A mixed bag for the bottom line

Tax swing drives Stc’s 3Q bottom-line decline

Saudi Telecom Company (stc) saw net income fall 12.4% y-o-y to SAR 3.6 bn in 3Q 2026, according to a Tadawul filing, though the drop was largely due to a Zakat-and-tax swing from a SAR 157 mn benefit last year to a SAR 156 mn charge in the quarter. Revenue rose 3.7% y-o-y to SAR 19.99 bn, driven by an 18.5% jump in subsidiaries’ revenue.

The 9M read: Over nine months, net income fell 5.7% y-o-y to SAR 10.9 bn. Revenue rose 3.7% to SAR 60.1 bn. Here too, the reported dip is the Zakat base effect: last year carried a SAR 683 mn positive contribution against a SAR 357 mn charge this year.

The group is leaning on subsidiaries and infrastructure, not its core. stc KSA revenue grew just 1% over nine months, as commercial (up 2%) and carrier-and-wholesale (up 5.1%) offset a 2.4% decline in the business unit, while subsidiaries’ revenue jumped 9%, led by solutions, STC Bank, and sirar, with subsidiary gross income up 39.4%. The subscriber base kept expanding: mobile up 4.8% y-o-y to 30.6 mn, fixed up 4% to 6.2 mn, and fiber-connected households up 7% to 3.95 mn, supported by a 31.5% rise in 5G towers to 12,380.

Two balance-sheet items to watch: Capex rose 27.4% to SAR 7.75 bn as stc builds out 5G and fiber, and net debt jumped to SAR 15.42 bn from SAR 3.13 bn, lifting net-debt-to-EBITDA to 0.61x from 0.13x, still conservative, but a fast climb nonetheless. stc also raised its Telefonica stake to 9.97% from 4.97% during the period.

Dividends: Stc will distribute SAR 2.74 bn in 3Q 2026 interim dividends, equivalent to SAR 0.55 per share, in line with its dividend policy, it said in a separate filing. Payments are scheduled for 19 November 19.

Higher VLCC freight rates lift Bahri’s bottom line almost 10x

Higher VLCC freight rates and more chartered-in tankers drove Bahri’s 3Q earnings up nearly tenfold. Net income at Saudi Arabia’s National Shipping Company (Bahri) rose 891% y-o-y to SAR 5.1 bn in 3Q, while revenue jumped 504% to SAR 14.8 bn, according to its earnings release (pdf).

Bahri Oil drove most of the increase: The tanker unit’s revenue rose 913% y-o-y to SAR 13.3 bn, and the company credited higher realized freight rates for very large crude carriers (VLCCs), driven by regional disruptions and heightened maritime security risks, alongside a significant increase in charter-in activity. Integrated logistics revenue roughly doubled to SAR 497 mn, chemicals and products rose 5% to SAR 793 mn, and dry bulk climbed 38% to SAR 149 mn.

3Q accounted for about half of Bahri’s 9M net income, by our math: Net income for 9M rose 587% y-o-y to SAR 9.98 bn, and revenue climbed 268% to SAR 26.1 bn. Bahri Oil accounted for SAR 18 bn of the revenue increase, followed by integrated logistics at SAR 429 mn, chemicals at SAR 270 mn, and dry bulk at SAR 139 mn, according to Tadawul disclosure.

Conflict-related incidents affected four of Bahri’s vessels during 9M, and two crew members were killed. Two of the vessels have returned to service after repairs and two remain under repair. Bahri operated 109 vessels at end-September, 107 owned and two on long-term lease, against 117 a year earlier, after selling a VLCC and a chemical tanker for net proceeds of SAR 270 mn.

Bahri has ordered three VLCCs from Saudi shipbuilder International Maritime Industries (IMI) for SAR 1.69 bn, due in 2029-2030.It added three second-hand medium gas carriers for LPG and ammonia. The first was delivered in September, and the other two are due in 4Q 2026 and 1Q 2027. It ordered two RoCon (roll-on/roll-off and container) vessels for SAR 776 mn in 3Q for delivery in 2030. After the quarter closed, it signed a SAR 1.69 bn agreement with Saudi shipbuilder International Maritime Industries (IMI) for three VLCCs.

Petro Rabigh returns to black

Petro Rabigh swung to net income of SAR 2.6 bn in 3Q 2026, from a SAR 1.24 bn loss a year earlier, according to a Tadawul filing. The turnaround came off the back of stronger refined-product margins, global supply-demand imbalances, improved plant utilization and lower finance costs. Revenue jumped 82.9% y-o-y to SAR 16.8 bn over the same period on higher average selling prices and improved plant utilization.

Nine-month earnings also rebounded: Net income reached SAR 6.7 bn, reversing a SAR 3.3 bn loss a year earlier, while revenue more than doubled, rising 113.6% y-o-y to SAR 52 bn.

Zain’s operating costs weigh on earnings

Zain KSA’s net income fell 9.8% y-o-y to SAR 138 mn in 3Q 2026, despite a 3% increase in revenue to SAR 2.8 bn, the company said in a Tadawul disclosure. Higher operating expenses from seasonal marketing and costs from subsidiaries acquired at the end of 2025 weighed on earnings despite gains in consumer 5G and wholesale services.

For the first nine months, net income rose 45% y-o-y to SAR 541 mn, while revenue was nearly flat, up 0.6% to SAR 8.1 bn as a richer revenue mix offset lower handset sales. The company attributed the earnings growth to improved revenue mix, lower finance costs and SAR 127 mn in Universal Service Fund income. Excluding one-off gains, net income would have risen 11% y-o-y, Zain said.

Nahdi’s net income up in 3Q

Nahdi Medical posted a 6.5% y-o-y increase in net income to SAR 171.8 mn in 3Q, as revenue grew 9.4% y-o-y to SAR 2.7 bn, according to its earnings release (pdf). Growth was driven by retail, with contributions from healthcare (23.9%) and regional expansion (31.4%) also buoying results.

On a 9M basis, net income slipped 4.9% to SAR 622.7 mn, as narrower gross margins and higher operating expenses weighed on earnings. Revenue, meanwhile, increased 7% y-o-y to SAR 8.16 bn, thanks to gains in healthcare (32.1%), retail (5.7%) and regional expansion (29.1%).

Americana’s 3Q earnings surge on stronger sales

Americana Restaurants’ 3Q net income sped past revenue, jumping 63% y-o-y to USD 70 mn while revenue grew 14.4% y-o-y to USD 712.3 mn on 8.6% like-for-like sales growth and new restaurants, the company said in its earnings release (pdf).

Over 9M, the story is similar, but bigger: Net income rose 60.4% y-o-y to USD 217.2 mn, outpacing 12.9% revenue growth to a record USD 2.1 bn for the period. Beyond 7% like-for-like growth and new restaurants, procurement efficiencies and cost management turned higher sales into faster earnings growth, more than offsetting input-cost inflation the company tied to geopolitical conditions.

Expanding footprint: Americana added 112 net new restaurants over the 12 months to 30 September, bringing its total to almost 2.8k across 12 markets. Looking ahead, it expects to add another 120-130 net new stores by year-end, while its exclusive development agreement to bring Taco Bell to the UAE opens another avenue for growth.