Makkah Construction and Development (4100) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 7% year-over-year to SAR 251 million, with net profit up 8% to SAR 162 million, driven by strong mall and hotel performance, higher lease rates, and operational efficiency.

• Completed Ajyad land acquisition for SAR 980 million, supporting long-term expansion and future mixed-use development.

• Launched SAR 400 million phased renovation program for Hotel & Towers to enhance asset quality and guest experience.

• Retail/mall segment led growth, with revenues up 20% year-over-year to SAR 79 million and gross profit up 26% to SAR 65 million.

• Hospitality segment maintained strong results despite geopolitical challenges, with RevPAR up 5% to SAR 1,157 and ongoing asset enhancement plans.

Financial highlights

• Revenue increased to SAR 251 million in Q1 2026 from SAR 236 million in Q1 2025, mainly due to higher commercial mall and hotel revenues.

• Net profit rose to SAR 162 million from SAR 150 million year-over-year; EPS increased to SAR 0.81 from SAR 0.75.

• Gross profit grew 10% to SAR 187 million; EBITDA up 7% to SAR 174 million.

• Operating cash flow up 29% to SAR 127 million; free cash flow declined to negative SAR 852 million due to land acquisition.

• Total assets increased to SAR 5.58 billion; shareholders’ equity rose to SAR 4.09 billion.

Outlook and guidance

• Maintains previous guidance for 2026; expects RevPAR growth in Hotel & Towers in line with recent trends.

• MCDC Mall guidance stable: available area ~17,700 sqm, average lease rate ~SAR 17,700/sqm.

• MCDC Hajj capacity expected at 60,000–70,000 pilgrims with 5%-6% gross margin.

• Hotel & Towers renovation phased through 2028, aiming to improve asset quality and positioning.

• Revenue expected to be seasonal, with higher performance during Hajj, Umrah, and summer vacation periods.