SAL Saudi Logistics Services (4263) Q2 2025 earnings summary

Executive summary

• Q2 2025 net profit increased 4% YoY to SAR 162 million, despite a 3% revenue decline, driven by cost discipline, enhanced service mix, and strategic initiatives.

• H1 2025 net profit was SAR 315.3 million, down 13% YoY, reflecting a subdued Q1 and lower logistics activity.

• Gross profit margin remained strong at 56% for H1 2025, and EBIT margin rose to 43.8% in Q2 2025.

• Working capital efficiency improved, and net cash/net debt position strengthened through disciplined capex and cost control.

• SAR 5.2 billion in strategic investments align with Vision 2030 logistics ambitions and support long-term growth.

Financial highlights

• Q2 2025 revenue was SAR 394 million, down 3% YoY; H1 2025 revenue was SAR 778 million, down 9% YoY.

• Q2 2025 operating profit (EBIT) rose 3% YoY to SAR 172 million; H1 EBIT was SAR 337.3 million, down from SAR 395.4 million YoY.

• Q2 2025 EPS increased 4% YoY to SAR 2.03; H1 2025 EPS was SAR 3.94, down from SAR 4.55 YoY.

• Q2 2025 handling volumes declined 7% YoY to 219 million KG.

• Cash and cash equivalents at period end were SAR 496.3 million, down from SAR 1,362 million at year-end 2024, mainly due to SAR 960 million invested in short-term Murabaha deposits.

Outlook and guidance

• Single-digit volume growth and stable margins expected in the near term, with positive outlook for integrated logistics and e-commerce.

• Handling division to remain the core topline driver; Logistics division to face revenue and margin pressure in H2 as it builds foundational capabilities.

• 75% dividend payout policy to be maintained; higher Q2 2025 dividend approved.

• Strategic focus on automation, cost control, and Vision 2030 alignment.