SABIC Posts Narrower Q2 2026 Loss, Specialties Rise

SABIC reported its financial results for the second quarter of 2026, showing a narrower net loss even as overall revenue and profitability declined compared with earlier periods. The results point to pressure across the group, with a bright spot in its Specialties business.

Group revenue reached SAR 24.81 billion in Q2 2026, down 5% from the previous quarter and 17.9% lower year on year. Gross profit stood at SAR 4.35 billion, falling roughly 15% versus Q1 2026 and about 30% versus Q2 2025.

The net loss attributable to shareholders was SAR 0.83 billion. While that is a loss, it marks a clear improvement from the SAR 4.07 billion net loss recorded in Q2 2025, though it came in below the near break-even result of Q1 2026. On an adjusted basis, EBITDA was SAR 3.38 billion, down 18% from SAR 4.15 billion in the prior quarter, with the adjusted EBITDA margin narrowing to 13.6% from 15.9%.

Overall sales volumes dropped about 33% quarter on quarter, while average selling prices rose about 41%, reflecting shifting demand and pricing dynamics.

Specialties business shows momentum

The Specialties segment stood out, with sales volumes up 14% versus Q1 2026 and average prices up around 2%. Operating income for the segment rose to about SAR 220 million from around SAR 170 million, supported by strong demand in electronics, medical devices, industrial, infrastructure, and mobility end-markets.

For residents and businesses in the Kingdom, SABIC's performance is a key indicator of the wider industrial economy. The improving loss picture and the strength in high-value specialty chemicals suggest resilience in strategic sectors tied to manufacturing and technology, even as broader market conditions remain challenging.

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