GB Corp reported its consolidated financial results for Q1 2026, showing strong revenue growth alongside a decline in net profit due to higher financing costs and increased provisions.
The company recorded consolidated revenues of EGP 21,570.8 million, up 28.7% year-on-year, supported by solid performance across both the automotive and financial services segments.
Profitability Pressure Despite Revenue Expansion
Gross profit reached EGP 2,883.5 million, increasing by 4.8%, with a gross margin of 13.4%. Earnings before interest and tax (EBIT) stood at EGP 1,469.2 million, up 1.7% year-on-year.
However, net profit after tax and minority interests declined by 30.4% to EGP 435.8 million, impacted by higher financing costs, increased provisions, and regional geopolitical challenges.
Automotive Segment Drives Operational Growth
The automotive segment, operated under GB Corp, delivered strong performance with revenues reaching EGP 17,734.9 million, up 22.6% year-on-year.
Passenger cars revenue increased by 20.4% to EGP 13,839 million, supported by a 42% sales growth in the Egyptian market. The company maintained an 18.3% market share and strengthened its position in extended-range electric vehicles (REEVs) with a 44.7% share.
The company also began production at its Sadat industrial facility, which is scheduled for official inauguration in June 2026, supporting its localization strategy.
Strong Expansion in Financial Services
The financial services segment, operated through GB Capital recorded exceptional growth, with revenues rising 66.8% to EGP 4,178.1 million.
Net profit increased significantly, supported by strong expansion in lending activities. The loan portfolio reached EGP 21.6 billion, growing 44.4% year-on-year, while maintaining a low non-performing loan ratio of 2.5%.
Strong Performance Across Subsidiaries
Leasing and factoring portfolios reached a record EGP 14.9 billion, while Drive also maintained strong portfolio expansion.
Meanwhile, MNT-Halan reported a 50% revenue increase, driven by expansion in Turkey and Pakistan.
Ownership Structure and Key Drivers
The company’s ownership structure includes 36.6% held by the Ghabbour family, while free float stands at 63.4%. Nader Ghabbour serves as Managing Director.
GB Corp attributed the decline in net profit to higher financing costs, increased provisions, and geopolitical pressures in regional markets, partially offset by investment gains and foreign exchange differences.
Overall Performance Outlook
The Q1 2026 results highlight GB Corp’s ability to deliver strong top-line growth and expand operational scale across automotive and financial services, despite near-term pressure on profitability.
