Kingdom Holding Posts 906M SAR Nine-Month Profit

Saudi Arabia's Kingdom Holding Company reported a net profit of 906.3 million SAR for the nine months ending September 30, 2026, marking a 44.4% decline from 1.63 billion SAR in the same period last year. The drop appears steeper due to a one-time impairment reversal in the previous year. Quarterly earnings were down 61.7% in Q3 2026, compared to 61.7% in the same quarter in 2025.

Despite the profit decline, revenue grew 36% year-on-year to 850.3 million SAR, driven by stronger hotel revenues and higher dividend income. Gross profit fell 14.8% to 1.04 billion SAR, while operating profit dropped 28.4% to 1.71 billion SAR. The nine-month period included gains from the sale of an equity-accounted investee and investment properties, which were not repeated in 2026.

Earnings per share for the period stood at 0.24 SAR, down from 0.44 SAR in the prior-year period. Management will present the full nine-month results and take investor questions in an earnings call on November 3, 2026. Investors should note that the profit decline is largely a base effect, with revenue growth being real and accelerating.

However, cost pressure is building, with higher hotel operating costs, rising zakat, and increased financial charges squeezing margins. The 39% rise in shareholders' equity may reflect fair value gains in the investment portfolio, but this does not always translate into cash returns.