Dar Al Arkan Real Estate Development Company (4300) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw robust revenue and profit growth, driven by strong development property sales and improved margins, with revenue for the nine months reaching SR 2.8 billion and net profit up 55% to SR 703.6 million.

• Liquidity and balance sheet strength were maintained, with significant cash reserves and prudent debt management.

• Expansion of the project pipeline in KSA and internationally, with Dar Global contributing to future growth and now classified as an associate after its London Stock Exchange listing.

• Gross profit margin improved to 50.5% from 41.9% year-over-year, reflecting lower cost of revenue.

• Earnings per share for the nine months rose to SR 0.65 from SR 0.42 year-over-year.

Financial highlights

• Q3 2025 revenue rose 10.7% YoY and 19.4% QoQ to SAR 1,017 mn; LTM revenue reached SAR 3,815 mn, up 21% YoY; nine-month revenue was SR 2.8 billion.

• Gross profit increased 45.1% YoY and 45.5% QoQ to SAR 598 mn; gross margin improved to 58.8% in Q3 and 50.5% for the nine months.

• EBITDA for Q3 2025 surged 104.9% YoY and 61.3% QoQ to SAR 749.8 mn; LTM EBITDA up 41% YoY to SAR 2,211 mn.

• Net profit for Q3 2025 was SAR 255.6 mn, up 89.7% YoY; LTM net profit and nine-month net profit both reached SAR 703.6 mn.

• Cash and bank balances stood at SAR 8,532 mn, up from SAR 5,246 mn in Q3 2024 and SR 6.72 billion at year-end 2024.

Outlook and guidance

• Moderate GDP growth expected for Saudi Arabia in 2025, with non-oil sectors cushioning oil sector softness.

• Management’s internal evaluation indicates a 20% average uplift in the market value of development properties, with continued use of conservative valuation methods.

• Continued expansion in development properties and international projects expected to drive future revenue and profitability.

• Sufficient liquidity to cover operating expenses and debt maturities for the next three years.

• The real estate sector is stabilizing with a lower price trend, but value is maintained through diversified projects and conservative financial management.