SABIC returns to profitability with $220m adjusted net income in Q3

By the Editorial Team · Monday, October 26, 2026

Saudi Basic Industries Corp. (SABIC) returned to profitability in Q3 2026, reporting an adjusted net income of SR840 million ($220 million) driven by a 14% revenue increase and significant gains in EBITDA and EBIT. The company plans to expand production capacity with a new industrial complex and continues strategic initiatives to enhance local content and optimize its portfolio amidst regional and global challenges.

Saudi Basic Industries Corp. (SABIC) reported a return to profitability in the third quarter of 2026, posting an adjusted net income of SR840 million ($220 million), reversing a loss in the prior quarter. The petrochemicals producer’s improved performance reflects rising revenue and earnings amid ongoing market and geopolitical challenges in the Middle East.

For the three months ending September 30, SABIC’s revenue increased 14 percent quarter-on-quarter to SR28.17 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 40 percent to SR4.75 billion, while adjusted earnings before interest and taxes (EBIT) surged 434 percent to SR2.17 billion. Adjusted earnings per share reached SR0.28, compared with a loss per share of SR0.13 in the second quarter. Net debt as of September 30 stood at SR3.03 billion, a slight increase from SR2.73 billion three months earlier.

The company’s third-quarter results come amid continued regional instability and global market pressures affecting the chemicals industry. SABIC’s CEO and executive board member Faisal M. Alfaqeet described the quarter’s outcome as “exceptional resilience” despite geopolitical tensions and economic headwinds. He emphasized the company’s ongoing focus on strategic priorities such as portfolio optimization, business transformation, and selective growth to ensure long-term profitability and shareholder value.

SABIC also announced a series of initiatives underscoring its expansion plans and operational resilience. SABIC Agri-Nutrients has made a final investment decision to develop a new industrial complex in Saudi Arabia, with projected annual capacities of 1.2 million tonnes of ammonia and 2.6 million tonnes of urea. This expansion is expected to increase the company’s urea production capacity by 54 percent relative to current levels.

The company reported that it has realized SR3.56 billion toward its 2030 target of SR11.3 billion in positive recurring EBITDA from its ongoing transformation programs. Additionally, SABIC received a 2025 Local Content Certificate from Saudi Arabia’s Local Content and Government Procurement Authority, achieving a local content score above 61 percent—an improvement exceeding 9 percent compared with 2024. SABIC attributed this progress in part to agreements supporting local industries, including a recent memorandum of understanding with Lenovo.

Further developments include the Ministry of Energy’s allocation of feedstock for a new methanol plant in Jubail with an annual production capacity of 1.8 million tonnes. As part of its portfolio optimization efforts, SABIC finalized the sale of its Engineering Thermoplastics business in the Americas and Europe for an enterprise value of $450 million.

These results and strategic moves highlight SABIC’s efforts to strengthen its financial position and adapt to a complex operating environment, positioning the company for sustained growth in the global petrochemicals sector.

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