Elm (7203) Q2 2026 earnings summary

Executive summary

• Achieved strong revenue and profit growth in H1 2026, with continued momentum across strategic priorities and government platforms.

• Revenue for the six months ended June 30, 2026 reached SAR 4,997.1 million, up from SAR 4,122.2 million year-over-year.

• Net profit for the six months was SAR 1,166.2 million, compared to SAR 1,085.4 million in the prior year.

• Integration with Thiqah and acquisition of Sahel Al Madar Trading Company increased ownership to 60%, consolidating results from February 2026 and driving contract wins and revenue synergies.

• Interim dividends of SAR 350.4 million were distributed in March 2026, with an additional SAR 390 million approved post-period.

Financial highlights

• H1 2026 revenue reached 4,997 million, up 21.2% year-over-year; gross profit was 2,079 million, up 23.1%.

• EBIT grew 15.5% to 1,138 million; net profit increased 7.5% to 1,166 million.

• Earnings per share (basic) for the six months was SAR 15.01, up from SAR 13.95.

• Cash and cash equivalents at June 30, 2026 stood at SAR 1,574.6 million.

• Total assets increased to SAR 12,004.6 million from SAR 11,887.0 million at year-end 2025.

Outlook and guidance

• 2026 revenue growth guidance remains at 17–19%, with H1 2026 actual at 21%.

• EBIT margin guidance unchanged at 21–23%, with H1 2026 actual at 23%.

• Cash flow from operating activities as a percentage of net income guided at 85–95%, but H1 2026 actual was 35%.

• The group continues to monitor regional geopolitical developments, with no material impact to date.

• IFRS 18 will be adopted in 2027, expected to affect presentation and disclosure but not net profit.