Makkah Construction and Development (4100) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of SAR 1.072 billion, up 28% year-over-year, and net income of SAR 474 million, up 15%, driven by strong core asset performance and operational improvements.

• Hotel revenue and profitability grew despite ongoing renovations, with a key phase completed ahead of Ramadan to capture peak demand.

• Enhanced tenant mix and mall optimization, including new dining areas and expanded leasable space, contributed to increased footfall and rental income.

• Acquired Ajyad land to support long-term integrated hospitality and retail expansion in Makkah.

• Board approved/recommended a SAR 1.5 per share dividend for FY2025, reflecting strong financial position and commitment to shareholder returns.

Financial highlights

• Revenue rose 28% year-over-year to SAR 1.072 billion; net income up 15% to SAR 474 million; EPS increased to SAR 2.37.

• Gross profit increased 9% to SAR 515 million; EBITDA reached SAR 531 million, up 14% year-over-year.

• Free cash flow grew 10% to SAR 318 million; operating cash flow up 24% to SAR 413 million.

• Capex more than doubled to SAR 95 million, up 110% year-over-year.

• Gearing ratio improved by 3.4 percentage points to 0.4%; recalculated to 2.05% from -2.9%.

Outlook and guidance

• Hotel renovation program to reduce available rooms in low season from June 2026 to January 2027; further details in Q1 2026.

• Mall leasable area projected at ~17,650 m² with average lease rate ~SAR 17,700/m².

• Hajj segment expects capacity of 60,000–70,000 pilgrims with gross margin of 5–6%.

• Hotel renovations and mall expansion expected to drive future revenue and profitability.

• Confident in continued long-term value creation due to a clear strategy, strong balance sheet, and high-quality assets.