SABIC (2010) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $9.5B (SAR 35.56 billion), up 3% sequentially, with improved sales volumes and cost discipline, but flat or slightly down year-over-year.

• Adjusted EBITDA rose 40% quarter-over-quarter to $1.4B (SAR 5.22 billion), with margin improving to 15% as transformation and digital initiatives advanced.

• Adjusted net income rebounded to $129M (SAR 0.48 billion), but reported net loss was $1.1B (SAR 4.07 billion) due to Teesside closure and impairment charges.

• Six key highlights: strong safety record, $1.2B shareholder distribution, Teesside cracker closure, 58 new products, quality awards, and progress on major projects in China and Saudi Arabia.

• Transformation program targets $3B recurring annual EBITDA by 2030, focusing on cost excellence, value creation, and digital transformation (54% ERP upgrade, 42% AI adoption at sites, 490+ AI models deployed).

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; margin at 15%.

• Adjusted net income: $129M (SAR 0.48 billion), up from a loss last quarter; 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 as of June 30, 2025: SAR 2.71 billion.

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

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

Outlook and guidance

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

• Global GDP growth for 2025 revised/estimated at 2.3%.

• Demand expected to remain stable or mixed across most product sectors in Q3.