Arabian Drilling 2Q26 - Revenue and EBITDA beat on land resilience

Research evidence excerpt

10 August 2026

Abdessamad Raghibi, Ph.D.

MENA Energy

Arabian Drilling

Guillaume Delaby

Rating

Outperform

Specialist Sales

Price Target

Gareth Williams

ARABIAND.AB

115.44 SAR

Arabian Drilling 2Q26 - Revenue and EBITDA beat on land

resilience

Arabian Drilling's top-line held up better than feared, down 11% y-o-y but 3% above consensus

and in line with our estimate, as sustained land-segment strength (+8.2% qoq revenue) partially

offset the temporary suspension of offshore rigs. EBITDA of SAR251m beat consensus by 6%

and matched our number, but the Company swung to a net loss of SAR -32m, a smaller miss

than the SAR -40m consensus expected, though wider than our SAR -24m estimate, as the highmargin offshore drag and one-off cost-optimization charges weighed below the EBITDA line.

Headline vs. Guidance. 2Q revenue declined only 6.9% qoq to SAR 765m, materially better

than the Company's own guidance of "up to 12%" sequential decline, driven by a SAR 122m

offshore hit being largely offset by SAR 47m of land-segment improvement and an SAR 18m

first full-quarter GCC international contribution.

Close Date

6 Aug 2026

ARABIAND.AB Close Price (SAR)

81.70

Price Target (SAR)

115.44

Upside/(Downside)

41%

52-Week Range

107.00/72.15

ASIAX

1,914.02

FYE

Dec

Div Yield

NA

Market Cap (SAR) (M)

7,271

EV (SAR) (M)

9,614

Performance

YTD

1M

6M

12M

Land drilling held strong. Land segment margins improved sharply, with gross profit margin Absolute (%)

(17.3) (11.3) (18.0)

6.3

jumping to 13.6% from just 2.2% in 1Q26, evidence that the operational turnaround here is ASIAX (%)

17.0

(1.7)

8.0

30.6

structural rather than one-off. EBITDA margin held at 32.8% despite offshore utilization falling Relative (%)

(34.3)

(9.6) (26.0) (24.3)

to 71.7% (from 81.7% in 1Q26), beating consensus of 31.8% and roughly in line with our Source: Bloomberg, Bernstein estimates and analysis.

32.9% estimate. Backlog remains robust at SAR 11.83bn (+7.1% yoy), and, critically, all three

previously suspended offshore rigs have already resumed operations as of 1 August, ahead of Price Performance, 1YR

the "by year-end" timeline the market had priced in. Management also flagged early traction SAR120

2200

…