SABIC Swings to a Q1 2026 Net Profit of $3.5 Million as Restructuring Bites

Summary: Saudi Basic Industries Corp. (SABIC) returned to profit in the first quarter of 2026, posting net earnings of SR13.2 million ($3.52 million) compared with a SR1.21 billion loss a year earlier, as cost control, restructuring and announced asset sales offset a 10.65% annual decline in revenue, the Riyadh-based chemical producer said in a filing on the Saudi Exchange.

The quarter's numbers

Adjusted net income — calculated as net cash from operating activities minus capital expenditure — stood at SR816 million. Revenue reached SR26.15 billion, a 10.65% annual decline and a 6.4% quarter-on-quarter fall, driven primarily by lower sales volumes and lower average selling prices. Earnings before interest, taxes, depreciation and amortization came in at SR4.15 billion, an increase of 36% compared with the previous three months. Adjusted earnings per share by the end of the quarter stood at SR0.27, while free cash flow turned negative at SR270 million due to higher working capital.

Why the profit returned

The company attributed the rise in net profit to a decline in other operating expenses, along with continuous efforts in cost control and restructuring initiatives. The turnaround comes as SABIC pursues asset sales and restructuring measures to improve capital allocation and strengthen profitability amid persistent pressure on the global petrochemicals sector.

"In the first quarter of 2026, we continued to make meaningful progress according to our strategic agenda of portfolio optimization, corporate transformation, and selective growth," said Faisal Al-Faqeer (Faisal Al-Faqeer), CEO and executive board member of SABIC. "At the core of this progress is our unwavering commitment to operational excellence, with environment, health, safety, and security remaining top priorities."

Portfolio moves: divestments and Fujian

In January 2026, SABIC agreed to sell its European petrochemicals business to investment firm AEQUITA for $500 million.
In the same announcement cycle, it agreed to divest its engineering thermoplastics operations in the Americas and Europe to turnaround specialist Mutares for $450 million.
The CEO said the company is following through on both agreements announced at the start of the quarter.
On the growth side, the SABIC Fujian project continued as planned, reaching approximately 98% completion.

"In terms of selective growth, we are advancing a number of capital projects in a disciplined way. The execution of the SABIC Fujian project continues as planned, now reaching approximately 98 percent completion," Al-Faqeer said. "These decisive actions are aligned with our strategy to enhance capital allocation, strengthen SABIC's financial resilience, and position the company for growth in profitable markets."

What the result describes

The quarter is a margin story rather than a demand story. Revenue fell on both volume and price, yet EBITDA rose 36% quarter on quarter and the net line crossed back above zero — the arithmetic of a company paying for its turnaround through operating expenses, working capital and portfolio exits rather than through market recovery. The $950 million of announced divestment value in Europe and the Americas funds that transition, while Fujian, at 98% completion, represents the "selective growth" half of the formula: exit structurally pressured assets, finish the committed Asian capacity. The negative free cash flow of SR270 million marks the cost of carrying higher working capital through the switch — and the filing leaves no doubt that the global petrochemicals sector's pressure remains the backdrop against which every line is being managed.

Contact

SABIC (Saudi Basic Industries Corp.), Riyadh, Saudi Arabia. Media and investor relations enquiries are handled through the corporate website https://www.sabic.com.