Maharah H1 profit jumps 49% on renewals, utilization rise

Maharah Human Resources Co. reported a 49% jump in H1 2026 net profit to SAR 132 million, driven by a higher utilization rate, strong client retention and new contracts worth more than SAR 270 million, CEO Abdulaziz Al-Kathiri told Argaam.

Revenue rose 26% to SAR 1.85 billion, with gross profit up 47% to SAR 204 million. The utilization rate climbed to 92% from 83%, and the company retained 98% of clients whose contracts expired during the period. Al-Kathiri said growth came from core operations, not investment income. "These results are a continuation of the clear path we set out in the 'Maharah Growth' strategy," he said.

Operating profit grew 60%, a metric Al-Kathiri called the real indicator of structural efficiency. "When operating profit grows faster than revenue, the improvement in efficiency is structural and sustainable," he said. Gross profit margin reached 11%, while the operating margin hit 7.3%.

Structural shift in the individuals segment

The individuals segment posted a sharp margin improvement, with gross profit margin rising to 18% from around 7%. Revenue in that segment grew 20% to SAR 283 million, and gross profit increased from SAR 16 million to SAR 51 million. Al-Kathiri attributed the change to investments in technology, including AI models for demand scheduling and transportation management. E-sales now account for more than 72% of orders, up from 42%. "The result has been a significant improvement in profitability – a structural improvement that we expect to sustain," he said.

The business segment led overall performance, generating revenue of SAR 1.507 billion, up 29%, driven by a 15% increase in workforce to more than 47,000 employees and 31% growth in professional staffing. The petrochemical sector grew 81% in the segment, and healthcare grew 32%. Saudi staffing outsourcing revenue rose 32% to SAR 124 million.

New contracts worth SAR 270 million signed in H1 will begin contributing in the second half, Al-Kathiri said. The company also completed partial early repayment of its long-term loans in July, part of a financial transformation plan that cut financing costs 46% to SAR 12.5 million. "The objective is not to reduce debt for its own sake, but to achieve a more efficient capital structure," he said.

Competition and ESG

On competition from lower-priced entrants, Al-Kathiri said Maharah competes on quality and reliability, not price. "We have retained 98% of clients whose contracts expired. In my view, these two figures are more telling than any other indicator." The company's agreement with ManpowerGroup began operations this year, adding a specialized professional staffing line.

MSCI upgraded Maharah's ESG rating to B. Al-Kathiri said the rating reflects work started three years ago across environmental, social and governance pillars, with operational impact visible in governance standards and resource efficiency. "We have benefited significantly from these initiatives," he said. (See MSCI's profile page for the rating context.)

Outlook

Al-Kathiri said momentum should continue into H2, supported by the contract renewals and new agreements. The company is targeting revenue growth of 6-7% in the business segment and 15-18% in the individuals segment, with workforce growth of 27-30% in the individuals segment. The 2026 guidance ranges – revenue growth of 10-13%, workforce growth of 10-12%, gross profit margin of 10-12%, and net income margin of 7-9% – remain the benchmark. "We are working to achieve all of our full-year targets and exceed some of them," the CEO said.

The associate Saudi Co. for Health Systems saw its profit contribution decline by SAR 18.1 million in H1, but Al-Kathiri said an improvement is expected after a new catering project started in late Q2. He noted that despite the decline, Maharah's core profit grew 49%.