Aldar Properties (ALDAR) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong momentum with revenue rising 39% year-on-year to AED 7.8 billion, EBITDA up 36% to AED 2.5 billion, and net profit after tax increasing 22% to AED 1.9 billion, driven by robust development sales, new launches, and recurring income from organic expansion and acquisitions.

• Development sales surged 42% year-on-year to AED 8.9 billion, with UAE sales to expats and overseas buyers comprising 87% of total UAE sales and a record backlog of AED 55.7 billion providing revenue visibility for 2–3 years.

• Net profit before tax rose 33% year-on-year to AED 2.2 billion.

• Total assets reached AED 92.28 billion as of 31 March 2025.

• Shareholders approved a cash dividend of AED 1.45 billion for 2024, paid in April 2025.

Financial highlights

• Q1 2025 revenue: AED 7.8 billion (+39% YoY); EBITDA: AED 2.5 billion (+36% YoY); net profit after tax: AED 1.9 billion (+22% YoY); gross profit: AED 2.8 billion (+37% YoY); EPS: AED 0.20 (+25% YoY).

• Effective tax rate rose to 12.64% from 4.06% due to new UAE tax rules.

• Cash and cash equivalents stood at AED 10.2 billion, with AED 19.3 billion in undrawn committed credit facilities.

• Operating cash flow for Q1 2025 was AED 1.28 billion, up from AED 329 million in Q1 2024.

• Gross margin for Q1 2025 was 35.7%, net margin 24.5%, and return on equity (annualized) 18.1%.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: Group EBITDA targeted at AED 10.4–10.8 billion (+35% vs. 2024), development sales AED 36–39 billion, Aldar Development EBITDA AED 6.6–7.0 billion, Aldar Investment adjusted EBITDA AED 3.2–3.3 billion.

• Gross profit margin for UAE property development expected at 34–36%.

• Management expects continued strong performance, supported by a record backlog and robust demand from both local and international buyers.

• Hospitality and leisure segment revenue is seasonally higher in Q1 and Q4; Q1 results are not necessarily indicative of full-year performance.