year-over-year increase.

• Guidance supported by international growth, backlog visibility, Shelf integration, and strong offshore fundamentals.

• Management expects temporary rig suspensions in the GCC due to regional tensions to have no material impact on overall operations or liquidity.

• The Group's diversified footprint across 20+ countries supports resilience against localized disruptions.

• Ongoing regional disruptions may pressure 2Q 2026 performance if conditions persist.