Edarat Transformation and Information Technology Co (9557.SR) delivered a standout QQ4 2025, underpinned by a sharp revenue increase and meaningful margin leverage. Reported revenue of SAR 117.21 million for Q4 2025 climbed meaningfully versus prior-year periods, with gross profit of SAR 34.27 million and a gross margin of approximately 29.2%. Net income reached SAR 21.10 million, translating to an EPS of SAR 4.19. The quarter also showed EBITDA of SAR 34.27 million and an operating income of SAR 34.27 million, yielding an operating margin aligned with gross margin at roughly 29.2%. Net income margin stood at about 18.0% (net income SAR 21.10 million on revenue SAR 117.21 million).
A notable feature of QQ4 2025 is the substantial offset between EBITDA and net income caused by a negative 'total other income/expenses' line of SAR -34.27 million, resulting in a net income that remains positive but with a different earnings hook than EBITDA. Management commentary (as available) focused on robust project demand across advisory, data center, cloud migrations, workload migrations, and smart city/building initiatives in the Middle East region, with particular emphasis on government, telecom, banking, and large/medium enterprise sectors. The strong QoQ and YoY improvements suggest a favorable mix and operating leverage as project execution accelerates.
Looking ahead, the company indicated ongoing investments in cloud services, data center capabilities, and digital transformation offerings. However, there is limited public forward guidance for 2026 in the provided data; investors should monitor pipeline, project slate, and cadence of large-scale contracts to assess sustaining growth. Overall, QQ4 2025 positions Edarat as a rising player in Saudi IT services with improving profitability metrics, supported by a diversified service footprint and Saudi-market digitalization trends.