Saudi-listed companies closed Q2 2026 with a strong earnings picture: aggregate net profit reached SAR 170.3 billion, up 37% year over year.

Saudi Arabian Oil Co.(2222.SA) remained the market's largest earnings contributor, with profit rising 42% to SAR 121.51 billion. Importantly, however, the improvement extended beyond the market's largest company: excluding Saudi Arabian Oil Co.(2222.SA), aggregate profit rose 25% to SAR 48.8 billion.

That is arguably the more useful signal for investors.

Q2 suggests that Saudi earnings momentum is becoming broader, supported by banks, a significant improvement in Basic Materials and several notable company-level turnarounds. At the same time, large-cap Energy and Banking companies continue to provide a strong earnings anchor for the overall market.

Q2 Earnings at a Glance

The next question is therefore not simply whether Saudi companies are earning more.

It is which parts of the market can sustain that momentum into Q3—and whether recent improvements in sectors such as petrochemicals continue to broaden.

Energy Remains the Market's Earnings Anchor

Energy generated approximately SAR 127 billion of Q2 profit, up 50% YoY and representing 74.6% of total market earnings.

Saudi Arabian Oil Co.(2222.SA) remained at the center of that performance. Its Q2 profit increased to SAR 121.51 billion, supported by higher average selling prices for crude oil and refined products.

For investors tracking Aramco, the next earnings test will therefore remain closely connected to oil prices, refining economics and product realizations.

But Energy's Q2 performance was not solely an Aramco story.

National Shipping Company of Saudi Arabia, National Shipping Company of Saudi Arabia(4030.SA), reported one of the strongest year-on-year improvements in the entire market. Net profit climbed from SAR 407.5 million to SAR 2.75 billion, up 574%, supported by stronger operating performance and higher global freight rates.

That makes Bahri an additional indicator for investors following the broader energy value chain: while Aramco reflects commodity and refining economics, Bahri provides exposure to shipping activity and freight-rate conditions.

What to watch next: oil and refined-product pricing for Saudi Arabian Oil Co.(2222.SA), alongside tanker utilization and global freight rates for National Shipping Company of Saudi Arabia(4030.SA).

Banks Provide Broad-Based Support Outside Energy

The Banking sector remained the second-largest earnings contributor, generating SAR 24.87 billion, up 8% YoY.

Banks accounted for 14.6% of aggregate Tadawul earnings, with quarterly profit growth supported by higher net special commission income and lower provisions.

Four banks also ranked among the market's 10 largest profit generators.

• Al Rajhi Bank(1120.SA): SAR 7.01 billion, +14%
• The Saudi National Bank(1180.SA): SAR 6.61 billion, +8%
• Riyad Bank(1010.SA): SAR 2.65 billion, +2%
• Saudi Awwal Bank(1060.SA): SAR 2.33 billion, +10%

This matters because banking earnings provide an important indication of the strength of Saudi Arabia's domestic economy beyond Energy.

The next confirmation will come from whether banks can continue balancing loan growth, net special commission income, funding costs and credit provisions.

If profitability remains broad across the major banks, the sector could continue to provide a stable earnings foundation for the wider Saudi market.

How Every Saudi Sector Performed in Q2

The sector table shows why the headline earnings number is only part of the story.

Energy and Banks remain the largest contributors, but several smaller sectors also recorded meaningful improvements.

Aggregate Net Profit by Sector

One encouraging feature is that the improvement is not limited to the two largest sectors.

Insurance earnings increased 25%, Pharmaceuticals rose 24%, Commercial & Professional Services grew 27%, Consumer Services increased 36%, and Transportation returned to profitability.

These sectors remain relatively small contributors to total Tadawul earnings, but their performance provides an additional indicator of earnings breadth across the market.

Basic Materials May Be Q2's Most Interesting Turnaround Story

Basic Materials moved from a SAR 585 million aggregate loss in Q2 2025 to SAR 1.80 billion of profit in Q2 2026.

The improvement deserves attention, but investors should look beneath the sector headline because individual companies remain at different stages of recovery.

Saudi Basic Industries Corp.(2010.SA), SABIC, reported a SAR 832.9 million loss, compared with a much larger SAR 4.07 billion loss a year earlier.

The sharp improvement partly reflects an easier comparison because Q2 2025 included approximately SAR 4.5 billion in impairment and restructuring charges.

For SABIC, the more useful signal going forward will therefore be whether underlying operating performance and industry conditions continue to normalize, rather than focusing only on the year-on-year percentage comparison.

Rabigh Refining and Petrochemical Co.(2380.SA) delivered an even more visible turnaround.

The company moved from a SAR 1.37 billion loss to SAR 2.66 billion of profit, supported by higher sales volumes and improved selling prices for refined and petrochemical products.

Yanbu National Petrochemical Co.(2290.SA) and Alujain Corp.(2170.SA) also contributed to improving petrochemical earnings.

Saudi Arabian Mining Co., Saudi Arabian Mining Co.(1211.SA), meanwhile, remained one of the largest profit generators in the broader materials sector, with Q2 earnings rising 13% to SAR 2.18 billion.

Not every petrochemical company experienced the same improvement.

• Saudi Kayan Petrochemical Co.(2350.SA): loss of SAR 672.8 million
• Sahara International Petrochemical Co.(2310.SA): loss of SAR 591.9 million
• National Industrialization Co.(2060.SA): loss of SAR 547.8 million
• Advanced Petrochemical Co.(2330.SA): loss of SAR 98.4 million

Rather than weakening the sector story, this divergence gives investors a clearer framework for Q3.

The next confirmation would be a broader improvement in petrochemical profitability across more producers.

That could depend on product prices, feedstock economics, utilization rates, sales volumes and global supply-demand conditions.

Telecom Remains Highly Profitable, While Financing Costs Are Worth Monitoring

Telecommunications generated approximately SAR 4.80 billion, making it the market's third-largest sector by aggregate profit.

Saudi Telecom Co., Saudi Telecom Co.(7010.SA), remained the dominant contributor, reporting Q2 profit of SAR 3.62 billion.

That was 5% below the comparable quarter, reflecting higher financing costs as well as a tougher comparison after Q2 2025 benefited from a Zakat provision reversal.

For investors, the key point is that stc continues to generate substantial underlying profitability.

The next question is whether operating growth can increasingly outweigh financing-cost pressure in coming quarters.

Utilities Remain an Important Defensive Earnings Contributor

Public Utilities generated approximately SAR 3.02 billion in Q2 profit.

Saudi Energy Co.(5110.SA) remained one of the largest individual profit contributors in the entire Saudi market, earning approximately SAR 2.63 billion during the quarter.

That represented a 14% YoY moderation, while The Power and Water Utility Company for Jubail and Yanbu(2083.SA) reported a quarterly loss.

For investors following utilities, future earnings will be shaped by operating performance, financing costs, infrastructure investment and demand growth.

The sector's strategic role in Saudi Arabia's long-term infrastructure development also means quarterly numbers are best considered alongside the longer-term investment cycle.

The 10 Largest Profit Contributors

The market's largest companies continued to provide a strong earnings foundation.

Together, the 10 most profitable companies accounted for more than 90% of total Q2 market earnings.

Rather than simply viewing that as concentration, it also highlights the substantial earnings scale of Saudi Arabia's largest Energy, Banking, Telecom, Shipping, Utilities and Materials companies.

Top 10 Profitable Companies

Seven of these companies recorded year-on-year profit growth or returned to profitability.

For investors, this group also provides a useful cross-section of the main forces shaping Saudi corporate earnings: oil prices, interest margins, domestic credit growth, telecom demand, freight rates, petrochemical pricing, electricity demand and commodity markets.

Companies Reporting the Largest Q2 Net Losses

Strong aggregate earnings can coexist with company-specific challenges, particularly in cyclical sectors or businesses undergoing adjustment.

A total of 60 companies reported losses during Q2, including 38 that moved into loss-making territory.

The largest reported losses were concentrated mainly among Basic Materials and selected consumer and media companies.

Top 10 Companies Reporting Net Losses

• Al Othaim's Q2 figures included SAR 107 million of inventory provisions.

Several of these results also illustrate why investors should separate reported earnings from recurring operating trends.

Saudi Basic Industries Corp.(2010.SA)'s loss, for example, narrowed significantly after the prior-year period included exceptional charges. Flynas Co.(4264.SA) also substantially reduced its loss compared with Q2 2025.

The next quarter will help indicate which improvements are becoming more durable.

H1 Shows the Improvement Extends Beyond One Quarter

Saudi corporate earnings also look stronger when viewed across the full first half rather than Q2 alone.

Aggregate H1 2026 net profit reached SAR 337.06 billion, up 29% from SAR 261.34 billion a year earlier.

Excluding Saudi Arabian Oil Co.(2222.SA), H1 profit increased 19% to SAR 95.42 billion.

That is important because it suggests the broader earnings improvement is not based solely on a single quarter.

What Should Investors Watch in Q3?

Q2 provides a relatively constructive starting point for the next earnings season.

The market has three layers of support:

First, large-cap earnings remain strong.

Saudi Arabian Oil Co.(2222.SA), major banks, Saudi Telecom Co.(7010.SA), Saudi Energy Co.(5110.SA), National Shipping Company of Saudi Arabia(4030.SA) and Saudi Arabian Mining Co.(1211.SA) continue to generate substantial absolute profits.

Second, earnings growth is broadening beyond Aramco.

The 25% ex-Aramco increase is one of the strongest indications that the quarter's improvement extended across other parts of the market.

Third, several cyclical sectors are showing signs of normalization.

Basic Materials returned to aggregate profitability, Rabigh Refining and Petrochemical Co.(2380.SA) turned profitable, Saudi Basic Industries Corp.(2010.SA) significantly reduced its loss and Transportation also moved back into the black.

The next test is whether those trends can continue simultaneously.

Investors may want to monitor:

• Oil and refined-product prices for Saudi Arabian Oil Co.(2222.SA)
• Net special commission income, funding and credit costs for Al Rajhi Bank(1120.SA), The Saudi National Bank(1180.SA), Riyad Bank(1010.SA) and Saudi Awwal Bank(1060.SA)
• Freight rates for National Shipping Company of Saudi Arabia(4030.SA)
• Petrochemical prices, utilization and product spreads for Saudi Basic Industries Corp.(2010.SA), Rabigh Refining and Petrochemical Co.(2380.SA), Yanbu National Petrochemical Co.(2290.SA), Alujain Corp.(2170.SA), Saudi Kayan Petrochemical Co.(2350.SA), Sahara International Petrochemical Co.(2310.SA), National Industrialization Co.(2060.SA) and Advanced Petrochemical Co.(2330.SA)
• Commodity-market conditions for Saudi Arabian Mining Co.(1211.SA)
• Financing costs and operating momentum for Saudi Telecom Co.(7010.SA)
• Demand, infrastructure investment and financing dynamics for Saudi Energy Co.(5110.SA) and The Power and Water Utility Company for Jubail and Yanbu(2083.SA)

The strongest Q3 confirmation would be continued large-cap resilience combined with improving profitability across a wider range of companies and sectors.

That would provide further evidence that Saudi corporate earnings are developing a broader base after a strong first half.

Stocks to Watch: Q3 Earnings Framework

Other Companies Included in the Q2 Dataset Methodology

Several listed companies were excluded from the headline aggregation methodology for reporting-calendar or disclosure reasons, but remain relevant names for investors tracking the Saudi market.

These exclusions are methodological and should not be interpreted as an indication of company performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities.