Saudi Ground Services Co. announces its Interim Financial results for the Period Ending on 2026-06-30 (Six Months)

Saudi Ground Services reported a net loss of SAR 56.6 million for the quarter ending June 30, 2026, a significant reversal from the SAR 99.4 million profit recorded in the same period last year; consequently, six-month net profit fell by 98% to SAR 3.9 million.
Quarterly revenue declined by 7.8% year-over-year to SAR 635.1 million, while half-year sales reached SAR 1.31 billion, driven primarily by a decrease in operational activities compared to the prior year.
Results were pressured by a sharp rise in operational expenses, which increased by SAR 74 million during the quarter as the company maintained resources and readiness to support the Hajj and Umrah seasons despite lower overall activity.
Earnings per share plummeted to SAR 0.02 from SAR 1.05 year-over-year, though the company maintained a stable balance sheet with total shareholders' equity rising 2.2% to SAR 2.59 billion.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	635,149	688,948	-7.808	672,495	-5.553
Gross Profit (Loss)	10,155	137,990	-92.64	107,569	-90.559
Operational Profit (Loss)	-61,904	96,663	-	27,400	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	-56,577	99,373	-	60,452	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-31,590	114,220	-	60,452	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,307,644	1,360,443	-3.881
Gross Profit (Loss)	117,724	301,273	-60.924
Operational Profit (Loss)	-34,504	192,464	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	3,875	197,000	-98.032
Total Comprehensive Income Attributable to Shareholders of the Issuer	28,862	211,847	-86.376
Total Shareholders Equity (after Deducting Minority Equity)	2,594,457	2,537,541	2.242
Profit (Loss) per Share	0.02	1.05
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	-	-
Accumulated Losses	-	-
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	The Company recorded a total revenue of SAR 635.1 million for the current quarter compared to SAR 688.9 million for the same quarter of last year representing a decrease of SAR 53.8 million. The variance primarily reflects a decrease in operational activities during the current quarter compared to the same quarter of the last year.
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 Company recorded a net loss of SAR 56.6 million for the current quarter, compared to a net profit of SAR 99.4 million in the same quarter of the previous year. This was mainly attributable to a decrease in revenues by SAR 53.8 million as a result of the ongoing decline in operational activities that began at the end of the previous quarter, alongside maintaining operational readiness and the resources required to support the recovery in operational activities, while ensuring the provision of operations during the Hajj and Umrah season, which has an impact on increasing operational expenses by SAR 74.0 million. In addition, general and administrative expenses increased by SAR 20.2 million, along with the decrease in other income by SAR 7.3 million. This was partially offset by a decrease in Zakat expense by SAR 4.6 million compared to the same quarter of last year.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The Company recorded a total revenue of SAR 635.1 million for the current quarter compared to SAR 672.5 million in the previous quarter, reflecting a decline of SAR 37.4 million. The variance primarily reflects a decrease in operational activities during the current quarter compared to the previous quarter.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The Company recorded a net loss of SAR 56.6 million for the current quarter compared to a net profit of SAR 60.5 million in the previous quarter. This was mainly attributable to a decrease in revenue by SAR 37.4 million as a result of the ongoing decline in operational activities that began at the end of the previous quarter, alongside maintaining operational readiness and the resources required to support the recovery in operational activities, while ensuring the provision of operations during the Hajj and Umrah season, which has an impact on increasing operational expenses by 60.1 million. This impact was partially offset by the decrease in general and administrative expenses by SAR 13.5 million, impairment losses by SAR 1.8 million and an increase in income from term deposits by SAR 1.9 million compared to the previous quarter. However, zakat charge increased by SAR 28.9 million mainly due to the reversal of Zakat provisions related to prior years in the previous quarter.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The Company recorded a total revenue for the current period of SAR 1,307.6 million compared to SAR 1,360.4 million for the same period of last year, reflecting a decline of SAR 52.8 million. The variance primarily reflects a decrease in operational activities during the current period compared to the same period of last year.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The Company recorded a net profit of SAR 3.9 million for the current period compared to a net profit of SAR 197.0 million in the same period of the last year. This was mainly attributable to a decrease in revenue by SAR 52.8 million as a result of the ongoing decline in operational activities that began at the end of the previous quarter, alongside maintaining operational readiness and the resources required to support the recovery in operational activities, while ensuring the provision of operations during the Hajj and Umrah season, which has an impact on increasing operational expenses by 130.8 million. This impact was partially offset by a decrease in Zakat expense by SAR 39.3 million compared to the same period of the last year, mainly due to the reversal of Zakat provisions related to prior years. In addition, interest income on term deposits increased by SAR 5.4 million, while general and administrative expenses increased by SAR 36.3 million mainly due to exceptional non-recurring costs.
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)	None
Reclassification of Comparison Items	None
Additional Information	The Company recorded a total revenue of SAR 635.1 million for the current quarter compared to SAR 688.9 million for the same quarter of last year. The gross profit amounted to SAR 10.2 million, compared to a gross profit of SAR 137.9 million for the same quarter of the previous year. Operating loss for the current quarter amounted to SAR 61.9 million, compared to an operating profit of SR 96.7 million for the same quarter of the last year. Net loss and total comprehensive loss during the current quarter amounted to SAR 56.6 million and SAR 31.6 million, respectively, compared to net profit and total comprehensive income of SAR 99.4 million and SAR 114.2 million, respectively, for the same quarter of the last year. The Company has no minority interest, and total shareholders’ equity reached SAR 2,594.4 million at the end of the current quarter compared to SAR 2,537.5 million at the end of the same quarter of the last year. In addition, the retained earnings as of the current quarter are SAR 714.5 million, a decrease of SAR 31.6 million compared to the previous quarter, in which the Company recorded a retained earnings of SAR 746.1 million.