In a sign of cautious optimism for Kuwait’s financial markets, a specialized economic report released by Al-Shall Consulting revealed that 134 companies listed on the Kuwait Stock Exchange recorded net profits totaling 763.5 million dinars in the first quarter of 2025. This marks a modest 1% increase from the 755.9 million dinars earned during the same period in 2024, signaling a steady — though restrained — improvement in corporate performance.
Compared to the fourth quarter of 2024, the improvement was more noticeable, with profits rising 11.3% from 686 million dinars. The report, published on Saturday, paints a picture of a market navigating mixed dynamics, where more than half of the listed companies showed signs of recovery or growth, reports Al-Jarida daily.
Out of the 134 companies analyzed, 71 firms demonstrated better performance than in Q1 of 2024. Among them, 56 companies increased their profits, while another 15 either reduced their losses or shifted from losses to profitability. Altogether, this means that 53% of companies that disclosed their results reported positive progress. Still, this is a decrease from 98 companies that reported improved results in Q1 of the previous year.
On the flip side, 63 companies saw their performance decline — 45 companies experienced a drop in profits, and 18 companies shifted from profit to loss or deepened their losses.
This compares unfavorably to just 36 underperforming companies in the same period last year, suggesting that while the broader market held steady, challenges remain.
The report also highlighted the market’s heavy reliance on a few key players. Ten top-performing companies contributed a staggering 502.2 million dinars — 65.8% of total profits. Meanwhile, the ten worst-performing firms posted combined losses of 16.9 million dinars (about $51.8 million).
Of the 13 sectors represented on the exchange 5 sectors reported profit growth, 6 sectors saw a decline, and 2 sectors moved from profit to loss.
Leading the charge was the telecommunications sector, which posted a dramatic 51.3% increase in profits — from 50 million dinars ($153.5 million) to 75.6 million dinars ($232 million). The consumer services sector followed closely, more than doubling its earnings from 15.6 million dinars to 32.1 million dinars (a 105.8% surge).
The energy sector also posted gains, climbing from 3.8 million dinars to 6.2 million dinars — a 60.5% increase.
However, not all sectors fared well. The industrial sector suffered the steepest drop in profitability, with earnings falling from 53.3 million dinars to 41.2 million dinars (a decline of 22.7%).
The banking sector retained its status as the most profitable, generating 405.2 million dinars ($1.243 billion) in net earnings. However, this too represented a slight decline of 1.4% from the 411 million dinars ($1.261 billion) posted in the same quarter last year.
The Q1 2025 earnings season underscores a complex and evolving landscape for Kuwait’s corporate sector. While the overall picture reflects resilience — with more than half the companies showing progress — the decline in the number of improving firms and increased losses in others suggest a still-uneven recovery. With a handful of large players driving most of the profits, the market may need broader strength across sectors to sustain momentum in the quarters ahead.
