Makkah Construction and Development (4100) investor relations material

Executive summary

• Revenue for H1 2026 surged 53% year-over-year to SAR 952 million, driven by strong performance across hospitality, retail, and Hajj segments, and a successful Hajj season.

• Net profit increased 14% to SAR 335 million, with significant contributions from the mall, hotel, and Hajj businesses.

• Adjusted free cash flow rose 81% to SAR 298 million, excluding the SAR 951 million Ajyad land acquisition, which is treated as a strategic investment.

• Strategic initiatives advanced, including the Ajyad land acquisition, Makkah Hotel & Towers renovation, and participation in the Masar Gardens project.

Financial highlights

• Revenue reached SAR 952 million, up 53% year-on-year; net profit rose 14% to SAR 335 million.

• EBITDA increased 12% to SAR 360 million; earnings per share improved to SAR 1.67, up 14%.

• Operating cash flow more than doubled to SAR 360 million; adjusted free cash flow was SAR 298 million.

• CapEx totaled SAR 1,013 million, mainly due to the Ajyad land acquisition; reported free cash flow was negative SAR 653 million.

• Gross profit margin stood at 39.7%.

Outlook and guidance

• Renovation works at Makkah Hotel & Towers are scheduled for low-season quarters to protect peak revenue periods; ongoing room closures expected to impact RevPAR and available keys.

• Mall guidance: available area ~17,700 sqm, lease rate ~SAR 17,700/sqm, with H1 performance ahead of this.

• Hajj segment guidance: gross margin of 5%-6% and capacity of 60,000-70,000 pilgrims for 2026; actual H1 saw 87,904 pilgrims and 3.6% margin.

• Focus remains on margin improvement in Hajj and disciplined execution of strategic projects.

• Major development projects, including Masar Gardens and Ajyad, are expected to enhance long-term growth.