ADES (2382) Q2 2026 earnings summary

Executive summary

• Revenue grew 49.0% year-over-year to SAR 4,544.1 million in 1H 2026, driven by the Shelf Drilling acquisition, international expansion, and robust offshore performance.

• EBITDA increased 29.2% to SAR 2,164.0 million, with margin at 47.6% despite lower-margin Shelf operations.

• Net profit for 1H 2026 was SAR 374.1 million, down 3.7% year-over-year, reflecting non-recurring insurance fees and lower-margin contributions.

• The Shelf Drilling acquisition significantly expanded the offshore fleet and geographic reach, with integration focused on operational excellence and synergy realization.

• Maintained a strong backlog of SAR 34.67 billion, with 66% from GCC countries and a weighted average contract tenor of 4.54 years.

Financial highlights

• 2Q 2026 revenue rose 36.4% year-over-year to SAR 2,153.3 million; EBITDA up 18.2% to SAR 1,014.3 million.

• Gross profit for 1H 2026 was SAR 1,607 million, up from SAR 1,183 million year-over-year.

• Free cash flow increased 34.7% year-over-year, with strong cash conversion at 83%.

• Group equity rose to SAR 6,936 million as of 1H 2026.

• Net debt as of 1H 2026: SAR 18,131 million; cash and equivalents: SAR 2,435 million.

Outlook and guidance

• FY 2026 EBITDA guidance maintained at SAR 4.50–4.87 billion, up 26–37% year-over-year, supported by backlog, international growth, and Shelf integration.

• Interim dividend of SAR 220.9 million approved, representing about 60% of 1H 2026 net profit attributable to equity holders.

• Management expects margin recovery as Shelf integration progresses and synergies are realized.

• Temporary suspensions from regional conflict are seen as event-driven; most affected rigs have resumed operations.

• Proposed interim cash dividend of SAR 220.83 million (SAR 0.20 per share) was announced post-period.