Elm eyes 19% rise in revenues, 23% in profit margins in 2026: CEO

Mohammed Alomair, CEO of Elm Co. 

Elm Co. is targeting revenue growth of around 17% to 19% in 2026, with earnings before interest and taxes (EBIT) margin ranging between 21% and 23%, and operating cash flows at 85% to 95% of net profit.

CEO Mohammed Alomair said the company’s strategy focuses on transforming projects into sustainable products, expanding artificial intelligence solutions, and increasing long-term recurring revenues.

Speaking during the investor call to discuss the 2025 financial results — attended by Argaam — Alomair noted that Elm is entering 2026 with a strong financial base and comfortable liquidity. The company will focus on improving operational efficiency and leveraging synergies following the acquisition of Thiqah to achieve sustainable growth. 

He explained that throughout 2025, Elm concentrated on managing growth amid a more conservative economic environment, while accelerating post-acquisition integration of Thiqah Business Services. The priority during this phase was to achieve operational alignment, optimize expenses, and maximize returns from acquired assets.

The CEO added that operational integration was completed in early February 2026, ahead of the original two- to three-year plan. The company expects to realize cost savings ranging between SAR 70 million and SAR 80 million this year.

Management is also restructuring certain activities within Thiqah by establishing three specialized units focused on the justice and real estate sectors, development and economic sectors, as well as accreditation and safety services in the logistics sector. The aim is to convert operations into recurring revenue-generating products.

The CEO added that in 2026, the company will focus on transforming several existing projects into long-term operational platforms, in addition to selectively expanding public-private partnership (PPP) projects.

For his part, Majed Al-Otaibi, CEO of Government Products Group at Elm, said the 2025 product strategy focused on maximizing value from existing platforms while continuing to develop new services within core products.

He added that the company launched five new products and 33 services that have already begun generating revenue during the year. Services launched in 2024 generated SAR 277 million in revenue during 2025.

The 2026 plan includes launching nine new products and 48 services across sectors including logistics, Hajj and Umrah, and the justice and real estate sectors. These are expected to generate around SAR 300 million in revenue, Al-Otaibi said.