Maharah H1 2025 profit down 49% to SAR 52.1M; Q2 at SAR 28.4M

Maharah Human Resources Co. posted a net profit decline of 49% to SAR 52.1 million in the first half of 2025, from SAR 101.5 million in the prior-year period.

The profit decline is attributed to lower gross margins in the main segments due to a decline in margins in the corporate services segment in order to retain strategic clients and sustain growth in revenue and workforce. The individual segment was affected by pricing pressure resulting from competition despite the growth in utilization rate and headcount, particularly in the individual services.

G&A expenses increased by SAR 5.1 million, mainly due to human capital investment programs, which include long-term employee incentive programs and training programs.

The company’s share of profits from associates (Care Shield and SMS) decreased by SAR 47 million compared to the same period of the previous year. This was due to a decline in the profits from Care Shield, and the non-recognition of the share in results of SMS for the six-month period ended June 30, 2025, as the company was unable to obtain the interim financial results for the current period.

Additionally, the company reported a loss of SAR 15.8 million in the current period related to the disinvestment of discontinued operations of Nabd (the logistics segment), compared to SAR 6 million in the same period of last year due to liquidation of the company. Accordingly, the financial results were excluded from the group's continuing operations for both the current and comparative period and was presented under discontinued operations.

Meanwhile, other operating income increased by SAR 6.6 million in the current period compared to the same period last year, due to the sale of an unutilized accommodation and government subsidy for Saudization.

In Q2 2025, Maharah’s bottom line fell 45% to reach SAR 28.4 million, compared to SAR 51.25 million in the second quarter of 2024.

On a sequential basis, net earnings grew by 20.1% from SAR 23.68 million in Q1 2025.

Shareholders’ equity, excluding minority interest, reached SAR 644.1 million as of June 30, 2025, down from SAR 635.6 million a year earlier.

Attached document :

View More Financial Results