SAL Saudi Logistics Services (4263) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 16% year-over-year to 446 million, with net profit up 2% to 157 million and EPS at 1.96, reflecting resilient performance amid temporary airspace and maritime disruptions.

• Ground Handling remained the core profit engine, while Logistics showed narrowing losses and improving activity levels.

• Strong cash generation, disciplined working capital management, and robust liquidity supported investment priorities and ongoing growth.

• Major acquisition agreement signed for Aviapartner Liège SA in Belgium, marking the first international expansion.

• Dividend distributions approved and paid, including 117.6 million (1.47 per share) for Q1 2026.

Financial highlights

• Revenue rose 16% YoY to 446 million, with EBIT up 4% to 171 million and EBIT margin at 38.3%, down 4.6pp YoY due to higher costs.

• Net profit reached 157 million (+2% YoY), with EPS at 1.96 (+2% YoY).

• Gross profit was 244.7 million, and gross margin for Q1 2026 was 54.9%.

• Cash and cash equivalents at period end were 1.56 billion, up from 1.26 billion a year earlier.

• Total assets increased to 4.85 billion, with total liabilities up to 3.23 billion.

Outlook and guidance

• Ground Handling expected to maintain operational momentum with volume uplift and improved service mix.

• Logistics division on track for gradual improvement, focusing on topline growth and infrastructure build-out.

• SAL Zones progressing with phased development and pre-leasing ahead of 2028 revenue generation.

• Management expects continued growth, supported by strategic expansion and revenue diversification, including the pending acquisition in Belgium.

• Ongoing capital projects, especially cargo terminals, are expected to be completed by 2027.