ALEC Holdings
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ALEC Holdings (ALEC) investor relations material

ALEC Holdings Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary12 Feb, 2026

Executive summary

  • Achieved record FY 2025 revenue of AED 12.6bn, up 56% YoY, driven by robust backlog conversion and operational excellence.

  • Net profit nearly doubled to AED 687m, margin up to 5.5% from 4.5% YoY, reflecting disciplined execution and strong project selection.

  • Board approved a dividend of AED 250m, up from AED 200m, reflecting strong results and commitment to shareholder returns.

  • Completed IPO on DFM in October 2025, with 20% of shares sold to the public; 81.6% owned by Investment Corporation of Dubai.

  • Major business reorganization and acquisitions under common control, including full ownership of ALEC Engineering and Contracting LLC.

Financial highlights

  • Q4 2025 revenue reached AED 3.7bn, up 36% YoY; EBITDA AED 400m (+65% YoY), margin 10.8%.

  • Gross profit for FY 2025 was AED 1.3bn (+58% YoY), margin 10.5%.

  • Free cash flow to firm was AED 813m; CapEx for FY 2025 was AED 387m.

  • Total assets grew to AED 10.6bn from AED 7.7bn; equity increased to AED 1.4bn.

  • Cash and cash equivalents at year-end were AED 1.6bn, up from AED 1.2bn.

Outlook and guidance

  • Entering 2026 with AED 30.4bn backlog, providing 2.4x revenue coverage; 58% expected to be recognized as revenue in 2026.

  • 2026 revenue growth guidance: 50-55%, with gross profit margin expected at ~10.3% and EBITDA margin at ~8.5%.

  • Medium-term revenue CAGR targeted at 7-8%, with gradual margin improvements.

  • CapEx to remain at 2-3% of revenue, declining to ~1% over time, supporting a capex-light model.

  • Dividend payout for FY 2026 planned at AED 500m.

Explain the Q4 gross margin expansion drivers
Elaborate on KSA project selectivity and growth
Reconcile FY25 capex with capex-light model
How do contract claims impact revenue recognition?
Future impact of Pillar Two tax on Group?
Subsidiary loan covenant non-compliance risk?
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