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ADES Holding's jack-up rig
United Securities released a report on ADES Holding Co., stating that the company’s Q3 2025 revenue of SAR 1.7 billion surpassed its forecast by 4.2%.
ADES Holding delivered a pressured set of results in Q3 2025, due to weaker onshore operations, in addition to higher depreciation expenses and financing costs, the brokerage stated. It also expected this trend to continue in the near term, with the possibility of recovery starting in 2026 in conjunction with the gradual reactivation of the idle drilling rigs.
The research firm highlighted that the broader industry environment is shifting following OPEC’s decision to reverse production cuts. This has already been reflected in a notice from Saudi Arabia to resume activity on one offshore rig and several onshore rigs that were previously suspended, supporting expectations for an operational recovery in 2026.
United Securities believes that with a strong order backlog of SAR 28.3 billion and a probable average execution period exceeding 5 years, there is a clear vision for revenue growth, and the resumption of activity in Saudi Arabia is expected to support a recovery in profitability over the coming years.
The firm expects ADES to post a net profit of SAR 772 million in 2025, rising to SAR 957 million in 2026.
United Securities raised its target price (TP) for ADES Holding to SAR 17/share while maintaining its “Neutral” rating, reflecting an improving operating backdrop.
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