Makkah Construction and Development (4100) Q2 2025 earnings summary

Executive summary

• Achieved record performance and profits in H1 2025, reflecting strong execution of strategic initiatives and operational resilience.

• Asset enhancement and optimization of tenant mix in the commercial center drove revenue growth exceeding 19%.

• Interim consolidated financials for the three- and six-month periods ended 30 June 2025 were reviewed with no material misstatements found by the independent auditor.

• The company operates in construction, property development, and hotel management near Al Masjid Al Haram, with full ownership of two subsidiaries.

Financial highlights

• Revenue for H1 2025 reached SAR 624 million, up 16% from SAR 536 million in H1 2024.

• Net income increased 15% to SAR 294 million in H1 2025 from SAR 256 million in H1 2024.

• EBITDA grew 13% year-over-year to SAR 320 million.

• Earnings per share up 15% to SAR 1.47.

• Free cash flow increased 10% to SAR 164 million.

Outlook and guidance

• Hotel & Towers RevPAR expected to improve in 2025, following historical trends.

• Commercial Mall leasable area projected at 16,000–16,200 m² by year-end, with lease rates stable.

• Hajj service net income anticipated to remain at 2024 levels.

• Management notes that interim results may not reflect full-year performance due to seasonality, with higher revenues expected during Hajj and Umrah seasons.

• Continued focus on sustainable growth, asset enhancement, and market expansion.