ADES (2382) Q2 2025 earnings summary

Executive summary

• Global operations with 90 rigs in 13 countries, doubling fleet size since 2018 and maintaining a 98.6% utilization rate in 1H 2025.

• Achieved record backlog of SAR 29.72 billion as of June 30, 2025, with SAR 4.5 billion in new awards and entry into Brazil and Cameroon.

• Safety performance remains best-in-class with a TRIR of 0.12, well below industry standards.

• Interim consolidated financials for the six months ended 30 June 2025 were reviewed with no material misstatements identified under IAS 34.

• A significant towing incident involving a barge occurred post-period, resulting in fatalities, but is not expected to materially impact financials due to insurance coverage.

Financial highlights

• Revenue for 1H 2025 was SAR 3,048.96 million, nearly flat year-over-year.

• EBITDA rose 11.2% year-over-year to SAR 1,674.5 million, with margin improving to 54.9%.

• Net profit declined 3.6% year-over-year to SAR 388.4 million, with a margin of 12.7%.

• Operating cash flow increased 5.1% to SAR 1,650.9 million.

• Free cash flow grew 3.5% year-over-year, supported by EBITDA growth and lower capex.

Outlook and guidance

• Full-year 2025 EBITDA expected at SAR 3.28–3.39 billion, implying 8–12% organic growth.

• Interim dividend of SAR 231.2 million (about 60% of 1H net profit) recommended; an additional interim dividend of SAR 382.75 million proposed, subject to approval.

• Anticipates ramp-up in activity as rig deployments and contract preparations complete by end of 2025.

• Strong industry supply-demand dynamics and robust tendering activity in key markets support growth outlook.