SABIC (2010) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $9.5B (SAR 35.56 billion), up 3% sequentially, with adjusted EBITDA of $1.4B (SAR 5.22 billion), up 40% quarter-over-quarter, driven by improved sales volumes and cost discipline.

• Adjusted net income was $129M (SAR 0.48 billion), rebounding from a prior loss, while reported net loss was $1.1B (SAR 4.07 billion) due to Teesside closure and impairment charges.

• Portfolio optimization included asset exits, Teesside cracker closure, Hadeed and ALBA divestitures, and capital redeployment to higher-return opportunities.

• Digital transformation advanced, with 42% of manufacturing sites using AI tools and over 490 AI models deployed.

• Board approved $1.2B (SAR 4.5 billion) shareholder distribution for H1 2025, reflecting disciplined capital allocation.

Financial highlights

• Q2 2025 revenue: $9.5B (SAR 35.56 billion), up 3% sequentially; adjusted EBITDA: $1.4B (SAR 5.22 billion), up 40% quarter-over-quarter; adjusted EBITDA margin at 15%.

• Adjusted net income: $129M (SAR 0.48 billion); reported net loss: $1.1B (SAR 4.07 billion) due to impairments.

• Operating cash flow for H1 2025: $894M; free cash flow for Q2: $230M; net cash position at SAR 2.71 billion as of June 30, 2025.

• Net debt/Adjusted EBITDA: -0.13x, indicating a strong balance sheet.

• Synergies from Saudi Aramco association totaled SAR 10.6 billion since 2020, with SAR 0.94 billion realized in Q2 2025.

Outlook and guidance

• 2025 capital investment expected at $3.0–3.5B, focusing on growth, operational excellence, and transformation.

• Global GDP growth for 2025 revised to 2.3%; demand expected to remain stable across most product sectors in Q3.

• Interim cash dividends of SAR 4.5 billion (SAR 1.50/share) declared for H1 2025, to be recognized in Q3.