SAL Saudi Logistics Services (4263) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue and profit in Q2 2026, driven by broad-based growth in Cargo/Ground Handling and Logistics divisions, improved revenue quality, and strong import demand.

• Operational momentum recovered after regional disruptions, with disciplined commercial execution and significant progress toward profitability in Logistics.

• Strategic initiatives included the acquisition of Aviapartner Liège, marking the first international expansion, and the commencement of SAL Zones Phase 1 construction.

• Revenue for H1 2026 reached SAR 957.9 million, up from SAR 778.0 million YoY, with net profit rising to SAR 348.0 million from SAR 315.3 million.

• Advanced digital initiatives and established SAL International Ground Handling B.V. in the Netherlands.

Financial highlights

• Q2 2026 revenue rose 30% YoY to SAR 512 million; H1 2026 revenue up 23% to SAR 957.9 million.

• Gross profit for H1 2026 was SAR 544.0 million, with Q2 gross margin at 58.4%, up 1.6pp YoY.

• Q2 2026 EBIT increased 24% YoY to SAR 213 million (41.6% margin); net profit grew 18% YoY to SAR 191 million.

• EPS for H1 2026 increased to SAR 4.35 from SAR 3.94 YoY; Q2 EPS was 2.39 (+18% YoY).

• Ended the period with cash and cash equivalents of SAR 1,284.1 million and a strong net cash position.

Outlook and guidance

• Cargo Ground Handling expected to remain a resilient earnings base, supported by healthy demand and constrained industry capacity.

• Logistics division continues progress toward sustainable profitability, scaling a diversified, integrated platform.

• SAL Zones Phase 1 on track for completion by end of 2027, establishing a long-term logistics hub.

• Maintains 75% dividend payout guideline while preserving flexibility for growth investments.

• Cautiously optimistic for H2 2026, with guidance maintained until greater visibility on Q3 performance.