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 growth across all segments and disciplined execution.

• Mall operations delivered a 15% profit increase, reaching SAR 474 million, the highest in company history, with enhanced tenant mix and optimization initiatives boosting footfall and rental income.

• Hospitality segment maintained stable occupancy at 83%, with ADR up 10% to SAR 913 and RevPAR up 10% to SAR 775, despite ongoing renovations.

• Acquired Ajyad land for mixed-use development, including a 2,000-key hotel and 16,000 sq m mall, supporting long-term integrated expansion in Makkah.

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

Financial highlights

• Total revenue grew 28% year-over-year to SAR 1.072 billion; gross profit increased 9% to SAR 515 million; EBITDA rose 14% to SAR 531 million.

• Net income reached SAR 474 million, up 15% year-over-year; EPS at SAR 2.37.

• Operating cash flow was SAR 413 million (+24%), free cash flow SAR 318 million (+10%).

• Capex more than doubled to SAR 95 million, supporting renovations and mall expansion.

• SAR 793 million realized from partial sale of Jabal Omar shares; SAR 295 million returned as dividends.

Outlook and guidance

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

• Hospitality RevPAR expected to follow seasonal trends with incremental growth; renovation to be executed during low season.

• Mall leased area projected to reach 17,650 sq m, with average lease rate rising to SAR 17,700 per sq m.

• Hajj segment targets 65,000 pilgrims with margin improvement to 5%-6%.

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