Arabian Drilling Company (2381) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was SAR 822 million, broadly flat quarter-on-quarter and down 9.8% year-over-year, reflecting normalization of rig move activity and lower land utilization.

• EBITDA reached SAR 289 million, up 9.7% sequentially but down 24.1% year-over-year, with a margin of 35.2%.

• Net income returned to positive at SAR 7.1 million, a significant improvement from a net loss in Q4 2025, but down 90.6% year-over-year.

• Backlog reached a record SAR 12.5 billion, up 31% year-over-year, with an average contract duration of 3.3 years and a book-to-bill ratio of 3.7x.

• Rig utilization improved to 81.7% as four rigs resumed operations.

Financial highlights

• Revenue: SAR 822 million, down 9.8% year-over-year; flat quarter-on-quarter.

• EBITDA: SAR 289 million, up 9.7% sequentially, down 24.1% year-over-year; margin at 35.2%.

• Net income: SAR 7.1 million, up from a net loss of SAR 34 million in Q4 2025 (excluding one-off impairment), down 90.6% year-over-year.

• CapEx was SAR 175 million, up 8% quarter-on-quarter, but down 39.6% year-over-year, focused on rig reactivations and sustaining investments.

• Net debt declined 13.1% year-over-year to SAR 2.4 billion; net debt to EBITDA stable at 2x.

• Operating cash flow improved sequentially but declined 22.3% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected to decline up to 12% sequentially due to temporary offshore rig suspensions and delayed rig startups.

• Full offshore utilization now expected in the second half of 2026.

• Full-year 2026 CapEx guidance revised to approximately SAR 700 million.

• Confident in renewing all 18 contracts due in 2026, with 11 related to the Gas LSTK tender.

• Cost optimization program expected to deliver sustainable savings and support margin recovery.