Elm (7203) Q4 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q1 2026, with revenue up 31.7% to 2,472 million and net profit up 32.3% to 655 million, supported by Thiqah integration and strategic initiatives.

• Expanded project portfolio with 15 new projects awarded and a backlog of 4.8 billion to be recognized over 3-5 years.

• Closed Madar transaction, consolidating results and driving value creation in business products.

• Maintained operational and financial stability through diversified revenue streams and disciplined execution.

Financial highlights

• Q1 2026 revenue reached 2,472 million, up 31.7% year-over-year, with gross profit rising 35.9% to 1,049 million and margin expanding to 42.4%.

• EBIT increased 29.9% to 612 million, with a margin of 24.8%; net profit grew 32.3% to 655 million, maintaining a margin near 26%.

• Thiqah contributed 286 million to revenue and 77 million to gross profit; Madar contributed 5 million to revenue but recorded a gross loss.

• Non-recurring fair valuation gain of 59 million recognized on Sahel Madar step acquisition.

• Total assets rose 0.4% to 11,938 million, equity increased 9.1% to 3,950 million, and cash and cash equivalents stood at 1,334 million at quarter-end.

Outlook and guidance

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

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

• Focus on expanding into new markets, developing agile business models, and leveraging digital and AI capabilities.

• Continued integration of Thiqah and readiness to capture long-term opportunities are strategic priorities.