Financial Review

*All highlights above pertain to continuing operations unless otherwise stated.

**Cash from operating activities and free cash flow are prepared on a pro-forma basis excluding discontinued operations.

***Attributable to equity holders of the Parent.

Financial performance

*All numbers presented above are based on the published financial statements, including any restatements of prior periods.

**The results of SABIC's European Petrochemicals business and Engineering Thermoplastics business in the Americas and Europe were reported as discontinued operations for 2025 and 2024, while results of Hadeed were reported as discontinued operations for the years 2024, 2023, and 2022.

Sales totaled SAR 116.53 Bn. in 2025, a slight decrease of 1% from SAR 117.74 Bn. in 2024, primarily due to lower average sales prices, with increased sales volumes partly offsetting the decline. 

Income from operations (EBIT) was SAR 4.37 Bn. compared to SAR 9.43 Bn. in 2024, a decrease of SAR 5.06 Bn. or 54%, largely impacted by lower gross profit resulting from lower average sales prices, with additional impact from impairments recognized on certain assets due to a changing market environment. This was also driven by the increase in other operating expenses mainly due to non-recurring costs related to a strategic restructuring initiative, offset by savings in operating expenses resulting from continuous efforts in expenditure controls and the aforementioned strategic restructuring initiative. 

Income tax and Zakat expenses amounted to SAR 1.60 Bn. compared to SAR 0.82 Bn. in 2024, an increase of SAR 0.78 Bn. mostly due to the favorable impact of Zakat in 2024 following the revision of relevant regulations. 

Net losses from discontinued operations were SAR 24.38 Bn. compared to SAR 3.55 Bn. in 2024. This increase was primarily driven by effects of the fair value assessment results due to the potential divestiture of SABIC's European Petrochemicals business as well as the Engineering Thermoplastics business in the Americas and Europe, amounting to SAR 9.85 Bn. and SAR 5.33 Bn., respectively. On top of the fair value loss, the European Petrochemicals business and the Engineering Thermoplastics business in the Americas and Europe reported higher losses of SAR 4.87 Bn. and SAR 1.34 Bn., respectively, compared to last year. These losses included the impact of the Teesside UK cracker closure amounting to SAR 3.78 Bn. as well as de-recognition of deferred tax assets of SAR 1.73 Bn. as they are no longer recoverable within the expected period till divestiture. 

In 2025, a net loss (attributable to equity holders of the Parent) of SAR 25.78 Bn. was reported as compared to the net income of SAR 1.54 Bn. in 2024, a decrease of SAR 27.32 Bn. This was primarily driven by the losses from discontinued operations. 

*All numbers presented above are based on the published financial statements, including any restatements of prior periods.

**Assets and liabilities pertaining to SABIC’s European Petrochemicals business and Engineering Thermoplastics business in the Americas and Europe were classified under assets/liabilities held for sale as of December 31, 2025. The investment in ALBA was classified under assets held for sale as of December 31, 2024, while assets and liabilities pertaining to the Hadeed business were classified under assets/liabilities held for sale as of December 31, 2023.

*All cash flow numbers are inclusive of discontinued operations.

Net cash generated from operating activities in 2025 was SAR 15.96 Bn. compared to SAR 16.36 Bn. in 2024, a decrease of SAR 0.40 Bn. or 2%, mainly the result of lower profitability and pay-outs related to the strategic restructuring initiative, partially offset by improvements in working capital from lower inventory and trade receivables balances, reflecting the continuous efforts of the group and changes in market conditions. 

Net cash used in investing activities in 2025 was SAR -7.72 Bn. compared to SAR -7.99 Bn. in 2024, a decrease of SAR 0.27 Bn. or 3%, driven primarily by higher proceeds from divestments (mainly from the divestiture of ALBA and collection from the Public Investment Fund for the divestiture of Hadeed in 2024) and lower capital expenditures, partially offset by an increase in short-term investments. 

Net cash used in financing activities in 2025 was SAR -10.87 Bn. compared to SAR -11.56 Bn. in 2024, a decrease of SAR 0.68 Bn. or 6% primarily due to higher net proceeds from debt, offset by higher dividend payments. 

Cash and cash equivalents at December 31, 2025 stood at SAR 27.95 Bn. compared to SAR 30.54 Bn. in 2024, a decrease of SAR 2.59 Bn. or 8%. 

Free cash flow in 2025 was SAR 7.18 Bn. compared to SAR 6.16 Bn. in 2024, an increase of SAR 1.03 Bn. or 17% driven mainly by improved working capital, partially offset by lower profitability. 

Financing

SABIC's financing strategy is focused on maintaining adequate liquidity, balance sheet strength, and financial flexibility, while supporting long-term shareholder value creation. During 2025, the company continued to apply a prudent and disciplined approach to leverage, ensuring continued access to diversified funding sources and resilience in a challenging operating environment. SABIC's credit profile remains in the high investment grade category, rated Aa3 long-term by Moody's, reflecting the strength of its capital structure and conservative financial management, with cash exceeding reported debt, and a strong liquidity position. 

Our primary sources of liquidity comprise cash flows generated from operations supported by committed bank facilities. These liquidity resources are deployed to fund ongoing operational requirements, capital expenditure funding, and strategic investments. Liquidity is also used to support dividend distributions to shareholders, in line with SABIC's capital allocation priorities and financial strategy. 

Read a detailed review of our debt portfolio overview and access our consolidated financial statements.  

Tax

SABIC's tax policy is approved by the Board and reviewed regularly. It supports SABIC's ambition to be the preferred world leader in chemicals by ensuring tax compliance, that tax considerations are integrated into business decision-making, risks are proactively managed, and SABIC's reputation as a responsible and compliant corporate citizen is protected. SABIC's governance structure in place ensures that tax decisions are made at the appropriate level with specific board and management approval requirements and processes that are accurately executed and monitored. 

Read more about our approach to tax

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2025 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}