ADES Holding stock: Revenue rises 44%, net profit falls 22.1%

ADES Holding reported a sharp expansion in nine-month revenue alongside weaker profitability for the period ended September 30, 2026. In its 9M 2026 earnings release dated November 9, the Saudi drilling group said revenue rose 44.0% year over year to SAR 6.7731 billion, while EBITDA increased 25.1% to SAR 3.1719 billion. Net profit fell 22.1% to SAR 473.3 million.

Growth comes with margin pressure

ADES attributed the revenue increase to the Shelf acquisition, stronger offshore activity and higher contributions from its Egyptian production model. The EBITDA margin narrowed to 46.8% from 53.9% a year earlier as Shelf operations carried lower margins and temporary regional rig suspensions weighed on performance.

Non-recurring insurance-related expenses also affected net profit. A one-off bargain gain linked to the Saipem acquisition partly offset those pressures, while operating cash flow before working-capital changes rose 19.1% to SAR 2.9183 billion.

Backlog supports future activity

Contracted backlog stood at SAR 37.69 billion as of September 30, up from SAR 34.71 billion at the end of 2025. The weighted average remaining contract tenor was 4.39 years, and fleet utilization reached 98.0% during the first nine months.

The company completed the acquisition of Saipem's shallow-water drilling activities in September, adding five premium jackups and approximately SAR 3.7 billion of backlog at completion. New awards in India for two jackup rigs are expected to begin contributing by the end of the first quarter of 2027.

Guidance remains unchanged

ADES reiterated its full-year 2026 EBITDA guidance of SAR 4.50 billion to SAR 4.87 billion. Management expects margins to recover gradually as the Shelf integration progresses and operational synergies develop, while the group focuses on backlog execution, cash generation and deleveraging.

International drilling platform

Headquartered in Al Khobar, Saudi Arabia, ADES provides offshore and onshore oil and gas drilling services to national and international energy companies. Its operations span more than 20 countries, with offshore jackups, onshore rigs, a jackup barge and a mobile offshore production unit forming the core fleet. The company serves markets across the Middle East, Southeast Asia, India, West and Central Africa, the Mediterranean, Latin America and the North Sea.

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