ACICO Group, a full-service, multi-sector construction group, has announced solid results for the first quarter of 2026 registering a 23% growth in its operating revenues, thus reflecting robust growth despite the geopolitical disruptions.
Announcing its financial results for the first quarter ended March 31, ACICO said its operating revenues grew to KD22 million ($71.4 million) from KD17.93 million ($58.1 million) in the corresponding period of 2025, reflecting solid growth despite geopolitical disruptions.
Market conditions during the first quarter of 2026 witnessed increasing economic and geopolitical pressures, particularly toward the end of the quarter.
These included higher prices of certain building materials as a result of duties associated with anti-dumping measures, in addition to regional political tensions that led to limited availability of certain raw materials.
While these factors affected the Group’s first-quarter performance, ACICO demonstrated operational resilience in managing these developments and maintained its focus on efficiency and cost discipline. General and administrative expenses declined by 13% year-on-year, reflecting the effectiveness of ongoing efforts to optimize the cost structure and enhance the Group’s ability to adapt to evolving market conditions.
Finance costs decreased by approximately 50% to KD1.64 million, compared to KD3.31 million in the corresponding period of the previous year, reflecting the impact of the Group’s debt restructuring program.
The profit for the first quarter was KD174,000, demonstrating the underlying strength and adaptability of the Group’s operations in navigating a challenging environment.
In terms of the financial position level, total assets stood at KD242.96 million as of March 31, 2026, compared to KD240.87 million as of December 31, 2025.
Total equity reached KD30.29 million, while total liabilities stood at KD212.67 million, reflecting the Group’s ongoing efforts to strengthen its financial position.
On the results, Group Chairman Emad Abdullah Al Essa said: "The first quarter results of 2026 reflect the Group’s continued efforts to build on the progress achieved during the previous period, through a more flexible management and operational approach that is capable of responding to factors beyond the company’s control."
"Despite the geopolitical conditions affecting the region and the resulting operational and market challenges, in addition to regulatory developments related to the anti-dumping law and its impact on the industrial building materials sector, the Group continued to focus on reinforcing financial discipline, enhancing operational efficiency, and mitigating the impact of these challenges to the greatest extent possible, in support of its direction toward more sustainable profitability," stated Al Essa.
"The Group continues to move forward with the implementation of its strategic priorities, with a focus on strengthening its financial position, improving operational efficiency, and developing a more resilient business model that is capable of withstanding and adapting to market changes, thereby enhancing its ability to deliver sustainable performance across its core sectors," he noted.
"We remain focused on improving working capital efficiency and strengthening operational performance across manufacturing, logistics, and construction activities, while further developing our execution capabilities in line with market needs. At the same time, we continue to pursue viable opportunities in local and regional markets, reinforcing ACICO’s position as a trusted industrial and construction partner in housing, development, and infrastructure projects," he added.
On the operational front, the Group continued to execute its activities across manufacturing, contracting, and construction, during the first quarter of 2026, supported by its integrated business model that combines building materials manufacturing, construction expertise, and internal logistics coordination within a unified operating platform.
The Group also maintained its focus on improving productivity levels, enhancing asset efficiency, and strengthening execution quality in line with market requirements.
As part of its ongoing efforts to enhance the customer experience and support homeowners, ACICO continued to expand its network of partnerships with local banks, with the addition of Commercial Bank of Kuwait and Kuwait International Bank.
These partnerships aim to provide financing solutions and supporting benefits that facilitate the homebuilding journey, from planning through to execution and handover, reflecting the company’s commitment to delivering a more integrated and seamless experience for its customers.
ACICO Group affirmed that its priorities for the coming period will remain focused on reinforcing financial discipline, improving operational efficiency, strengthening the balance sheet, and pursuing measured expansion into viable opportunities. These priorities are aimed at supporting sustainable and balanced while maximising long-term value for shareholders. -TradeArabia News Service
