ALEC Holdings (ALEC) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 56.0% to AED 13,896m and net profit increased 36.5% to AED 589.1m; Q3 revenue grew 38.4% to AED 4,906m and net profit rose 94.9% to AED 375.3m.

• Closing backlog was AED 29.4bn, equal to 1.7x trailing 12-month revenue; regional conflict disrupted deliveries, supply chains and market activity, while awarded projects remained on agreed timelines.

Financial highlights

• 9M gross profit was AED 1,075.8m (+25.2%); gross margin declined to 7.7% from 9.6%, reflecting the prior-quarter Energy Services gross loss.

• 9M EBITDA rose 36.0% to AED 959.8m, with margin at 6.9% versus 7.9%; Q3 EBITDA increased 87.5% to AED 519.4m, with margin at 10.6% versus 7.8%.

• 9M net profit margin was 4.2% versus 4.8%; Q3 net profit margin improved to 7.6% from 5.4%.

• 9M EPS was AED 0.118 versus AED 0.086; administrative expenses rose 13.9% to AED 356.1m but declined to 2.6% of revenue from 3.5%.

Outlook and guidance

• FY 2026 guidance: revenue growth ~45–50%, gross margin ~7.5–9.5%, EBITDA margin ~6.5–8.5%, capex ~3% of revenue and gross leverage ~1.0x.

• Medium-term targets: revenue CAGR ~7–8%, gross margin ~10–11%, EBITDA margin ~8–10%, capex declining to ~1% of revenue and gross leverage below 1.0x.

• Backlog coverage is expected to reach ~2.0–2.5x revenue over the medium term; AED 5,887m, or 20% of remaining performance obligations, was expected to be recognized in Q4 2026.

• Customer negotiations on conflict support continued; compensation remained uncertain, and no pipeline projects had been cancelled.