SAL Saudi Logistics Services (4263) Q4 2025 earnings summary

Executive summary

• Achieved strong earnings growth and robust cash generation in FY 2025, with Q4 reflecting improved profitability from operational leverage, margin expansion, and efficiency gains.

• Ground Handling Division delivered standout performance, driven by volume uplift, expanded offerings, and major international contract wins.

• Logistics Division showed positive momentum, scaling operations and securing new contracts, despite a one-off lease asset write-off impacting margins.

• Strategic investments advanced across infrastructure, digital capabilities, and talent to support long-term growth.

• Net profit surged 42% YoY to 202mn (EPS 2.52), reflecting strong margin management in high-volume quarters.

Financial highlights

• Q4 2025 revenue: 509mn (+25% YoY); FY 2025 revenue: 1.71bn (+5% YoY).

• Q4 2025 EBIT: 202mn (+31% YoY); FY 2025 EBIT: 727mn (+3% YoY).

• Q4 2025 net profit: 202mn (+42% YoY); FY 2025 net profit: 698mn (+6% YoY).

• Q4 2025 EPS: 2.52 (+42% YoY); FY 2025 EPS: 8.72 (+6% YoY).

• Q4 operating margin improved by 1.8pp to 39.7%; FY 2025 margin slightly declined by 0.8pp to 42.6%.

Outlook and guidance

• Ground Handling expected to continue anchoring earnings and cash generation, supported by steady volume growth and service mix enhancement.

• Logistics division progressing through scale-up phase, with momentum from expanded offerings and infrastructure build-out.

• Investments in infrastructure, digital capabilities, and product development to drive improved margins and scale.

• 75% dividend payout policy to be maintained; strong net cash position and healthy balance sheet.

• Well positioned to capture opportunities from Saudi Arabia’s expanding logistics sector and Vision 2030 initiatives.