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Arabian Contracting Services Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months ) | premargin

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	415,649	532,833	-21.992	579,771	-28.308
Gross Profit (Loss)	153,349	286,668	-46.506	255,682	-40.023
Operational Profit (Loss)	118,735	247,980	-52.119	186,237	-36.245
Net Profit (Loss) Attributable to Shareholders of the Issuer	8,881	162,787	-94.544	140,822	-93.693
Total Comprehensive Income Attributable to Shareholders of the Issuer	8,836	162,810	-94.572	135,553	-93.481
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	1,560,426	1,548,497	0.77
Profit (Loss) per Share	0.16	2.96
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Arabian Contracting Services Company recorded a 22% decline in revenues during the first quarter of 2026 compared to the corresponding period of the previous year, mainly due to the ongoing geopolitical tensions in the region, which negatively impacted advertising spending levels.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decline in revenues had a significant impact on net profit during the current quarter compared to the corresponding period of the previous year, resulting in a 95% decrease. This was further impacted by higher operating costs associated with the commencement and handover of several new advertising sites, which led to an increase in lease expenses, depreciation, and finance costs, negatively affecting profit margins during the period.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The decline in revenues during the current quarter compared to the previous quarter by 28% was mainly attributable to the geopolitical tensions in the region.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The decline in revenues had a significant impact on net profit during the current quarter compared to the previous quarter, resulting in a 94% decrease. This was further impacted by higher operating costs associated with the commencement and handover of several new advertising sites, which led to an increase in lease expenses, depreciation, and finance costs, negatively affecting profit margins during the period.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	Emphasis of Matter – Restatement of Comparative Interim Consolidated Financial Information We draw attention to Note (15) to the accompanying condensed interim consolidated financial statements, which indicates that the comparative information presented for the three-month period ended 31 March 2025 has been restated. This restatement resulted from the Group, through one of its subsidiaries, reassessing the accounting policy applied for the recognition of a certain contract in order to determine the most appropriate application of the accounting policies relevant to this type of contract, following the availability of new information related to the contract, in accordance with the International Financial Reporting Standards as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Our conclusion has not been modified in respect of this matter.
Reclassification of Comparison Items	With reference to the contract for the construction, operation, and maintenance of outdoor advertising billboards in the City of Riyadh and its appendices (the “Contract”), entered into between Remat Al Riyadh Development Company and the consortium of Arabian Contracting Services Company and the Saudi Company for Artificial Intelligence on 10/04/1445H, and to the amendments made thereto, including the extension of the contract term, as previously announced on the Saudi Exchange (Tadawul) on 22/10/2025G corresponding to 30/04/1447H, the Company has reassessed the accounting treatment applied to this Contract. This reassessment was undertaken in light of the aforementioned amendments and the discussions held during the current year, which contributed to a more precise understanding of the nature of the contractual arrangements related to the project. As part of the Company’s commitment to ensuring the appropriateness of the applied accounting treatment, the Company engaged two independent global accounting advisory firms to assess the nature of the contractual arrangements and evaluate the most appropriate accounting treatment in accordance with the International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia. These studies and technical assessments concluded that the contractual arrangement under the Contract does not fall within the scope of public service concession arrangements and does not include obligations to provide a public service in accordance with the relevant interpretations of the International Financial Reporting Standards. Accordingly, based on the outcome of these studies, an updated accounting treatment for the Contract was applied under International Financial Reporting Standard No. (16) “Leases” (IFRS 16), which more accurately reflects the substance of the related contractual arrangements. As a result, the Company has re-presented and reclassified certain comparative figures for the financial period ended 31 March 2025 to reflect the updated accounting treatment and the most appropriate presentation of the relevant financial statement line items. This is in line with the Company’s commitment to the proper application of IFRS as endorsed in the Kingdom of Saudi Arabia, following the completion of all necessary professional procedures, including obtaining independent advice from leading global accounting advisory firms and an independent legal advisor, as well as the recommendation of the Audit Committee and approval by the Board of Directors.
Additional Information	None