SABIC Posts 499 Million Riyals in Third-Quarter Profit, Beating Average Forecast
Key Facts
Saudi Basic Industries Corp. (SABIC) reported third-quarter results on October 25, 2026, with revenue of 28.17 billion riyals, up 14% quarter over quarter, according to the company’s statement. Argaam data showed net income of 499 million riyals, up 16% from 430 million riyals in the same period of 2025. The result was above the average net profit forecast of 86.26 million riyals reported by Argaam before the announcement. Revenue, by contrast, fell 3.1% year over year from 29.08 billion riyals in the third quarter of 2025. The comparison shows a clear improvement in activity and profitability from the previous quarter, while revenue remained below its year-earlier level.
Quarter over quarter, adjusted earnings before interest, taxes, depreciation and amortization rose to 4.75 billion riyals, up 40% from the second quarter, according to SABIC’s statement. Adjusted net income also turned to a profit of 840 million riyals, after an adjusted loss of 380 million riyals in the previous quarter. This adjusted measure differs from the net income of 499 million riyals in Argaam’s table; the two figures describe different measures of the result. The quarterly comparison highlights a broad improvement in profitability alongside higher revenue. In the second quarter, the company’s revenue was 24.81 billion riyals, down 5% from the first quarter, while adjusted earnings before interest, taxes, depreciation and amortization were 3.38 billion riyals, down 18% quarter over quarter.
Adjusted earnings before interest and taxes rose to 2.17 billion riyals in the third quarter, up 434% quarter over quarter, according to the Arabic version of the company’s statement. The improvement follows a decline in adjusted earnings before interest, taxes, depreciation and amortization in the second quarter, when the figure was 3.38 billion riyals, down 18% from the first quarter. Commenting on the period’s performance, Chief Executive Dr. Faisal M. Al-Faqeer said, "SABIC demonstrated exceptional resilience despite geopolitical developments and market pressures." He added that the company remains focused on "optimizing the portfolio, transformation, and selective growth" to support long-term profitability and enhance shareholder value. The company’s recordable incident rate was 0.06 in the third quarter, the CEO said in the statement.
For the first nine months of 2026, net income showed a loss of 320 million riyals, compared with a loss of 4.84 billion riyals in the same period of 2025, according to Argaam data. The smaller cumulative loss comes as the third-quarter result in Argaam’s table turned to a profit, although quarterly revenue remained below its year-earlier level. The second-quarter statement described the market environment as marked by geopolitical uncertainty, supply disruptions and higher energy prices. In that quarter, SABIC said the volume of polymers transported from the east of the Kingdom to the west had more than doubled as its supply chain adapted to changing trade routes. The company announced distributions of 3.3 billion riyals in July for the first half of 2026 and said it continues its distribution track record while retaining flexibility to support its strategic priorities.
SABIC linked part of its plans to an operational transformation aimed at improving earnings; it said the program had delivered a recurring positive impact of 3.56 billion riyals on earnings before interest, taxes, depreciation and amortization through October 25, toward a target of 11.3 billion riyals for 2030. Company data also showed net debt rising to 3.03 billion riyals on September 30, from 2.73 billion riyals on June 30. On expansion, SABIC signed a project development agreement in July with Rongsheng Petrochemical to develop the Jintang New Materials project in China’s Zhejiang province. The company said start-up of the Fujian petrochemical complex remains expected during the fourth quarter of 2026. SABIC is scheduled to host a call to discuss its third-quarter results on October 26 at 3:30 p.m. Saudi time, when management will present performance details.