SABIC (2010) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was SAR 34.6 billion ($9.23 billion), flat sequentially and up 6% year-over-year, with stable demand in most end-product sectors.

• Net loss was SAR 1.16 billion, improved sequentially but down year-over-year, driven by higher costs, restructuring, and discontinued operations.

• EBITDA was SAR 2.5 billion ($670 million), impacted by SAR 1.07 billion ($300 million) in one-time restructuring costs; adjusted EBITDA was SAR 3.7 billion ($1 billion), up 7% sequentially.

• Strategic workforce optimization and restructuring initiatives are expected to yield over $90 million in annual cost savings.

• Major growth projects in China and Saudi Arabia are progressing on schedule, with sustainability milestones and multiple Edison Awards achieved.

Financial highlights

• Revenue: SAR 34.6 billion ($9.23 billion), flat quarter-over-quarter, up 6% year-over-year.

• EBITDA: SAR 2.5 billion ($670 million), down 30% sequentially and 45% year-over-year; adjusted EBITDA (excluding special items): SAR 3.7 billion ($1 billion), up 7% sequentially.

• Net loss: SAR 1.16 billion, improved from SAR 1.84 billion last quarter, but down from net income a year ago.

• Free cash flow was negative at SAR 1.35 billion, reflecting lower cash from operations and restructuring costs.

• Gearing ratio improved to 0.48%, supporting dividend commitments and capital investments.

Outlook and guidance

• 2025 capital investment projected at $3.5–4.0 billion, focused on operational excellence, transformation, and selective growth.

• Guidance based on slow global economic growth, with GDP growth expected at 2.2–2.97%.

• Demand expected to remain stable across sectors in the next quarter.