Arabian Internet and Communication Services (7202) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2025 reached SAR 8.823 billion, up 6% year-over-year, with net profit at SAR 1.224 billion, down 4% from the prior year.

• Achieved approximately 10 new partnerships and contracts since July 2025, including major agreements with Aramco, Motorola Solutions, Dell, and Cloudera.

• Maintained market leadership with a 22.7% share and a strong project pipeline, signing over 150 customer contracts in 9M 2025.

• Asset-light business model with robust free cash flow generation and a net cash position of 1.1 bn as of 9M 2025.

• Gross profit for the nine-month period was SAR 1.98 billion, a 3.2% decrease year-over-year, reflecting higher cost of revenue.

Financial highlights

• Revenue grew 6% year-over-year to 8,823 mn in 9M 2025, driven by a 21% YoY increase in IT Managed & Operational Services.

• EBITDA rose 3% YoY to 1,508 mn, while net profit declined 4% YoY to 1,224 mn, reflecting a high base in 2024 due to one-off gains.

• Gross profit margin decreased by 211 bps YoY to 22.4%, with a sequential recovery in 3Q 2025.

• Capex dropped 52% YoY to 124 mn, and net cash from operating activities was negative at (456) mn due to project cycle timing.

• Operating profit for the nine months was SAR 1.28 billion, up 1.9% year-over-year.

Outlook and guidance

• Maintains FY 2025 guidance: revenue growth of 8–10%, EBITDA margin of 14–16%, and capex intensity of 2–3%.

• Management does not expect post-period contracts or negotiations to materially impact the Group’s financial position.

• Strong revenue contribution from ongoing and newly secured projects expected to continue in the next quarter.