ALEC Holdings (ALEC) investor relations material

Financial performance highlights

• Q1 2026 revenue reached AED 4.6 billion, up 87% YoY, with net income more than doubling to AED 230 million, and EBITDA at AED 362 million, reflecting strong operating leverage.

• EBITDA margin was 7.9%, slightly down YoY, while net income margin improved to 5.0%.

• Capex for Q1 2026 was AED 100 million, supporting delivery capacity and long-term growth.

• Free cash flow to firm was negative AED 495 million, reflecting seasonal working capital outflows.

• FY 2025 dividends totaled AED 335 million, with FY 2026 guidance at AED 500 million.

Operational and strategic highlights

• Secured backlog stood at AED 26.7 billion as of Q1 2026, with 1.8x coverage of trailing twelve months revenue, providing multi-year visibility.

• Major project wins included Sphere Abu Dhabi (AED 6.2bn) and ADNOC Das Island EPC contracts (>AED 1.8bn), strengthening entertainment and energy platforms.

• Strong presence in UAE and expanding in KSA, with flagship projects in both markets and a diversified portfolio across sectors like energy, hospitality, data centers, and leisure.

• Operational excellence supported by a disciplined tendering process, prudent cost management, and a 46% tender success rate.

• High health, safety, and worker welfare standards, with ISO certifications and a low LTIFR of 0.104 per million manhours.

Segment performance

• Building & Construction revenue was AED 2,875 million with a gross margin of 6.8%, driven by ramp-up in major projects.

• Energy Solutions revenue reached AED 1,499 million, but gross margin declined to 2.9% due to project mix.

• Related Businesses contributed AED 1,297 million in revenue with a strong gross margin of 12.7%, reflecting value-added specialist services.