Investment case
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solutions by stc plays a pivotal role in driving the digital transformation and growth of hundreds of public and private organizations across the Kingdom. With a strong foundation of market leadership, promising growth potential, and exceptional returns, the Company continues to deliver unmatched value to its shareholders.
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solutions by stc is the undisputable leader in the Saudi Arabian ICT services market. The Company is well-positioned to capitalize on lucrative consolidation opportunities in the fragmented IT market of KSA. With a strong local content score of 42.6%, solutions by stc continues to reinforce its role as a key driver of digital transformation in the region.
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With a strong pipeline of projects and a long-standing partnership with stc, solutions by stc has built a strong and diversified portfolio that underpins its sustained growth. The Company boasts an impressive winning ratio of over 77% in 2025, reflecting its ability to secure and execute high-value contracts. This momentum is further highlighted by the signing of more than 220 customer contracts in 2025 across various industries.
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solutions by stc consistently delivers strong financial performance, achieving a return on invested capital (ROIC) of 31.5% in 2025, which is well above its cost of capital. This exceptional value creation highlights the Company’s ability to generate high returns for its stakeholders while maintaining a disciplined approach to investment and growth.
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With an organic CAPEX-to-revenue ratio of just 1.5% in 2025, solutions by stc operates an asset-light business model that enables scalability and operational efficiency. This strategic approach allows the Company to maximize profitability while maintaining flexibility in a rapidly evolving digital landscape.
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solutions by stc maintains a solid track record of sustainable free cash flow generation, supported by a resilient business model and strong execution.
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For 2025, the Board of Directors has recommended an ordinary dividend of & 8.0 per share. This implies a payout of 63% of net profit for the year, in line with the Company’s progressive dividend policy and reinforcing its commitment to sustainable shareholder value.
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solutions by stc maintains a healthy financial position, ending 2025 with a net cash balance of & 1.3 billion, which represents 0.7x its last twelve months (LTM) EBITDA. This solid balance sheet provides the Company with the financial resilience to pursue strategic investments while maintaining financial stability.
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The Company follows a disciplined capital allocation strategy focused on high-return organic capex, value-accretive M&As, and high-potential partnerships and PPP projects. With a commitment to progressively rising dividends, solutions by stc continues to enhance long-term value creation for its stakeholders.
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