SADR LOGISTICS-

Saudi-based Sadr Logistics’ net losses widened by some 94% y-o-y, recording SAR 7.3 mn in losses for 2Q 2025, according to a disclosure to Tadawul. The company’s top line surged 50.2% y-o-y, however, reaching around SAR 32 mn for the same period. Management attributes the revenue surge to higher returns in its steel, logistics, and wood sectors.

In 1H terms: Sadr’s net losses increased by 35.4% y-o-y in the six-month period, reaching SAR 7.2 mn in losses, whereas its revenues for the period climbed 24.2% y-o-y, reaching SAR 65.7 mn.

Why did income drop? The main reasons for the steep income drop were the creation of an additional SAR 5.9 mn provision for doubtful debts, a 10% rise in selling and marketing expenses, a 15% increase in general and administrative expenses, and a drop in investment income, according to the disclosure.

ARAMEX-

Aramex’s profitability hit by shifts in global trade: Regional logistics giant Aramex saw its normalized net income — excluding one-off expenses associated with restructuring and its acquisition by AD Ports — rise 87% y-o-y to AED 5.4 mn, according to its earnings release (pdf). On a non-normalized basis, it turned a loss of AED 9.3 mn. The logistics firm’s revenues remained flat at AED 1.5 bn, as the company shifted its product mix amid a broader nearshoring trend, which has hit its international business but boosted its domestic segment.

In 1H 2025, normalized net income came in at AED 32.9 mn, down 34% y-o-y, while revenues inched up 1% y-o-y to AED 3 bn.

Breaking it down: Revenues from domestic operations were up 12% y-o-y in 2Q, and 13% y-o-y in 1H 2025. Meanwhile, international revenues fell 16% y-o-y during the quarter, and 15% y-o-y in 1H 2025.

ALSO- MSCI is removing Aramex from its Emerging Markets Small Cap Index, as of market close on Tuesday, 26 August, according to its index review (pdf). The removal comes as the firm’s profitability takes a hit amid broader shifts in trade flows, and after its acquisition by AD Ports.

Why it matters: Being on an MSCI index basically means the company has met certain global standards for metrics, including market cap and liquidity, which puts it on the radar of international investors. It’s also a way for getting a stock picked up by global funds and ETFs, which could lead to stronger investor demand for the stock, giving the constituent more visibility and credibility in international markets.

SAL-

Saudi Logistics Services (SAL) saw its net income rise 4% y-o-y to SAR 162 mn in 2Q 2025, according to an earnings release (pdf) and a disclosure on Tadawul released on Thursday. The firm’s top line declined 3% y-o-y to SAR 394 mn for the same period. SAL’s Logistics Division’s lower revenues — caused by a shift in project timelines — were the main reason for top line decline, management said.

In 1H terms: SAL’s bottom line shrank 13.3% y-o-y to SAR 315 mn for the year’s first six months, whereas its revenues slipped 9% y-o-y to SAR 778 in the same period.

Behind the income slump: Management attributed the drop-off in 1H’s net income to a decline in the Handling Division’s revenue, as handling levels returned to normal after the exceptionally high volumes in 1Q 2024 caused by supply chain disruptions in the Red Sea. The aforementioned drop in returns of the Logistics Division also had cascading effects on net income.

SAL is having a shaky 2025: SAL saw its net income decline around 26.6% y-o-y to SAR 153 mn for 1Q 2025, which management attributed to a decline in its cargo handling revenues, a shift in the product mix, and the allocation of higher provisions for expected credit loss in its logistics division.

Looking ahead: SAL is maintaining a positive outlook, expecting an increase in demand for integrated logistics solutions, fueled by the expansion of e-commerce, accelerating industrial activity, and enhanced regional connectivity, CEO Omar bin Talal Hariri said.

ADNOC DISTRIBUTION –

Adnoc Distribution posted an 8.6% y-o-y growth in its net income to AED 677 mn in 2Q 2025 as fuel volumes grew, with sales rising by a record 10.3% y-o-y, according to its analysis report (pdf) published on Thursday. Net income was also buoyed by lower finance costs. The firm’s 2Q revenues fell 1.7% y-o-y to AED 8.6 bn due to a global decline in crude oil prices, though it was partially offset by the growth in fuel volumes and bigger contributions from its non-fuel retail segment.

In 1H 2025, the company recorded a double-digit bottom line growth of 12.2% y-o-y to AED 1.3 bn, while revenues declined by 2.4% y-o-y to AED 17.1 bn. Adnoc Distribution also reported its highest first-half EBITDA at AED 2.1 bn with a y-o-y growth of 10%.

Looking ahead:Adnoc’s fuel retail arm now expects to add 60-70 new stations to its regional network by year-end, after adding 47 stations and achieving its earlier full-year guidance in 1H 2025, the report said.

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