ACWA Power stock faces a 36 percent Q2 profit decline

Published on 10/07/2026 at 09:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ACWA Power stock was trading at SAR 174.90 on October 7, 2026, on Tadawul. H1 profit reached SAR 653.2 million as Q2 revenue rose 15 percent.

ACWA Power, SA15CGS10H12, Illustration mit AI erstellt.

ACWA Power (ISIN SA15CGS10H12) was trading at SAR 174.90 on Tadawul on October 7, 2026, at 10:27 a.m. AST, down SAR 0.60 or 0.34 percent from the prior close. Argaam reports H1 2026 net profit of SAR 653.2 million, including SAR 308.4 million in the second quarter.

Q2 revenue grows as profit falls

The latest interim figures put the emphasis on margin pressure rather than demand. Q2 revenue reached SAR 2.01 billion, up 15 percent from Q2 2025, while net income fell 36 percent to SAR 308.4 million and earnings per share declined to SAR 0.40 from SAR 0.65.

Simply Wall St says the second-quarter revenue missed analyst estimates by 1.4 percent, while EPS missed by 45 percent. The combination matters for ACWA Power because its project pipeline can expand revenue while financing and operating costs weigh on conversion into earnings.

Rabigh 2 adds long-term capacity

The operating picture is supported by project execution. Gulf Construction reported on October 4, 2026, that the SAR 9.69 billion Rabigh 2 expansion reached financial close. ACWA Power owns 40 percent of the project, which will add 2,313.5 megawatts of combined-cycle generation capacity.

The project is not an immediate earnings offset: the company expects its financial impact to begin in Q2 2029. That timing leaves the current stock case dependent on execution across existing assets and on whether higher capacity eventually improves profit growth.

Analysts remain below the market price

Investing.com lists a Sell consensus from seven analysts, with an average 12-month price target of SAR 143. The target is SAR 31.90 below the October 7 price of SAR 174.90, making the analyst view more cautious than the current market quotation.

For investors, the key comparison is therefore clear: Q2 revenue advanced 15 percent, but net income contracted 36 percent. The Rabigh 2 financing adds a measurable long-term asset, while the latest earnings show that scale has not yet translated into higher quarterly profit.

Stock remains below its yearly high

ACWA Power stock was trading at SAR 174.90 on Tadawul on October 7, 2026, 30.76 percent below its 52-week high of SAR 252.60 and above its 52-week low of SAR 149.40.