Makkah Construction and Development (4100) Q2 2025 earnings summary

Executive summary

• Achieved record profits and 16% year-over-year revenue growth in H1 2025, driven by asset enhancement, strategic execution, and strong commercial mall and Hajj segment performance.

• Net income increased 15% to SAR 294 million, with EPS at SAR 1.47.

• Maintained a robust financial position with SAR 828 million in cash and a negative 22% gearing ratio.

• Significant expansion in Hajj operations, serving over 64,000 pilgrims, though revenue per pilgrim declined due to a shift to B2B contracts.

• Interim consolidated financials reviewed with no material misstatements by the independent auditor.

Financial highlights

• Revenue reached SAR 624 million, up 16% year-over-year; net income rose 15% to SAR 294 million; EBITDA grew 13% to SAR 320 million; EPS at SAR 1.47.

• Free cash flow increased 10% to SAR 164 million; operational cash flow up 6% to SAR 176 million.

• Cash position increased by SAR 605 million, supported by partial liquidation of Jabal Omar shares.

• Gross margin for the six months was 58.4%; net margin was 55.0%.

• Capex decreased to SAR 12 million from SAR 17 million year-over-year.

Outlook and guidance

• Hotel RevPAR expected to maintain or improve on historical trends, with continued focus on asset enhancement.

• Commercial mall leasable area projected to reach 16,000–16,200 sq m by year-end, with stable lease rates.

• Hajj segment income anticipated to remain at 2024 levels, with future focus on margin enhancement and targeted growth.

• Management notes interim results may not reflect full-year performance due to seasonality.