Zain saw is net income double last quarter

More companies are out with their quarterly earnings — we have earnings from Zain KSA, Elm Company, ABI, and Dar Alarkan.

Zain’s net income more than doubles on cost relief and one-offs

Mobile Telecommunication (Zain KSA) reported a 116.1% y-o-y surge in net income to SAR 201 mn in 1Q 2026, according to a Tadawul disclosure. This came despite a 1.3% y-o-y dip in revenue to SAR 2.7 bn during the same period.

Behind the jump in net income: Net income was mainly lifted by a SAR 98 mn one-off gain from the Universal Service Fund, which, if excluded, would put income growth at 11% y-o-y. Other drivers included a stronger revenue mix, a 9.8% decline in cost of revenue driven by lower device costs, and a 15% reduction in finance costs following debt optimization and repayments.

Zain has been tidying up its debt: Zain has been on an 18-month debt cleanup that’s starting to hit the books. By the time 1Q rolled around, Zain had already replaced its aging, expensive debt with two major shariah-compliant facilities — a SAR 5.5 bn murabaha facility from a five-bank syndicate to refinance SAR 4.7 bn in maturing debt on “favorable terms,” and a SAR SAR 1.9 bn Al Rajhi loan that refinanced its outstanding Finance Ministry facility.

Elm sees strong 1Q growth despite higher costs

PIF-owned digital giant Elm Company posted a strong start to 2026, with net income up 32.5% y-o-y to SAR 656 mn and revenue up 31.7% y-o-y to SAR 2.5 bn.

Broad-based growth: Business process outsourcing led the charge with a 43.2% y-o-y revenue surge, followed by a 30.4% increase in professional services. The digital business segment — the company's largest contributor — remained robust, posting a 28% rise in inflows.

ABI flourishes on margin gains

Advanced Building Industries’ net income climbed 30.7% y-o-y to SAR 31 mn in 1Q, lifted by stronger steel and insulation margins, offsetting legacy project exits, according to its Tadawul disclosure. Revenue fell 11.3% y-o-y to SAR 1.3 bn in 1Q, weighed down by a 63.4% decline in construction segment revenue and a 6.3% drop in AC segment sales.

ABI sacrificed seasonal revenue to clean house: The drop in 2025 revenue — which extended to 2026 — was driven by a strategy to exit inherited projects that suffered from poor execution and high contractual costs, CEO Ahmed Al-Zaatari earlier told CNBC Arabia (watch, runtime 9:38).

Sales momentum and leaner operations propel Dar Alarkan

Dar Alarkan Real Estate Development kicked off 2026 with a double-digit jump in its bottom line, reporting a net income of SAR 260.2 mn in 1Q, up 24.3% y-o-y, according to its Tadawul disclosure and financial statements (pdf). Revenue climbed 24.8% y-o-y to SAR 1.2 bn, supported by a surge in property sales alongside higher returns from Islamic Murabaha deposits and improved cost management.

The biggest growth engines? Property development remained the group’s dominant segment, generating SAR 1.1 bn in revenue (93% of the total) at a healthy 45% margin. While the leasing segment contributed a smaller 3.5% to the top line, it stood out in efficiency with a hefty 79.7% gross margin.

And the funding behind them: Total finance costs jumped 35.5% y-o-y to SAR 276.3 mn, reflecting a greater reliance on debt and sukuk financing to bridge the gap between operational income and its expanding project pipeline.

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