Elm (7203) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached 2,472 million, up 31.7%–32% year-over-year, with strong contributions from all segments and the integration of Thiqah Business Services Company.

• Net profit increased 32.3% year-over-year to 655–655.5 million, reflecting robust operational execution and diversified revenue streams.

• Completed and consolidated the acquisition of Sahel Al Madar Trading Company, increasing the stake to 60% and recognizing provisional goodwill.

• Advanced digital and AI capabilities, deepened partnerships, and maintained momentum across strategic priorities.

Financial highlights

• Gross profit rose to 1,049–1,050 million, with gross margin up to 42.4%–42.5%.

• EBIT/operating profit increased to 612 million, with a margin of 24.8%.

• Basic EPS climbed to 8.43, up from 6.38 in Q1 2025.

• Net profit margin reached 26.4%–26.5%, supported by a non-recurring gain of 59 million from fair value remeasurement.

• Cash and cash equivalents at period end were 1,334 million, down from 1,840 million at year-end 2025.

Outlook and guidance

• 2026 revenue growth guidance remains at 17%–19%, with EBIT margin guidance at 21%–23%.

• Management expects continued growth in digital business and BPO segments, with a focus on digital transformation and agile business models.

• Cash flow from operating activities as a percentage of net income guided at 85%–95%.

• No material impact from regional geopolitical developments as of the reporting date.