Makkah Construction and Development (4100) investor relations material

Executive summary

• Revenue for H1 2026 reached SAR 952 million, up 53% year-over-year, driven by strong performance across hospitality, retail, and Hajj segments.

• Net profit increased 14% to SAR 335 million, with significant contributions from hotel, mall, and Hajj businesses.

• Strategic investments advanced, including Ajyad land acquisition, Masar Gardens participation, and ongoing renovations at key assets.

• Operational execution remained disciplined, focusing on long-term value creation and margin improvement.

Financial highlights

• EBITDA rose 12% to SAR 360 million; gross profit grew 21% to SAR 378 million; gross profit margin at 39.7%.

• Earnings per share increased 14% to SAR 1.67.

• Adjusted free cash flow was SAR 298 million, up 81%, excluding SAR 951 million Ajyad land acquisition; reported free cash flow negative due to major CapEx.

• Operating cash flow more than doubled to SAR 360 million.

• Revenue in Q2 2026 was SAR 701 million, up from SAR 388 million in Q2 2025, mainly due to Hajj season timing.

Outlook and guidance

• Renovation works concentrated in low-season quarters to protect revenue; ongoing room closures expected to impact hospitality segment.

• Mall expected to maintain strong lease rates and occupancy, with guidance for average lease rate at SAR 17,700 per sqm and H1 performance ahead at SAR 19,221.

• Hajj segment guided to 5%-6% gross margin and 60,000-70,000 pilgrims for 2026; focus on margin improvement via selective CapEx.

• Major development projects, including Masar Gardens and Ajyad, are expected to enhance long-term growth.

• Q3 expected to be softer for hospitality due to seasonality and rooms out for renovation; mall performance to remain strong.