Solutions (7202.SE) 3Q26: Sales ahead of guidance at +10%; slight upside risk to FY26 growth

Citi's take on Solutions' 3Q26 results: revenue rose 9.6% YoY to SAR3,394mn, slowing from 11.7% in 2Q26 but remaining above FY26 guidance of 6-8%, and coming 1.1%/3.6% ahead of Citi/consensus. EBITDA grew 7.7% YoY to SAR580mn with margin down 0.3pp YoY to 17.1%, in line with Citi and 0.6pp above consensus. Reported net income was broadly flat YoY at SAR417mn and in line, but would have grown c.5% excluding SAR20mn of early retirement programme expenses. With 9M26 revenue growth at 9.2%, Citi sees slight upside risk to the 6-8% FY26 revenue guidance, potentially to 8-10%, versus its c.9% forecast and consensus at c.7%. However, upside to the 14-16% EBITDA margin guidance is seen as limited given the lower-margin 4Q mix, and elevated geopolitical uncertainty may keep management cautious. Earnings call expected October 29. Maintain Neutral, target price SAR102.