Makkah Construction and Development (4100) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 22% YoY to SAR 1.104bn and net profit increased 9% to SAR 416m, despite ~13% of hotel room capacity being out of service for renovation.

• Renovations and mall expansion advanced; renovated rooms returned to service at higher ADR, while Ajyad rock excavation began.

Financial highlights

• 9M revenue was SAR 1,104m (+22% YoY), gross profit SAR 470m (+15%), operating profit SAR 393m (+16%), EBITDA SAR 452m (+8%) and net profit SAR 416m (+9%).

• 9M EPS increased 9% to SAR 2.08; gross profit margin was 42.6%, down 2.3 pp, and EBITDA margin was 40.9%, down 5.1 pp YoY.

• Q3 revenue fell 47% to SAR 151m and net profit declined 5% to SAR 81m; EPS was SAR 0.40, down 5% YoY.

• 9M operating cash flow was SAR 406m, up 20%; investing cash outflow was SAR 1,111m versus inflow of SAR 695m in 9M 2025.

Outlook and guidance

• Management expressed confidence in full-year earnings growth, supported by asset quality and renovated rooms returning at higher ADRs.

• Remaining hotel rooms and Tower 2 renovation are expected to finish before Ramadan 2027; renovation work on the other two towers is planned to resume after Hajj.

• MCDC Mall leasing is on course to meet targeted 2027 rental income; Zone 2 completion is scheduled for Dec 2026.

• Ajyad design Phase 2 completion is targeted for Q1 2027; Masar Gardens compensation payment is also targeted for Q1 2027.