Aqua Saudi Arabia has reported a notable decrease in its net profits during the first quarter of 2026, with profits reaching 344.7 million riyals (approximately $91.5 million), compared to 427 million riyals (around $113 million) in the same period last year, reflecting a 19% decline.
The company clarified in a statement published on the trading platform that this decline is primarily due to reduced revenues from project development and construction services, alongside the increased impact of deferred taxes. Nevertheless, the company managed to mitigate some of the effects of this decline thanks to an increase in its share of results from invested companies, as well as a rise in other operational revenues and a decrease in financing expenses.
Event Details
Despite the profit decline, the company's revenues showed an annual growth of 3%, reaching 2 billion riyals (approximately $530.8 million) compared to 1.9 billion riyals (around $504 million) in the first quarter of 2025. This growth was driven by increased energy production and higher revenues from operations and maintenance services.
On a quarterly comparison, revenues decreased by about 1% compared to 2.04 billion riyals (around $541.5 million) in the fourth quarter of 2025, while net profit fell by 40% compared to 572 million riyals (approximately $151.8 million) in the same quarter last year, due to a decline in gross profit and a decrease in the company's share of results from invested companies.
Background & Context
Aqua, formerly known as Aqua Power, is one of the largest private companies in the world in the field of water desalination and a leader in energy transition. It also tops the list of companies developing major green hydrogen projects, highlighting its vital role in achieving sustainability and clean energy goals.
The company was established in 2008 and quickly became a key player in the Saudi and regional markets, seeking to expand its projects in renewable energy and water desalination. With global economic challenges, the company faces pressures that require it to reassess its strategies to ensure sustainable growth.
Impact & Consequences
The decline in Aqua's profits is indicative of the challenges faced by companies in the energy and water sector, especially amid volatile global economic conditions. This decline may affect the company's future investments and its ability to implement new projects, necessitating strategic steps to adapt to these changes.
Moreover, the challenges faced by Aqua may reflect the overall situation in the Saudi market, where many companies are striving to balance growth and profitability under difficult economic conditions. This decline could also impact investor confidence in the sector, calling for greater transparency and communication from companies.
Regional Significance
Aqua serves as a role model in the Arab region, playing an important role in providing water and energy. Its profit decline may have broader implications for the regional market, especially given the increasing need for sustainable energy projects.
It is crucial for companies in the region to continue innovating and adapting to changes to ensure ongoing growth and meet market needs. Aqua's decline may prompt other companies to reassess their strategies and adopt new solutions to face future challenges.
In conclusion, Aqua remains in a strategic position to tackle challenges, but it needs effective strategies to ensure its sustainability and growth in the future.