Dar Al Arkan Real Estate Development Company (4300) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached SAR 3,826 mn, up 36.3% YoY, with EBITDA at SAR 1,760 mn, and book value per share rising to SAR 19.7.

• Revenue for Q1 2025 was SR 932.0 million, up 7.8% YoY, with net profit rising to SR 209.3 million, a 36% increase from Q1 2024.

• Strong liquidity with SAR 6.5 bn in cash and a robust asset base of SAR 20.5 bn at cost.

• Continued expansion in development properties and successful project launches in KSA and internationally.

• The group maintained compliance with all financial covenants and continued to focus on real estate development and leasing.

Financial highlights

• Q1 2025 revenues increased 7.7% YoY, driven by higher development property sales and project management income.

• Gross profit rose 14.3% YoY, with margin improving by 3% YoY to 46%.

• EBITDA increased 11.3% YoY to SAR 432 mn, with a healthy margin of 46%.

• Net income for Q1 2025 was SAR 209 mn, up from SAR 154 mn in Q1 2024.

• Cash flow from operations remained strong, supporting ongoing investments and debt repayments.

Outlook and guidance

• Saudi GDP projected to grow 4.6% in 2025, with continued government support for real estate and infrastructure.

• Ongoing expansionary fiscal policy and Vision 2030 initiatives expected to sustain sector growth.

• Management expects continued stabilization in real estate transaction volumes and a conservative uplift in development property values.

• Company expects to maintain strong liquidity and prudent investment in development properties.

• The group is awaiting regulatory approval for a major contract (Shams Ar Riyadh project) valued at SR 6.7 billion.