Saudi Telecom Company (7010) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of 77,819 million in 2025, up 2.5% year-over-year, reflecting strong market leadership and effective strategic execution.

• Net profit attributable to equity holders was 14,828 million, up 12.5% excluding non-recurring items, despite a 39.9% year-over-year decrease.

• Maintained robust cash and equivalents of 15.1 bn, supporting long-term growth initiatives.

• Distributed 4.2 per share in dividends, including special cash dividends, with a payout ratio of 141.4% and a dividend yield of 9.8%.

• Expanded digital solutions, grew STC Bank to over 8 million customers, and led regional 6G technology trials.

Financial highlights

• Gross profit rose by 5.2% excluding non-recurring items, reaching 37.7 bn; gross margin improved to 49.2% in Q4-25.

• EBITDA grew by 6.1% excluding non-recurring items, totaling 24,469 million; Q4-25 EBITDA margin improved to 30.0%.

• Operating profit increased by 6.6% excluding non-recurring items; Q4-25 saw a 21.4% YoY rise.

• Capex was 11,795 million, down 1.1% year-over-year.

• Free cash flow declined 18.5% to 6,488 million.

Outlook and guidance

• Strong balance sheet and cash position provide capacity for continued investment and shareholder returns.

• Focus on digital transformation, infrastructure investment, and sustainable value creation aligned with Saudi Vision 2030.

• Ongoing expansion in digital banking, 5G, and 6G technology, with commercial satellite-to-mobile services expected in late 2026.