SABIC (2010) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $7.0 billion (SAR 26.2 billion), down 6% quarter-on-quarter and 10.7% year-over-year, driven by lower sales volumes but partially offset by higher prices.

• Adjusted EBITDA rose 25% sequentially to $1.1 billion (SAR 4.15 billion), with margin improving to 15.9% from 11.9% in Q4 2025, reflecting cost discipline and higher prices.

• Adjusted net income reached $218 million (SAR 816 million), a turnaround from a loss in Q4 2025.

• Transformation initiatives delivered $220 million recurring EBITDA uplift in Q1 2026, supporting progress toward 2030 targets.

• Strategic divestments in European Petrochemicals and Engineering Thermoplastics businesses are underway, impacting reported results and supporting portfolio optimization.

Financial highlights

• Q1 2026 revenue was $7 billion (SAR 26.15 billion), down 6% quarter-on-quarter and 11% year-over-year due to lower sales volumes and plant maintenance.

• Adjusted EBITDA increased 25% quarter-over-quarter to $1.1 billion (SAR 4.15 billion); margin improved to 15.9%.

• Adjusted net income was $218 million (SAR 816 million), compared to a loss in Q4 2025.

• Free cash flow was negative at -$70 million (SAR -0.27 billion), impacted by higher working capital.

• Net debt stood at $0.74 billion (SAR 2.77 billion) as of March 31, 2026.

Outlook and guidance

• Capital investment guidance for 2026 is $3.5–$4 billion, with a focus on sustainable earnings growth and cash generation.

• Management expects continued volatility due to geopolitical risks, especially in the Middle East and Strait of Hormuz.

• Portfolio optimization, transformation initiatives, and selective growth investments, especially in China, remain key priorities.