Elm (7203) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 17.0% to 7,788 million; operating profit increased 22.5% to 1,921 million, and net profit attributable to equity holders rose 18.4% to 1,947 million.

• Digital Business led growth; gross margin expanded 1.5 percentage points to 42.2%, and operating cash flow was 85% of net profit.

Financial highlights

• 9M gross profit increased 21.3% to 3,286 million; EBIT margin was 24.7%, up 1.1 percentage points, and attributable net profit margin was 25.0%.

• Q3 revenue rose 10.1% to 2,791 million; EBIT increased 34% to 783 million and attributable net profit rose 39.2% to 778 million.

• Q3 EBIT margin rose 5.0 percentage points to 28.1%, while net margin increased 5.8 percentage points to 27.9%.

• Basic EPS was SAR 24.99 for 9M 2026 versus SAR 21.13; Q3 basic EPS was SAR 9.98 versus SAR 7.18.

Outlook and guidance

• FY 2026 revenue growth guidance was reduced to 14%–16% from 17%–19%; 9M actual growth was 17%.

• FY 2026 EBIT margin guidance remains 21%–23%, and operating cash flow as a share of net income guidance remains 85%–95%.

• Priorities include growing core volumes and services, expanding internationally and in B2B, investing in AI, and evolving BPO toward scalable, tech-enabled services.

• IFRS 18 takes effect for annual periods beginning 1 January 2027; adoption is expected to change presentation and disclosures, but not net profit or net assets.