Theeb Rent a Car Q1 2026 Net Profit Falls 24% Despite Revenue Growth
Theeb Rent a Car Company (4261) posted a net profit of SAR 34.5 million for Q1 2026, a 23.95% decline year-on-year, even as revenue grew 21.6% to SAR 409.55 million.
Key Numbers
Theeb Rent a Car Company (4261) announced its interim financial results for the three months ended March 31, 2026, reporting a net profit of SAR 34.5 million, down 23.95% year-on-year, while revenue rose 21.6% to SAR 409.55 million.
Key Financial Results
| Item | Current Quarter (SAR million) | Comparable Quarter (SAR million) | Change % |
|---|---|---|---|
| Revenue | 409.55 | 336.68 | +21.645% |
| Gross Profit | 119.49 | 113.18 | +5.572% |
| Operating Profit | 61.53 | 67.48 | -8.82% |
| Net Profit | 34.50 | 45.36 | -23.951% |
| Earnings Per Share (SAR) | 0.53 | 0.70 | -24.29% |
Highlights from the Statement
The company attributed the YoY revenue growth to a 15% increase in both short-term and long-term rental segments, supported by new branch openings, and a 48% surge in used car sales revenues. Conversely, the net profit decline was driven by marginally lower fleet utilization rates in the rental segment, higher expected credit loss provisions reflecting increased market credit risk, and reduced profitability in the used car sales segment due to declining selling prices.
On a quarter-on-quarter basis, revenue increased 4.5% driven by a 24% rise in car sales segment revenues, while net profit fell 6.6% due to decreased fleet utilization rates from business seasonality and lower profitability in used car sales.
Guidance
The company did not provide specific forward guidance in the announcement.
Impact on the Stock
The stock has not traded since the announcement, but the earnings decline is likely to weigh on investor sentiment in the short term, especially with EPS dropping from SAR 0.70 to SAR 0.53.
What This Means for Investors
Despite strong revenue growth, the decline in profitability reflects operational pressures and challenges in the used car sales segment. Investors should monitor fleet utilization rates and profit margins in coming quarters to assess the sustainability of growth.
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