Elm and Saudi Re climb as Saudi Chemical slides in 3Q

Digital business drives Elm’s 3Q

Elm Company’s net income rose 39.2% y-o-y to SAR 778 mn in 3Q, nearly four times the pace of revenue, as margins widened, according to a Tadawul filing. Revenue grew 10.1% to SAR 2.8 bn, on a 19.9% climb in digital business.

Behind the numbers: The higher-margin digital business segment drove the quarter, lifting gross income 18.3% to SAR 1.2 bn. Operating expenses fell 2.8% on lower G&A, credit-loss, and R&D costs, partly offset by higher sales and marketing spend. Associate and JV results swung to a SAR 4 mn net income from a SAR 6 mn loss, and higher Murabaha-deposit income helped. The segment’s gains also covered a 14.2% y-o-y drop in business process outsourcing revenue and a 2.1% dip in professional services over the period.

On a 9M basis, net income rose 18.4% y-o-y to SAR 1.9 bn on revenue of SAR 7.8 bn, up 17% y-o-y, with all three segments growing over nine months, digital business up 21.4%, business process outsourcing up 5.8%, and professional services up 7.4%.

Lower volumes and higher costs hit Saudi Chemical

Saudi Chemical Co. posted a 26% y-o-y drop in net income to SAR 64.6 mn in 3Q 2026, as lower sales volumes ran into higher input and shipping costs, it said in a Tadawul disclosure. Revenue slipped 5.1% y-o-y to SAR 1.7 bn on the drop in volumes.

Raw materials and freight ate into the numbers: Gross income dropped 14.4% to SAR 195.5 mn, squeezed by higher raw-material and shipping costs — the latter lifted by regional tensions that have pushed up Gulf freight and ins. rates — with a bigger Zakat and tax provision adding to the pressure. Operating income fell 23.9% to SAR 95.1 mn.

The 9M read holds up better: Over nine months, net income slipped just 2.6% y-o-y to SAR 232.4 mn on revenue of SAR 5.27 bn (up 1.3% y-o-y), as a stronger first half offset the 3Q softness. The same pressures ran through the period — higher raw-material and shipping costs and a bigger Zakat charge — partly offset by lower finance costs and a derivative revaluation gain.

Underwriting carries Saudi Re’s earnings

Saudi Reinsurance Co. (Saudi Re) saw net income rise 5.9% y-o-y to SAR 32.6 mn in 3Q 2026, while its ins. revenue jumped 77.1% y-o-y to SAR 813.1 mn on a bigger book, it said in a Tadawul filing.

The quarter’s growth came from underwriting. The ins. service result rose 55.4% y-o-y to SAR 184.4 mn on the larger book, helped by lower other operating expenses (down 54%) and reduced net ins. finance expenses (down 19%). Two things worked against the bottom line: net investment income fell 25.6% to SAR 28.3 mn, and the ins. result slipped 3% — hence the modest bottom line growth despite the revenue surge.

Over nine months, net income rose 63.5% y-o-y to SAR 194.2 mn on ins. revenue of SAR 2.1 bn, up 73.3% y-o-y. That figure carries a SAR 53.5 mn non-recurring surplus reversal from 2Q, so some of the nine-month jump is from that one-off.