Protecting margins, strengthening cash flow, and funding strategic growth with financial discipline
Dear shareholders,
SAL delivered a resilient financial performance in 2025. Against a backdrop of normalizing market conditions, we executed with discipline – protecting margins, enhancing cash generation, and advancing the investments required to support future operational capacity. With an exceptional 2024 base, our focus was to maintain earnings quality and strengthen structural efficiency.
Our priorities were clear: safeguard profitability, convert a greater share of earnings into cash, and fund strategic projects without stretching the balance sheet. We met each of these objectives.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
|
2025 X ‘000 |
2024 X ‘000 |
Variance X ‘000 |
Percentage |
|
|
Revenue |
1,708,430 |
1,633,957 |
74,473 |
5% |
|
Cost of revenue |
(746,144) |
(718,742) |
(27,402) |
4% |
|
Gross Profit |
962,286 |
915,215 |
47,071 |
5% |
|
Other income |
2,044 |
1,572 |
472 |
30% |
|
Selling and marketing expenses |
(41,553) |
(48,440) |
6,887 |
-14% |
|
General and administrative expenses |
(196,082) |
(175,558) |
(20,524) |
12% |
|
Allowance for expected credit losses |
567 |
16,627 |
(16,060) |
-97% |
|
Operating Profit |
727,262 |
709,416 |
17,846 |
3% |
|
Finance income |
67,239 |
59,495 |
7,744 |
13% |
|
Finance cost |
(57,811) |
(74,434) |
16,623 |
-22% |
|
Profit Before Zakat |
736,690 |
694,477 |
42,213 |
6% |
|
Zakat expense |
(38,800) |
(33,042) |
(5,758) |
17% |
|
Profit for the Year |
697,890 |
661,435 |
36,455 |
6% |
|
Remeasurement gain on employees’ benefit obligations |
395 |
347 |
48 |
14% |
|
Total Comprehensive Income for the Year |
698,285 |
661,782 |
36,503 |
6% |
|
Basic earnings and diluted earnings per share attributable to ordinary equity holders of the
|
8.72 |
8.27 |
0.46 |
6% |
Performance and Momentum
Group revenue increased by 5% to X 1,708 million, supported by a stable volume environment and a disciplined focus on service mix and productivity. Operating profit rose 3% to X 727 million, while net profit reached X 698 million, a 6% improvement.
Performance improved sequentially, culminating in a strong fourth quarter that demonstrated operating leverage. Steady, deliberate progression each quarter, building on the last. Our financial trajectory tells a story of resilience, recovery, and regained momentum. Our business model enables us to deliver strong operating performance while maintaining a robust balance sheet and making important strategic investments for organic growth.
Operating Profit (EBIT)
Annual Revenue
Profit for the Year
YTD Revenues
Fourth Quarter Performance and Margin Quality
The final quarter of 2025 marked a strong return of momentum for SAL. Revenue for the period rose to X 509 million, driven by an exceptionally strong year-end uplift in Cargo Ground Handling volumes and double-digit growth in the Logistics division.
More importantly, the fourth quarter delivered exactly the operating leverage we built toward: revenue up 25%, EBIT up 31%, and net profit up 42% year-on-year. This performance reaffirms the resilience of our core operations and our ability to convert seasonal demand into high-quality earnings.
Geographic Volume Presence
|
Q4 2025 X ‘000 |
Q4 2024 X ‘000 |
Change |
2025 X ‘000 |
2024 X ‘000 |
Change |
|
|
Revenue |
509,206 |
408,690 |
25% |
1,708,430 |
1,633,957 |
5% |
|
Operating Profit (EBIT) |
202,083 |
154,788 |
31% |
727,262 |
709,416 |
3% |
|
EBIT Margin |
39.7% |
37.9% |
1.8pp |
42.6% |
43.4% |
(0.8pp) |
|
Net Profit |
201,665 |
142,033 |
42% |
697,890 |
661,435 |
6% |
|
EPS |
2.52 |
1.78 |
42% |
8.72 |
8.27 |
6% |
Divisional Performance
Cargo Ground Handling
Cargo Ground Handling remained SAL’s profit engine throughout the year. Even as market conditions normalized, the division continued to deliver high-margin performance, managing year-end peaks with efficiency and converting increased activity into strong financial results through disciplined cost control and an improved service mix.
In Q4 2025, revenue rose to X 423 million, a 27% increase from the prior-year period, supported by robust seasonal activity and solid contributions from core clients. Earnings followed suit, with the quarter’s EBIT margin reaching a record 51.9%, reflecting both strong demand and the operational efficiencies realized across our network.
For the full year, Ground Handling generated X 1,457 million in revenue, a 7% increase, accounting for 85% of SAL’s business. The division sustained an impressive 51.1% EBIT margin for the year, underscoring the consistent quality of its earnings. This performance was supported by steady volume flow, stable client activity, and the continued enhancement of our service portfolio, which further strengthened SAL’s competitive position.
|
Ground Handling |
Q4 2025 X ‘000 |
Q4 2024 X ‘000 |
Change |
2025 X ‘000 |
2024 X ‘000 |
Change |
|
Revenue |
423,322 |
334,491 |
27% |
1,456,582 |
1,362,674 |
7% |
|
Operating Profit (EBIT) |
219,735 |
154,399 |
42% |
744,319 |
686,702 |
8% |
|
EBIT Margin |
51.9% |
46.2% |
5.7pp |
51.1% |
50.4% |
0.7pp |
Logistics
Logistics marked a clear turning point in 2025. After a deliberate reset early in the year, the division
gained traction and delivered double-digit revenue growth in both the third and fourth quarters of
the
year.
Q4 revenue rose to X 86 million (+16% YoY), supported by stronger execution and new contract wins, demonstrating that the strategic groundwork laid since Q2 is now converting into meaningful contribution. While EBIT remains negative, reflecting certain one-off items during the period, alongside the cost of expanding capacity, the trajectory remains positive as activity and scale continue to increase.
The inauguration of the Kaden Distribution Center in Q4 further extends the division’s infrastructure and positions Logistics to deepen its contribution in coming years.
|
Logistics |
Q4 2025 X ‘000 |
Q4 2024 X ‘000 |
Change |
2025 X ‘000 |
2024 X ‘000 |
Change |
|
|
Revenue |
85,884 |
74,199 |
16% |
251,848 |
271,283 |
(7%) |
|
|
Operating Profit (EBIT) |
-13,608 |
389 |
-3,598% |
-13,013 |
22,714 |
-157% |
|
|
EBIT Margin |
-15.8% |
0.5% |
-16.4pp |
-5.2% |
8.4% |
-13.5pp |
Cash Flow, Working Capital, and Balance Sheet
Cash performance was one of the defining strengths of 2025. The Group delivered X 957 million in operating cash flow, reflecting both the quality of earnings and the effectiveness of our collections and cost-management processes. This represents one of the highest cash conversion levels in our recent history and underscores the resilience of our operating model.
A key area of focus was working capital discipline. Net working capital ended at X 103 million (6% of revenue), which is a significant improvement compared to previous periods. This lean position strengthens liquidity and supports capital deployment while preserving day-to-day resilience.
NWC and NWC Margin
The Group ended the year with X 1,542 million in cash and cash equivalents, providing significant financial flexibility. This liquidity allowed us to advance capital projects while maintaining a conservative balance-sheet profile.
Total cash capital expenditure amounted to X 144 million, complemented by X 411 million in right-of-use asset additions. These investments were largely related to the Logistics Zone and new leases in Jeddah and Riyadh. Year-end capital commitments stood at X 806 million, primarily associated with major cargo terminal developments.
Movements in Cash Flows
From a funding perspective, SAL remains prudently leveraged. Interest-bearing long-term loans totaled X 562 million, while lease liabilities were X 1,023 million, reflecting our asset base and long-term concession structures. The Group closed the year with a net debt of X -980 million consistent with our disciplined approach to balance sheet management.
In parallel with our investment program, we continued to deliver returns to shareholders. Cash dividends paid in 2025 totaled X 478 million. Separately, the Board approved a fourth quarter dividend of X 1.89 per share, demonstrating our commitment to maintaining a balanced capital-allocation framework.
Five Years of Sustainable Growth & Financial Strength
The Group’s five-year financial record reflects expanding scale, improving operational efficiency, and disciplined capital management. Revenue, profitability, cash flow, and return metrics have strengthened materially over the period, supported by the ongoing optimization of working capital and a measured approach to investment and leverage.
Working capital efficiency improved to 6% of revenue (X 103 million), supporting ROIC of 33% and ROE of 43% in 2025.
|
2025 X millions |
2024 X millions |
2023 X millions |
2022 X millions |
2021 X millions |
|
|
Operational performance |
|
|
|
|
|
|
Revenue |
1,708 |
1,634 |
1,456 |
1,223 |
962 |
|
EBITDA |
839 |
815 |
721 |
545 |
455 |
|
Operating Profit (EBIT) |
727 |
709 |
586 |
427 |
345 |
|
Profit for the year |
698 |
661 |
510 |
362 |
276 |
|
Balance sheet |
|
|
|
|
|
|
Net working capital |
103 |
221 |
173 |
130 |
134 |
|
Property and equipment |
808 |
720 |
709 |
705 |
659 |
|
Right-of-use asset |
846 |
523* |
886 |
1,213 |
1,284 |
|
Intangible assets |
12 |
12 |
14 |
14 |
15 |
|
Total assets |
3,729 |
3,232 |
3,285 |
3,284 |
3,173 |
|
Total equity |
1,622 |
1,402 |
1,234 |
1,073 |
962 |
|
Total liabilities |
2,107 |
1,830 |
2,051 |
2,210 |
2,211 |
|
Cashflow |
|
|
|
|
|
|
Net cash generated from Operating activities |
957 |
791 |
644 |
556 |
309 |
|
Capital expenditures (CAPEX) |
144 |
68 |
73 |
98 |
148 |
|
Adjusted Free Cash flow |
814 |
724 |
599 |
458 |
161 |
|
Dividends paid |
478 |
494 |
352 |
255 |
100 |
|
Ratios |
|
|
|
|
|
|
EBIT margin |
42.6% |
43.4% |
40.3% |
34.9% |
35.9% |
|
Net Working Capital (NWC) as a % of Revenue |
6% |
14% |
12% |
11% |
14% |
|
Return On Invested Capital (ROIC) |
33% |
35% |
32% |
27% |
24% |
|
Return On Equity (ROE) |
43% |
47% |
41% |
34% |
29% |
|
Net Interest-Bearing Debt (NIBD) (millions) |
(980) |
(745) |
(607) |
(440) |
(372) |
|
Leverage Ratio (NIBD/EBITDA) |
-1.2x |
-0.9x |
-0.8x |
-0.8x |
-0.8x |
*Reduction due to reduced rental costs on key terminal agreements renewed in 2024.
Loans
The following table shows the company’s loans as of December 31, 2025:
(in millions)
|
Lender |
Type of Loan |
Loan Date |
Principal Amount |
Loan Term |
Repaid during 2025 |
Balance as of 31 Dec 2025 |
|
SAB Bank |
Long-term Loan |
September 2021 |
500 |
9 years |
35 |
430 |
|
The Saudi Industrial Development Fund (SIDF) |
Long-term Loan |
May 2023 |
172.3 |
6 years |
22 |
141 |
Closing Perspective
We completed 2025 with stronger results, improved cash conversion, and a leaner working-capital structure. Throughout the year, we remained focused on disciplined execution, cost efficiency, and maintaining high-quality earnings amidst normalized volumes. The operational improvements and strategic investments completed in 2025 have reinforced the Group’s financial resilience and positioned SAL with a solid foundation for the next stage of its development.
As we look ahead to 2026, we enter the year with a stronger operational base, clearer divisional foundations, and the capacity created through our recent investments to support the next phase of SAL’s development.
These outcomes provide a solid platform for continued progress as we sustain our commitment to operational excellence, financial discipline, and value creation for shareholders.
Haydar Ucar
Chief Financial Officer