Makkah Construction and Development (4100) Q4 2025 earnings summary

Executive summary

• Achieved record total revenue of SAR 1.072 billion, up 28% year-over-year, and net income of SAR 474 million, up 15%, driven by strong hospitality, mall, and Hajj segment performance, asset enhancements, and disciplined execution.

• Operational improvements included higher average daily rates, increased leasable area, and successful completion of key hotel renovations ahead of Ramadan.

• Enhanced tenant mix and mall optimization initiatives contributed to increased footfall, rental income, and expansion of leasable space.

• Acquired Ajyad land for a major mixed-use development, supporting long-term integrated hospitality and retail expansion in Makkah.

• Board recommended a cash dividend of SAR 1.5 per share, 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; gross profit reached SAR 517 million.

• EBITDA increased 14% to SAR 531 million; free cash flow up 10% to SAR 318 million; CapEx doubled to SAR 95 million.

• Operating cash flow rose 24% to SAR 413 million.

• Gearing ratio improved to 0.4%; ROE increased to 12.3%; EPS up 15% to SAR 2.37.

• Dividend payout totaled SAR 295 million.

Outlook and guidance

• Ongoing hotel renovations and mall redevelopment expected to impact near-term results but unlock significant future earnings; further details in Q1 2026.

• Hospitality RevPAR and mall lease rates projected to rise further; 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% through mix optimization and cost management.

• Clear path to gross profit of SAR 900 million as new projects come online.

• Board approved SAR 1.5 per share dividend for FY2025.