Saudi utility and renewable energy developer ACWA Power reported a mixed financial performance for the first half of 2026, with revenue increasing while net profit fell sharply as higher costs and weaker income from several investment-related activities offset stronger operating sales.
Revenue for the six months ended June 30 rose 8.6% year on year to SAR4.03 billion, equivalent to roughly $1.07 billion, compared with SAR3.71 billion during the same period of 2025. Net profit attributable to shareholders declined 28.1% to SAR653.2 million from SAR909 million a year earlier.
The results show a widening gap between ACWA Power’s expanding revenue base and its bottom-line performance as the company navigates project delays, geopolitical uncertainty and higher administrative expenses.
Gross profit remained comparatively resilient, but operating profit weakened significantly, reflecting lower contributions from equity-accounted investments and a decline in other operating income.
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Higher Energy Sales Support ACWA Power Revenue
ACWA Power said its first-half revenue improvement was primarily driven by higher energy sales as well as increased operation and maintenance income.
Revenue was also supported by activities related to shared facilities and services across the company’s expanding portfolio.
The stronger top-line performance reflects the growing scale of ACWA Power’s electricity generation, desalinated water and renewable energy businesses across multiple markets.
The company currently manages assets worth approximately SAR474.8 billion across 111 projects in 16 countries, underlining how significantly its international portfolio has expanded.
ACWA Power’s growth strategy continues to focus heavily on renewable power, conventional generation, water desalination and green hydrogen projects.
Net Profit Falls Despite Revenue Growth
The stronger revenue performance did not translate into higher earnings.
Net profit declined to SAR653.2 million, compared with SAR909 million in the first half of the previous year. Earnings per share also fell to SAR0.85 from SAR1.23.
The decline was attributed partly to weaker contributions from equity-accounted investees and lower development and construction-related income.
Higher general and administrative expenses also weighed on earnings during the period.
ACWA Power’s first-quarter results had already shown pressure on profitability. The company reported net profit of SAR345 million for Q1 2026, down from SAR427 million a year earlier, despite continued expansion of its global project portfolio.
Gross Profit Shows Modest Growth
Gross profit for the first half increased modestly to around SAR1.9 billion, representing growth of approximately 3.7%.
That indicates the company’s underlying operating activities continued generating additional gross earnings despite pressure elsewhere in the income statement.
However, operating profit fell substantially to approximately SAR1.44 billion, representing a decline of about 34.6% from the comparable period.
The decline demonstrates how costs and non-core operating income can significantly affect profitability even when revenue and gross profit are moving higher.
Last Year’s One-Off Income Creates Tough Comparison
ACWA Power also faced a difficult comparison with the first half of 2025.
The previous period benefited from higher performance-related liquidated damages and insurance income that were not repeated at the same level this year.
Without those contributions, other operating income was lower in the first half of 2026.
The impact was partly cushioned by lower finance costs, stronger finance income and the modest increase in gross profit.
This means the headline 28% decline in net profit reflects both weaker current-period contributions and an unusually favorable comparison base in certain areas last year.
ACWA Power Q2 Revenue Grows 15%
The second quarter also showed the same basic pattern: stronger revenue but weaker profitability.
Revenue for the three months ended June rose 15.1% from a year earlier to SAR2.01 billion.
Net profit attributable to shareholders, however, fell nearly 36% year on year to SAR308.4 million from approximately SAR481.8 million in Q2 2025.
Compared with the first quarter of 2026, revenue was broadly stable, while quarterly net profit declined.
The sequential earnings pressure reflected factors including lower EPC-related revenue, operational interruptions at some power assets and higher impairment charges.
Project Delays Affect Development Income
One of the more significant factors behind the weaker earnings was slower project development activity.
ACWA Power said geopolitical uncertainty and changing market conditions affected the pace of its development pipeline during the second quarter.
Delays can reduce the timing of development and construction management fees even when projects remain part of the long-term portfolio.
This distinction matters because ACWA Power’s financial performance depends not only on revenue generated from operating plants but also on project development activities and investment income.
CEO Samir J. Serhan said the company continued navigating geopolitical uncertainty, market volatility and changing economic conditions across several core markets during the first half.
Development Pipeline Continues to Expand
Despite weaker earnings, ACWA Power continued adding new capacity to its pipeline.
During the period, the company added approximately 5.2 GW of new power generation capacity and around 0.6 million cubic metres per day of additional water desalination capacity to its development portfolio.
That expansion reinforces the company’s long-term strategy of building scale across power generation and desalination.
The ability to convert those projects into operational assets will be important for future revenue and profit growth.
Shareholders’ Equity Climbs Nearly 40%
ACWA Power’s balance-sheet figures showed significant growth in shareholders’ equity.
Total equity attributable to shareholders reached approximately SAR30.04 billion at the end of June, representing an increase of 39.9% from SAR21.47 billion a year earlier.
The increase provides additional financial capacity as the company continues investing in large infrastructure projects.
Such projects require substantial upfront capital and often have development timelines stretching across several years.
Why ACWA Power’s H1 Results Matter
The first-half numbers provide an important snapshot of a company pursuing aggressive international expansion while operating in a challenging economic and geopolitical environment.
Revenue growth demonstrates that ACWA Power’s operating portfolio continues to expand.
The decline in profit, however, highlights the risks associated with large-scale infrastructure development, including:
- Delayed project timelines
- Higher corporate expenses
- Operational outages
- Changes in investment income
- Impairment charges
- Geopolitical disruption
For investors, the key question is whether the current earnings pressure is temporary or becomes a more persistent feature as the company continues expanding.
ACWA Power H1 2026 Financial Highlights
| Metric | H1 2026 | Change |
|---|---|---|
| Revenue | SAR4.03 billion | +8.6% |
| Net profit | SAR653.2 million | -28.1% |
| Gross profit | About SAR1.9 billion | +3.7% |
| Operating profit | SAR1.44 billion | -34.6% |
| Earnings per share | SAR0.85 | Down from SAR1.23 |
| Shareholders’ equity | SAR30.04 billion | +39.9% |
| Q2 revenue | SAR2.01 billion | +15.1% YoY |
| Q2 net profit | SAR308.4 million | -36% YoY |
The headline revenue and profit figures are consistent across market reports covering ACWA Power’s first-half announcement.
ACWA Power Remains Focused on Long-Term Expansion
Despite short-term pressure on earnings, ACWA Power has continued emphasizing its long-term growth pipeline.
The company’s business spans renewable energy, thermal power, desalination and green hydrogen, positioning it at the center of Saudi Arabia’s energy transition and infrastructure expansion.
Its geographical footprint has also grown beyond the Kingdom, increasing exposure to both opportunities and risks in international markets.
The company’s Q1 update showed assets under management of approximately SAR455 billion at that stage of the year, before the figure subsequently rose further in the first-half reporting period.
Outlook Will Depend on Project Execution
The remainder of 2026 will likely place greater attention on project execution and whether delayed developments can regain momentum.
Investors will also be watching operational availability at existing plants, financing costs and the company’s ability to manage administrative expenses as its international footprint expands.
Growth in operating assets could support future earnings, but the first-half results demonstrate that expanding capacity alone does not guarantee immediate profit growth.
ACWA Power must balance rapid expansion with project timing, financing discipline and reliable asset performance.
Final Thoughts
ACWA Power’s first-half 2026 results tell two different stories.
Revenue climbed to SAR4.03 billion as higher energy sales and operation and maintenance income supported the company’s expanding business.
At the same time, net profit dropped 28% to SAR653.2 million as lower contributions from investments, weaker other operating income and higher administrative expenses weighed on earnings.
The second quarter followed a similar pattern, with revenue rising strongly while profit fell.
For ACWA Power, the challenge for the remainder of the year will be converting its expanding project pipeline and operating portfolio into stronger earnings while managing costs and geopolitical uncertainty.
Frequently Asked Questions
How much revenue did ACWA Power generate in H1 2026?
ACWA Power reported revenue of SAR4.03 billion for the first six months of 2026, up approximately 8.6% year on year.
How much did ACWA Power’s net profit decline?
Net profit attributable to shareholders fell approximately 28.1% to SAR653.2 million from SAR909 million during the same period last year.
Why did ACWA Power’s profit fall?
The company cited weaker contributions from equity-accounted investments, lower development-related income and higher administrative expenses among the main factors affecting earnings.
What was ACWA Power’s Q2 2026 net profit?
Second-quarter net profit reached approximately SAR308.4 million, down nearly 36% year on year.
How large is ACWA Power’s global portfolio?
As of the end of June 2026, ACWA Power reported managed assets worth about SAR474.8 billion spanning 111 projects across 16 countries.
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