2P backlog reaches SAR 2.5B, eyes new markets: CEO

In an interview with Argaam, Doughman said the backlog provides the company with good visibility into future revenues and includes contracts across managed services, operations and maintenance, contact centers, and digital solutions.

He added that the company remains optimistic about its performance in H2 2026.

The CEO explained that 2P continued to perform according to its plans during Q2 2026, supported by growth across most business lines, improved operational efficiency, and cost management.

He discussed the performance of the company’s business segments, backlog details, and future plans to expand its services and geographical footprint.

Here are details of the interview:

Q: 2P’s net profit rose to SAR 36.6 million in Q2 2026. What were the key factors supporting these results?

A: The company maintained its planned performance trajectory, with strong performance across all business lines. This reflects growth in most business lines, alongside ongoing efforts to improve operational efficiency and manage costs. The expansion into value-added services, particularly managed services and cybersecurity, has also started to have a greater impact on the revenue mix.

The company posted a net profit of SAR 36.6 million in Q2 2026, up 4.3% year-on-year (YoY) and 10.5% quarter-on-quarter (QoQ). Net profit for H1 2026 reached around SAR 69.6 million, compared with SAR 67.3 million in the same period of 2025.

Q: How did 2P business segments perform in Q2 2026? Which segments contributed to revenue and profit growth?

A: Our businesses generally performed positively, with all segments contributing to growth, while the focus remained on value-added segments and promising opportunities.

Managed services and cybersecurity are among the key growth drivers, alongside continued growth in operations and maintenance and contact center services.

This trend was clearly reflected in Q2 2026, with contact center revenue rising to SAR 107 million from SAR 92 million a year ago. Managed services revenue increased to SAR 53 million from SAR 25 million, while cybersecurity revenue rose to SAR 13 million from SAR 2 million a year earlier.

The company launched managed services, cybersecurity, and network infrastructure business units in 2024, which remain in the early stages of growth. This provides significant opportunities for expansion and gaining new market share, given the large size of the markets in which we operate.

This was reflected in the Q2 2026 results. Meanwhile, our established business units, including customer experience, software development, and operations and maintenance, have longer operating histories and more established market shares. This made further market-share gains more challenging compared with the newer units.

Accordingly, management continues to develop the newer business units and capitalize on available market opportunities, while maintaining the growth and sustainability of the established segments.

Q: What was the value of the backlog at the end of Q2? How much of the backlog is expected to be executed or recognized as revenue this year?

A: The backlog stood at around SAR 2.5 billion at the end of H1 2026, providing the company with good visibility into future revenues.

The portfolio includes several contracts across managed services, operations and maintenance, contact centers, and digital solutions.

Among the key contracts awarded during the year was a managed services contract for King Abdullah Medical City worth approximately SAR 185.3 million, in addition to other contracts in education, operations and maintenance, and contact centers.

These projects have already been contracted, with execution scheduled according to the nature of each contract, its implementation stages, and the timing of revenue recognition.

Q: What was 2P’s debt level at the end of Q2? How did financing costs affect the latest results? Do you have plans to restructure financing or reduce its cost going forward?

A: Debt stood at approximately SAR 800 million. Most of this financing was short-term and was used to finance projects and operating activities, apart from a long-term loan used to finance the acquisition of a new property announced by the company.

We are working on several plans and measures to reduce financing costs going forward.

Q: What are your expectations for the company’s performance and results in H2 2026? What are the key factors that could support or pressure performance?

A: We remain optimistic about H2 2026, supported by the backlog of around SAR 2.5 billion. The company’s productivity is approximately 80% dependent on the size of its backlog, in addition to new opportunities in managed services, cybersecurity, and digital transformation.

We expect growth to continue, with a focus not only on revenue growth but also on revenue quality, meaning an increase in the contribution of value-added services and solutions while improving margins and operational efficiency.

At the same time, we are monitoring several factors, including the timing of project launches and revenue recognition, collection speed, financing costs, and credit provisions. We also continuously assess the economic environment and competition in the IT market to maintain our competitive advantage.

Overall, the strength of the backlog and the diversity of the company’s portfolio provide us with a good degree of visibility for H2 2026.

Q: Could you explain the company’s dividend policy?

A: The company seeks to balance providing attractive returns to shareholders with retaining sufficient liquidity to finance growth, working capital, and project execution.

The general assembly approved in June 2026 the delegation of authority to the board to distribute interim dividends for this year, providing the company with flexibility to consider distributions based on financial performance, cash flows, and investment and financing requirements.

Accordingly, any future dividends will take into account profitability, cash flows, debt levels, working capital requirements, and growth plans, while maintaining a balance between shareholder interests and sustainable growth.

Q: What are the company’s key growth and expansion plans for the coming period? Is it considering adding new segments or services, or pursuing acquisitions to support its business? Which activities does the company see as its main future growth drivers?

A: Our strategic direction focuses on gradually shifting from a model that relies more heavily on traditional projects toward a balanced portfolio combining projects, recurring services, and value-added technology solutions.

We particularly focus on four key areas: managed services, which is one of the fastest-growing segments and among those with the greatest ability to generate recurring revenue. This is in addition to cybersecurity that particularly focuses on accelerating digital transformation and increasing requirements for protecting data and systems. The segments also include digital solutions, software, and artificial intelligence (AI) to increase the contribution of scalable products and services. This is along with operations and maintenance and contact centers that focus on improving efficiency, margins, and expanding the customer base.

The company is also continuing its geographical expansion and diversifying its presence across regional markets by entering new markets and capitalizing on opportunities outside Saudi Arabia.

2P has already begun expanding into Egypt and Syria through our presence in these markets, while continuing to assess opportunities to expand into other regional markets, most notably Libya.

The company continuously evaluates expansion, partnership, and acquisition opportunities that could add technological capabilities, customer bases, or new solutions, provided that any potential acquisition is aligned with its strategy and creates clear value for shareholders.

Examples of the company’s continued efforts to expand in these areas include obtaining a license to provide cybersecurity services and winning major contracts in managed services and digital solutions.

We believe the next phase will be driven by profitable and sustainable growth, improving the revenue mix, and strengthening recurring services, with cybersecurity, managed services, digital transformation, and AI serving as key growth drivers.