ALEC Holdings (ALEC) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached AED 9.0 billion, up 68% YoY, driven by major project ramp-up and strong execution, including The Sphere Abu Dhabi and EPC contracts on Das Island.

• Net profit for H1 2026 was AED 214 million (2.4% margin), down 11% YoY, with Q2 net loss due to regional conflict-driven cost increases and supply chain disruptions.

• Backlog reached AED 32.5 billion, providing 2.0x trailing revenue coverage and multi-year visibility.

• Interim dividend of AED 100 million declared for H1 2026, payable in October 2026.

• All awarded projects are being delivered on schedule, with no cancellations in the project pipeline.

Financial highlights

• H1 2026 revenue: AED 8,990 million (+68% YoY); Q2 2026 revenue: AED 4,380 million (+51% YoY, -5% QoQ).

• H1 2026 EBITDA: AED 440 million (+3% YoY); margin 4.9% (down 309 bps YoY).

• H1 2026 net income: AED 214 million (-11% YoY); margin 2.4% (down 208 bps YoY).

• Free cash flow to firm: AED 545 million; capex: AED 171 million (1.9% of revenue).

• Cash and cash equivalents at period end were AED 2,350 million, up from AED 1,163 million year-over-year.

Outlook and guidance

• FY 2026 revenue growth expected at 45–50%, with medium-term CAGR of 7–8%.

• Gross profit margin guided at 6–9% for 2026, improving to 10–11% medium-term.

• EBITDA margin expected at 5–8% for 2026, rising to 8–10% medium-term.

• Capex to remain 2–3% of revenue, declining to 1% over time.

• 31% of AED 32.5 billion backlog to be recognized as revenue in remainder of 2026; rest from 2027–2030.