Dar Al Arkan Real Estate Development Company (4300) Q4 2025 earnings summary

Executive summary

• FY 2025 saw revenue growth of 3.8% year-over-year, reaching SAR 3,900 million, driven by increased sales of residential properties and project management revenue.

• EBITDA surged 42.5% to SAR 2,446 million, with a robust margin of 63%, reflecting improved gross margins and higher income from associates.

• Net profit rose to SAR 1,134 million, up 40% year-over-year, with net margin expanding to 29.1%.

• Strong liquidity position with SAR 7.5 billion in cash and bank balances, supporting ongoing investments and debt service.

Financial highlights

• Gross profit increased 15.3% year-over-year to SAR 1,844 million, with gross margin improving by 4 percentage points to 47%.

• SG&A expenses decreased by 3.7% year-over-year, mainly due to lower salary and travel costs.

• Book value per share rose to SAR 20.6, up from SAR 19.5 in 2024.

• Cash and trade receivables totaled SAR 10.3 billion, with gross debt at SAR 16.0 billion.

Outlook and guidance

• The company expects continued revenue and profitability growth, supported by a strong project pipeline and higher contributions from Dar Global.

• Saudi government forecasts robust economic expansion, with GDP growth projected at 4.5% for 2025 and further increases in subsequent years.

• Budget deficits are expected to persist but at manageable levels, with government spending supporting real estate demand.