SABIC (2010) investor relations material

Executive summary

• Q2 2026 revenue was $6.62 billion (SAR 24.81 billion), down 5% quarter-on-quarter, driven by a 33% drop in sales volumes but partially offset by a 41% increase in prices due to supply chain disruptions and higher energy prices.

• Adjusted EBITDA fell 18% quarter-on-quarter to $900 million (SAR 3.38 billion), with a margin of 13.6%, and adjusted net income turned negative at a loss of $100 million (SAR 0.38 billion).

• Strategic focus remained on operational excellence, safety, portfolio optimization, and disciplined execution, with a best-in-class total recordable incident rate of 0.08 and 32 new product solutions launched.

• SAR 880 million ($880 million) in dividends was announced for H1 2026, reflecting a prudent and balanced capital allocation approach amid ongoing uncertainties.

• The company celebrated its 50th anniversary and signed a MoU with Ceer to explore advanced materials for electric vehicles.

Financial highlights

• Q2 2026 revenue declined 5% quarter-on-quarter to $6.62 billion (SAR 24.81 billion), mainly due to a 33% drop in sales volume, but prices rose 41%.

• Adjusted EBITDA margin decreased to 13.6% from 15.9% in Q1 2026; adjusted EBIT dropped 72% to $110 million (SAR 0.41 billion).

• Adjusted net loss was $100 million (SAR 0.38 billion), compared to a profit in the previous quarter.

• Free cash flow was negative $370 million (SAR 1.40 billion) in Q2 2026, reflecting higher working capital.

• Net debt to adjusted EBITDA stood at 0.2x, indicating strong financial flexibility.

Outlook and guidance

• Portfolio optimization and transformation programs are on track, targeting $3 billion (SAR 3 billion) recurring annual EBITDA impact by 2030.

• Planned capital investment of $3.5–4 billion (SAR 3.5–4 billion) will prioritize long-term value creation projects.

• Continued focus on selective growth opportunities, including the SABIC Fujian complex and strategic partnerships in China.

• Management expects gradual recovery in industry operating rates and demand, especially in emerging Asia.