Arabian Internet and Communication Services (7202) Q2 2026 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth to SAR 6.243 billion in 1H26, driven by accelerated project execution and strong demand for ICT solutions.

• EBITDA grew 12% YoY to SAR 1.089 billion, with margin expanding by 0.5 percentage points to 17.4%.

• Net profit rose 2% YoY to SAR 824 million, with net profit margin at 13.2%.

• Strengthened capital base with a 100% capital increase via a 1-for-1 bonus issue of 120 million shares to support growth and shareholder value.

• Improved cash flow generation, with operating cash flow of SAR 500 million and free cash flow of SAR 315 million in 1H26.

Financial highlights

• Revenue: SAR 6.243 billion (+9% YoY); EBITDA: SAR 1.089 billion (+12% YoY); Net profit: SAR 824 million (+2% YoY).

• Gross profit margin at 22.0% (-22bps YoY), rebounding to 24.3% in 2Q26.

• Net cash position at SAR 693 million, down 20% YoY due to dividend payments.

• Capex increased 4% YoY to SAR 90 million, maintaining a low capex intensity of 1.4%.

• Free cash flow reached SAR 315 million, supported by EBITDA growth and working capital improvements.

Outlook and guidance

• Reiterated FY26 guidance: revenue growth of 6–8%, EBITDA margin of 14–16%, and capex intensity of 2–3%.

• Focus remains on executing a diversified project pipeline and maintaining operational excellence.

• Continued investment in high-return growth opportunities and selective project monetization.