National Industries Group Holding S.A.K

1. Company Overview & Earnings Context

National Industries Group Holding – KPSC (NIG) is a Kuwait-listed diversified investment holding company with operations spanning investments, real estate, industrial activities and services. During H1 2026, the Group reported lower profitability from continuing operations, mainly due to weaker fair value gains on financial assets, despite higher dividend income and stronger contributions from associates. The period also included the disposal of its subsidiary NICBM, resulting in a one-off gain from discontinued operations.

2. Financial Performance Snapshot

• Revenue from Sales & Contracts: KD 48.79 Million (-16.3% YoY)

• Gross Profit: KD 6.34 Million (-29.2% YoY)

• Profit Before Tax (Continuing Operations): KD 14.00 Million (-69.2% YoY)

• Profit from Continuing Operations: KD 13.79 Million (-69.6% YoY)

• Profit for the Period: KD 19.97 Million (-57.6% YoY)

• Earnings Per Share (EPS): 5.0 Fils (vs. 15.7 Fils in H1 2025)

Compared with H1 2025:

• Revenue declined 16.3% to KD 48.79 million.

• Gross profit declined 29.2% to KD 6.34 million.

• Profit before tax from continuing operations declined 69.2% to KD 14.00 million.

• Profit from continuing operations declined 69.6% to KD 13.79 million.

• Total profit for the period declined 57.6% to KD 19.97 million.

• Earnings per share decreased from 15.7 fils to 5.0 fils.

3. Operational Highlights & Key Metrics

• Total Assets: KD 1.63 Billion

• Total Equity: KD 714.64 Million

• Investment in Associates: KD 525.77 Million

• Financial Assets at FVTPL: KD 460.72 Million

• Financial Assets at FVTOCI: KD 123.96 Million

• Investment Properties: KD 44.97 Million

• Cash & Cash Equivalents: KD 160.75 Million

• Borrowings: KD 760.14 Million

4. Key Performance Drivers

The Group's earnings were impacted by a significant decline in fair value gains on financial assets compared with the previous year. However, this was partly offset by higher dividend income and an increase in the share of profits from associates. Additionally, the disposal of NICBM generated a one-time gain of KD 5.74 million, contributing to the overall profit for the period.

5. Outlook & Forward Guidance

Following the disposal of NICBM, National Industries Group continues to focus on its diversified investment portfolio, associate investments and real estate activities. The Group maintains a strong asset base and substantial liquidity while continuing to pursue long-term value creation across its core investment segments.

6. Investor Takeaway

National Industries Group delivered a mixed H1 2026 performance. While profitability declined due to weaker investment gains, the Group continued to benefit from strong associate contributions, healthy dividend income and a sizeable balance sheet. The successful disposal of NICBM also provided a one-off earnings boost, positioning the Group to focus on its remaining core investment portfolio.