ALEC Holdings (ALEC) Q3 2025 earnings summary

Executive summary

• Achieved record 9M 2025 revenue of AED 8.9bn, up 66% YoY, with Q3 revenue at AED 3.5bn, driven by robust backlog conversion and operational excellence.

• EBITDA for 9M 2025 rose 83% YoY to AED 706m (margin 7.9%), and net profit more than doubled to AED 432m (margin 4.8%).

• Backlog reached AED 32.9bn as of September 2025, providing 2.8x trailing twelve months revenue coverage and multi-year visibility.

• The group completed its IPO on the Dubai Financial Market in October 2025, with 20% of shares sold to the public and 80% retained by the parent.

• Strategic focus on high-growth sectors such as energy infrastructure and data centres is driving momentum.

Financial highlights

• 9M 2025 revenue: AED 8,906m (+66% YoY); Q3 2025 revenue: AED 3,544m (+82% YoY).

• 9M 2025 EBITDA: AED 706m (+83% YoY, margin 7.9%); Q3 2025 EBITDA: AED 277m (+88% YoY, margin 7.8%).

• 9M 2025 net profit: AED 432m (+116% YoY, margin 4.8%); Q3 2025 net profit: AED 193m (+172% YoY, margin 5.4%).

• Gross profit for 9M 2025 was AED 859m (margin 9.6%), up from AED 551m YoY.

• Free cash flow to firm for 9M 2025 was AED 624m.

Outlook and guidance

• 2025 revenue fully covered by backlog; management expects 50-52% revenue growth for 2025.

• Medium-term revenue growth expected at 50-55% in 2026E, then 7-8% CAGR.

• Gross profit and EBITDA margins expected to improve by 100-150bps; capex to decline to ~1% of revenue.

• Dividend policy reaffirmed: AED 200m in April 2026, AED 500m for FY 2026, and at least 50% of net profit distributed semiannually thereafter.

• Gross leverage ratio to remain below 1x.