ADES (2382) Q4 2025 earnings summary

Executive summary

• Achieved record backlog of SAR 34.71bn, driven by contract renewals, new awards, and the Shelf Drilling acquisition, providing multi-year revenue visibility.

• Revenue grew 7.9% year-over-year to SAR 6,689mn in FY 2025, with EBITDA up 17.0% to SAR 3,553mn (margin 53.1%), supported by offshore operations ramp-up and disciplined cost management.

• Expanded global footprint to 20 countries with 123 rigs, including new entries into Brazil, Cameroon, Brunei, Norway, Italy, the Netherlands, and the UK.

• Maintained high operational utilization at 97.9% and industry-leading safety with TRIR of 0.08, outperforming the IADC industry standard.

• Completed Shelf Drilling acquisition, expanding the fleet to 83 offshore and 40 onshore rigs, and targeting USD 50–60mn (SAR 188–225mn) in operational synergies by 2027.

Financial highlights

• FY 2025 revenue rose 7.9% year-over-year to SAR 6,689mn; EBITDA up 17.0% to SAR 3,553mn (margin 53.1%).

• Net profit increased 2.0% to SAR 833mn, with a net margin of 12.5%.

• Free cash flow grew 9.9% to SAR 2,850mn; cash conversion at 80%.

• Operating cash flow before working capital rose 6.2% year-over-year to SAR 3,359.1mn.

• Group equity increased 4.2% to SAR 6.81bn.

Outlook and guidance

• FY 2026 EBITDA guidance: SAR 4.50–4.87bn, up 26–37% year-over-year, supported by higher utilization and Shelf integration.

• Board approved/proposes 2H-2025 dividend of SAR 265mn, bringing total FY 2025 dividend to SAR 496.2mn.

• Integration of Shelf Drilling to unlock SAR 188–225mn in operational synergies by 2027.

• Market environment remains tight, with global jack-up utilization above 90% and limited new supply.

• Continued focus on operational excellence, safety, and expanding global presence.