Dar Al Arkan Real Estate Development Company (4300) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 24.8% YoY to SAR 1,163 mn, with net profit up 24.3% to SAR 260.2 mn, driven by higher bulk land sales and improved product mix.

• EBITDA for Q1 2026 increased 40.7% YoY to SAR 607.9 mn, with a margin of 52%.

• Gross profit margin improved to 45.8% from 43.6% YoY, reflecting stronger profitability in development properties and leasing.

• SG&A expenses decreased 23.4% YoY due to operational synergies and cost optimization.

• Earnings per share increased to SAR 0.24 from SAR 0.19 in Q1 2025.

Financial highlights

• Q1 2026 revenue: SAR 1,163 mn (Q1 2025: SAR 932 mn); LTM revenue: SAR 4,131 mn (up 8.0% YoY).

• Q1 2026 gross profit: SAR 533 mn (up 31.0% YoY); gross margin: 45.8%.

• Q1 2026 EBITDA: SAR 607.9 mn (up 40.7% YoY); EBITDA margin: 52%.

• Net profit for Q1 2026: SAR 260.2 mn (up 24.3% YoY); net margin: 22.4%.

• Book value per share increased to SAR 20.8 (Q1 2025: SAR 19.7).

Outlook and guidance

• Anticipates continued revenue and profitability growth, supported by a robust project pipeline and higher GDV from Dar Global.

• Management’s internal evaluation indicates a 20% average uplift in development property values, with ARR assumptions of 3-5%.

• Non-oil sector expansion and government reforms expected to underpin economic stability and real estate demand.

• Budget deficit projected at 3.3% of GDP for FY 2026, with fiscal sustainability measures in place.

• No borrowing costs were capitalized during the period; all were expensed.