ACWA Power (2082) Q2 2025 earnings summary

Executive summary

• Achieved significant growth in the first half of 2025, with operating income up 59%–60% year-over-year and adjusted net profit rising 62% after excluding non-recurring items.

• Completed a SAR 7.125 billion ($1.9 billion) capital raise, oversubscribed by nearly six times, with strong foreign and institutional investor participation.

• Expanded internationally with the first desalination project outside the Middle East, new partnerships in Southeast Asia, and a green hydrogen corridor to Europe.

• Signed the world's largest single-block PPA (15 GW) in Saudi Arabia and brought 3.3 GW of new power and 600,000 m³/day water desalination capacity online.

• Launched green hydrogen and ammonia initiatives to support future growth and decarbonization.

Financial highlights

• Operating income rose 59% to SAR 2,207 million compared to 6M 2024.

• Adjusted net profit increased 62% year-over-year to SAR 1,172 million; reported net profit was SAR 909 million, down 1.9% due to non-routine items.

• Parent operating cash flow grew 52.3% to SAR 828 million.

• Cash position at end of June 2025 was SAR 2.5 billion, with an additional SAR 7 billion collected from the capital raise shortly after.

• Achieved SAR 2.4 billion in financial closes for two Uzbekistan projects.

Outlook and guidance

• Targeting SAR 250 billion in investments by 2030, up from SAR 117 billion currently, and aiming to double business scale again in five years.

• Expanding internationally, including new partnerships in Southeast Asia and a green hydrogen corridor to Europe.

• Expecting a heavy period of financial closes in the next six months, with 60-70% of signed PPAs aiming for financial close within 2025.

• Saudi Arabia's renewable energy program aims for 20 GW per year, with 70% under the PIF program delivered by the company.

• Net debt to POCF ratio expected to remain elevated (~7x) over the next 18 months due to ongoing growth, with plans to manage through capital recycling, divestments, and new debt instruments.