Arabian Drilling Company (2381) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was SAR 821.6–822 million, broadly flat quarter-on-quarter and down 9.8–10% year-over-year, with EBITDA up 9.7% sequentially and net income of SAR 7.1 million, reversing a Q4 2025 loss.

• Backlog reached a record SAR 12.5 billion, up 31% year-over-year, with a 3.3-year average contract duration and a 3.7x book-to-bill ratio.

• Operational efficiency gains, cost optimization initiatives, and improved fleet utilization supported profitability.

• Rig utilization improved to 81.7% as four rigs resumed operations.

• First international drilling operation commenced in the UAE in April 2026.

Financial highlights

• Q1 2026 revenue: SAR 821.6–822 million, down 9.8–10% year-over-year and flat sequentially.

• EBITDA: SAR 289 million, margin 35.2%, down 24.1% year-over-year but up 9.7% quarter-on-quarter.

• Net income: SAR 7.1 million, a 90.6% year-over-year decrease but a turnaround from a net loss in Q4 2025.

• CapEx was SAR 175 million in Q1 2026, up 8% quarter-on-quarter, down 39.6% year-over-year; full-year 2026 guidance revised to SAR 700 million.

• Net debt declined 13.1% year-over-year to SAR 2.4 billion; net debt/EBITDA stable at 2x.

Outlook and guidance

• Q2 2026 revenue expected to decline up to 12% sequentially due to temporary offshore rig suspensions and delayed startups.

• Full offshore utilization anticipated in the second half of 2026.

• Confident in renewing all 18 contracts due in 2026, with 11 related to the Gas LSTK tender.

• Margin progression expected as offshore activity normalizes.