ACWA Power Reports Strong Financial Performance in 2025 with Expanding Global Energy and Water Portfolio
ACWA Power, a Saudi-listed company recognized as the world’s largest private developer of water desalination facilities and a major force in the global energy transition, has announced its consolidated financial results for the twelve months ending 31 December 2025. The company, which has also emerged as a pioneering developer of large-scale green hydrogen projects, reported strong operational and financial progress across its portfolio during the year.
The company recorded a net profit attributable to equity holders of the parent of SAR 1.9 billion for the full year 2025. Adjusted net profit, which offers a clearer view of the company’s underlying operational performance by excluding certain non-recurring items, increased significantly by 60% to reach SAR 2.2 billion. This notable improvement reflects the company’s expanding portfolio, operational efficiencies, and growing contributions from both new development projects and existing operating assets.
Operating income before impairment losses and other expenses rose by 20% year-on-year, reaching SAR 3.6 billion. The increase in operating income was driven primarily by stronger contributions from development activities and operational assets, highlighting the company’s ability to deliver value across different stages of its project lifecycle—from project development and construction to long-term operation and asset management.
Dr. Samir J. Serhan, Chief Executive Officer of ACWA Power, highlighted the company’s achievements during the year and emphasized its continued focus on strategic growth and operational excellence.
According to Dr. Serhan, 2025 was a record-breaking year for project financial closures. The company successfully completed financial close on 15 major projects with a combined investment value of approximately SAR 70 billion. This milestone underscores the company’s continued expansion and its growing role as a major global developer of large-scale energy and water infrastructure.
Among these projects were nine power purchase agreements (PPAs) and three water purchase agreements (WPAs), which significantly expanded the company’s generation and water production capabilities. In addition to these agreements, the company also completed strategic acquisitions in Bahrain, Kuwait, and China. Together, these initiatives added approximately 25 gigawatts of power generation capacity and 2.1 million cubic meters per day of desalinated water capacity to the company’s overall portfolio.
The expansion of operational assets was equally significant. During 2025, the company’s operational capacity increased by 13.2 gigawatts of power generation and 1.7 million cubic meters per day of desalinated water. As a result, by the end of the year, the company’s global portfolio had grown to 108 assets spanning 15 countries. These assets collectively represent 93 gigawatts of power generation capacity and 9.2 million cubic meters per day of desalinated water production.
The total value of assets under management reached SAR 437 billion, equivalent to approximately USD 117 billion. This growth reinforces the company’s position as a global leader in energy infrastructure development and water desalination technologies.
Dr. Serhan also acknowledged the contributions of Marco Arcelli, who previously led the company and played a key role in driving its growth momentum over the past three years. Building on that foundation, Dr. Serhan emphasized that the company will continue to refine its strategic priorities with a stronger focus on selectivity in market opportunities, operational transformation, and disciplined execution.
He stressed that future growth will prioritize profitability and efficiency, ensuring that every investment contributes directly to the company’s bottom line. This strategy will include strict project management standards, robust risk management practices, transparent project control systems, and rigorous change management processes.
Safety and operational readiness will remain key pillars of the company’s project execution strategy. Dr. Serhan noted that strong front-end planning, proactive risk identification, and operational preparedness are critical factors in ensuring successful project delivery and long-term performance.
From a financial perspective, Abdulhameed Al Muhaidib, Chief Financial Officer of the company, highlighted the organization’s progress in strengthening its financial position during the year. One of the major milestones in 2025 was the successful completion of a SAR 7.1 billion capital raise through a rights issue. This capital injection has significantly enhanced the company’s balance sheet and provided additional financial flexibility to support future investments and project development.
The funds raised through the rights issue are being deployed in accordance with the company’s approved capital allocation strategy, primarily directed toward funding its expanding pipeline of growth projects across global markets.
In addition to organic project development, the company also pursued strategic acquisitions to strengthen its operational footprint. The acquisitions completed in Bahrain, Kuwait, and China included nine projects with a combined capacity of 4.9 gigawatts of power generation and 1.1 million cubic meters per day of desalinated water production.
The majority of the newly acquired power capacity came from Kuwait and Bahrain, which together accounted for approximately 4.6 gigawatts of generation capacity. Meanwhile, the Chinese acquisitions contributed an additional 0.3 gigawatts. The desalination capacity associated with these acquisitions—totaling 1.1 million cubic meters per day—was primarily located in Kuwait and Bahrain.
Following the addition of new projects and acquisitions, the company’s total gross power generation capacity reached 93 gigawatts by the end of 2025. Notably, renewable energy now accounts for approximately 56% of the company’s power generation portfolio, representing 52.3 gigawatts of renewable capacity.
This transition toward renewable energy reflects the company’s strategic commitment to supporting global decarbonization efforts and accelerating the energy transition. Solar, wind, and other renewable technologies continue to play an increasingly important role in the company’s long-term growth strategy.
The company’s desalination capacity also expanded significantly, reaching 9.2 million cubic meters per day by the end of the year. This further solidifies its leadership position in the global water desalination sector, particularly in regions facing growing water scarcity challenges.
In addition to its power and water operations, the company continues to develop advanced energy storage and green hydrogen capabilities. Battery energy storage system capacity across the company’s portfolio reached 5.6 gigawatt-hours by the end of 2025, supporting grid stability and enabling higher levels of renewable energy integration.
The company’s operational portfolio—consisting of fully operational assets—now totals 43 gigawatts of power generation capacity and 6.3 million cubic meters per day of desalinated water production. It also includes green hydrogen production capacity of approximately 3,000 tons per year, highlighting the company’s early leadership in this emerging clean energy sector.
Operational reliability remained strong across the portfolio throughout the year. Power plant availability reached 91.2%, while water desalination facilities achieved an availability rate of 98.7%. These high availability levels reflect the company’s focus on operational excellence, maintenance efficiency, and asset performance optimization.
Safety performance also remained a top priority. The company maintained a lost time injury rate (LTIR) of 0.01 during 2025, unchanged from the previous year. This consistently low LTIR demonstrates the effectiveness of the company’s safety management systems and its ongoing commitment to maintaining safe working environments across its global operations.
Looking ahead to 2026, ACWA Power plans to continue expanding its global footprint while maintaining a disciplined approach to investment and operational management. The company’s strategic priorities will focus on safety, operational excellence, cost optimization, and sustainable growth.
Management has emphasized that the company will pursue growth opportunities selectively, ensuring that each project contributes meaningfully to long-term shareholder value. At the same time, the organization aims to strengthen partnerships with governments, utilities, and private sector stakeholders in key markets around the world.
Through its integrated approach to renewable energy, desalination, energy storage, and green hydrogen development, the company aims to play a pivotal role in addressing global energy and water challenges. By combining technological innovation with disciplined execution, ACWA Power continues to position itself as a leading contributor to the global transition toward sustainable energy systems and resilient water infrastructure.
As the company moves into the next phase of its growth journey, its leadership remains focused on delivering consistent value for shareholders, partners, and the communities it serves—guided by principles of ingenuity, integrity, and long-term impact.
Source Link: https://www.acwapower.com/
