Arabian Internet and Communication Services (7202) Q4 2025 earnings summary

Executive summary

• Achieved 6% year-over-year revenue growth to 12.73bn SAR, maintaining market leadership in Saudi ICT services with a diversified portfolio and strong local content focus.

• EBITDA margin was 15.6%, with net profit margin at 11.8%; net profit declined 6% year-over-year to 1.5bn SAR due to a high base and one-off items in 2024.

• Secured multiple long-term contracts and strategic partnerships, including major deals with Aramco, National Water Company, and Center3.

• Became the first NVIDIA Cloud Partner in the Middle East, enhancing AI and GPUaaS offerings.

Financial highlights

• Revenue grew 6% year-over-year to 12.73bn SAR, driven by 10% growth in IT Managed Services.

• EBITDA increased 2% year-over-year to 1.99bn SAR; EBITDA margin declined 53bps to 15.6%.

• Net profit fell 6% year-over-year to 1.5bn SAR, reflecting non-recurring income and Zakat reversal in 2024.

• Gross margin declined 203bps to 21.0% due to revenue mix and regulatory changes.

• Capex decreased 25% year-over-year to 191mn SAR, representing 1.5% of revenue.

Outlook and guidance

• 2026 revenue growth guidance set at 6–8%, with EBITDA margin expected between 14–16%.

• Capex intensity projected to rise to 2–3% of revenue in 2026.