Earnings & Results
Elm Lowers 2026 Revenue Growth Guidance to 14%-16% From 17%-19%
By News Desk ·
Key takeaways
- Elm's management cut its 2026 revenue growth forecast to 14%-16% from 17%-19%.
- Elm's nine-month revenue rose 16.99% and net profit increased 18.42%, including a SAR 59 million one-time gain.
- Elm signed a five-year contract with SASO in September 2026 with expected revenue of about 15% of its total revenue.
Elm Co.'s management lowered its 2026 revenue growth forecast to 14%-16% from 17%-19%, citing continued pressure on its operations, Argaam reported on November 2, 2026. Elm is a Saudi company whose business includes digital government platforms and technology services, and it holds contracts such as a five-year product safety platform project with SASO.
Elm's Lowered 2026 Growth Guidance
The revised range of 14%-16% replaces the earlier 17%-19% forecast. Elm's management tied the reduction to continued pressure on the company's operations. The guidance covers 2026 revenue growth, and the company published the change through its own announcement.
The cut follows a third quarter in which Elm reported revenue growth of 10.10% year-over-year, with net profit after Zakat rising 39.18%, according to TradingView. Nine-month revenue increased 16.99%, and net profit rose 18.42%, including a non-recurring SAR 59 million acquisition-related gain.
Contracts Signed Before the Guidance Cut
Elm signed a contract with SASO on September 22, 2026 to develop and operate a Product Safety Platform, with expected revenue of about 15% of its total revenue, Argaam reported. The five-year project is based on revenue sharing linked to transactions, and Elm's 2025 revenue was about SAR 9.46 billion.
On September 8, 2026, Elm subsidiary Thiqah Business Services signed a five-year contract with the Ministry of Commerce to digitize services, starting September 3, Argaam reported. The revenue-sharing agreement is expected to generate nearly 19% of Elm's total revenue over its term.
Cement Peers' Third-Quarter Results
Nomura maintained its 'Reduce' rating on ACC and cut its target price to Rs 1,000 on October 30, 2026, citing persistent cost pressures and weak volumes, Business News Today reported. Nomura lowered FY27-29 EBITDA estimates by 10-15%.
Cemex reported a 12% increase in third-quarter operating cash flow, with EBITDA rising to $990 million, Reuters reported on October 26, 2026. Holcim's CEO said acquisitions drove third-quarter revenue up 16% to 4.7 billion francs, NZZ reported on October 24, 2026.
What Comes Next for Elm
Elm's 2026 revenue growth is now guided at 14%-16%, the range management set on November 2, 2026. The company's third-quarter results, published before the guidance change, showed revenue growth of 10.10% year-over-year and net profit after Zakat up 39.18%.