Dar Al Arkan Real Estate Development Company (4300) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw robust revenue and EBITDA growth, supported by strong real estate demand and higher oil revenues in Saudi Arabia.

• Revenue for the six months ended 30 June 2026 rose to SR 2.34 billion, up from SR 1.78 billion year-over-year, with net profit increasing to SR 499 million from SR 448 million.

• The company maintains a strong liquidity position, with significant cash reserves and prudent debt management.

• Ongoing diversification and expansion in both domestic and international markets, including a growing global project pipeline.

• Gross profit margin improved, and earnings per share for the six-month period reached SR 0.46, compared to SR 0.41 in the prior year.

Financial highlights

• Q2 2026 revenue rose 38.5% year-over-year to SAR 1,180 mn; EBITDA increased 33.3% YoY to SAR 620 mn.

• Gross profit for the six months was SR 1.06 billion, up from SR 817 million year-over-year.

• Net profit for Q2 2026 was SAR 238.7 mn, up from SAR 238.6 mn in Q2 2025.

• Cash and bank balances reached SAR 8.5 bn, with gross debt at SAR 17.6 bn.

• Total assets grew to SR 43.68 billion from SR 41.61 billion at year-end 2025.

Outlook and guidance

• Saudi Arabia's real GDP growth projected at 4.6% for FY 2026, driven by non-oil private sector expansion.

• Management expects continued stability in the real estate sector, with internal evaluations indicating a 20% average uplift in development property values.

• Continued economic diversification and government support expected to sustain real estate demand.

• Higher estimated GDV from global projects anticipated to drive future revenue and profitability.

• No significant impact is anticipated from upcoming IFRS 18 adoption, though presentation changes are expected.