Strong set of results post listing demonstrates the resilience
of ALEC's integrated platform. |
Record revenue up 66% YoY to AED 8.9 billion in 9M 2025, reflecting strong backlog conversion and disciplined execution. |
EBITDA up 83% YoY to AED 706 million in 9M 2025, with margin reaching 7.9%.
|
Robust, sizeable backlog of AED 32.9 billion as of 30 September 2025, providing multi-year revenue visibility. |
Momentum building in high-growth strategic sectors, including energy and data centres. |
Dubai, United Arab Emirates –November 2025 – ALEC Holdings PJSC (“ALEC” or the“Company”), the market-leading diversified engineering and construction group with operations focused on large-scale, complex and iconic buildings and energy projects in the UAE and the KSA, announced today its financial results for the third quarter (“Q3”) and nine months (“9M”) ended 30 September 2025. Following a high-profile listing on DFM, ALEC's results reflect continued execution against a high-quality backlog, disciplined project selection, and operating leverage across the business.
Key Highlights:
|
Revenue |
EBITDA[1] |
EBITDA Margin[2] |
Net Income |
Net Income Margin[3] |
| 9M 2025 |
AED 8,906 million
+66% YoY |
AED 706 million
+83% YoY |
7.9%
(7.2% 9M 2024) |
AED 432 million
+116% YoY |
4.8%
(3.7% 9M 2024) |
| Q3 2025 |
AED 3,544 million
+82% YoY |
AED 277 million
+88% YoY |
7.8%
(7.6% Q3 2024) |
AED 193 million
(+172%) |
5.4%
(3.6% Q3 2024) |
As at 30 September 2025
| Backlog |
Backlog Coverage[4] |
Free Cash Flow to Firm[5] |
Net Cash / EBITDA[6] |
| AED 32.9 billion |
2.8x |
AED 624 million |
0.5x |
Barry Lewis,
Chief Executive Officer of ALEC Holdings, said: |
“Our sustained strong performance in the first nine months of 2025 reflects the strength of ALEC's integrated platform and the success of our focused strategy. We are executing a high-quality backlog with discipline while expanding in sectors that play to our strengths, including energy infrastructure and data centres and airports.
Looking ahead, we see a healthy pipeline of mega and nationally critical projects moving from design into execution. In particular, there is a durable, muti-year runway for data centre growth in the UAE and Saudi Arabia. Momentum from national AI strategies and recent hyperscale announcements is already translating into contracted demand. With our one-stop delivery model-and the work underway on Phase 1 of Stargate in Abu Dhabi-ALEC is the go-to partner for hyperscale and AI data-centre projects in the region.
As we grow, our priorities remain unchanged. We will pursue high-value, complex projects where we have a clear competitive advantage. We will drive operating excellence at every stage of delivery, enabled by the depth of our talent and proven execution expertise. We will operate with agility and leverage our scale to drive efficiencies and support margin expansion. We will preserve a prudent balance sheet through disciplined capital and cash management, keeping leverage low. Together, these priorities are designed to deliver sustainable value creation for our shareholders over the mid to long term.” |
Financial Overview
Income Statement Analysis
ALEC delivered a sharp acceleration in top-line growth during the first nine months of 2025, with revenue rising 66% YoY to a record AED 8.9 billion for the period, underpinned by the effective conversion of its substantial backlog and disciplined execution across key sectors notably hotels and data centres. The momentum intensified in Q3, where revenue surged 82% YoY to AED 3.5 billion, reflecting strong progress across both the UAE and Saudi Arabia.
Building & Construction segment led the way, contributing nearly 48% of total revenue[7], with 9M revenue increasing 77% YoY to AED 4.8 billion and Q3 revenue more than doubling to nearly AED 2.0 billion.
Energy Solutions segment, representing 32% of revenue7, saw 75% YoY in 9M to AED 3.2 billion, with Q3 revenue up 82% YoY to AED 1.2 billion, as the Group deepened its footprint in major energy infrastructure projects.
Related Businesses – including fitout, MEP, data centre solutions, and modular construction -generated AED 2.0 billion in revenue in 9M, growing 45% YoY, with Q3 revenue up 62% YoY to AED 858 million, signalling continued traction for ALEC's integrated, high-margin offerings.
On profitability, ALEC delivered a 56% YoY increase in gross profit to AED 859 million during the first nine months of 2025. Gross margins remained healthy at 9.6%, with a slight contraction from 10.2% in the prior-year period reflecting a shift in revenue mix-particularly a comparatively lower contribution from the higher-margin Related Businesses segment. In Q3, gross profit rose 65% YoY to AED 323 million, with gross margin at 9.1.
EBITDA rose 83% YoY in 9M to AED 706 million, with EBITDA margin expanding to 7.9%-a result of strong operating leverage, tight cost control, and prudent financial management, even as the Company continues to invest in internal capability-building. In Q3, EBITDA increased 88% to AED 277 million, equating to a 7.8% margin.
Net profit more than doubled, growing 116% YoY to AED 432 million in 9M, with net margin expanding from 3.7% to 4.8%. Q3 alone saw net profit surge 172% YoY to AED 193 million. These gains reflect a combination of robust project delivery, operational efficiencies, and effective working capital and finance cost management.
Balance Sheet Analysis:
ALEC continues to maintain a disciplined and efficient balance sheet, even as the business scales on the back of a growing order book. The significant increase in activity during the first nine months of 2025 led to a notable rise in net working capital, consistent with the Company's expanding projects and execution intensity. The Company ended the period with a stable Net Cash to trailing twelve-month EBITDA ratio of 0.5x, highlighting ALEC's continued commitment to balance sheet strength and financial flexibility as it delivers on a sizeable backlog.
Cash Flow Analysis:
ALEC sustained strong free cash flow generation of AED 624 million during the period, reflecting the underlying strength of its operations and disciplined cash management, even amid elevated investment activity. This performance came despite higher depreciation charges and a significant AED 303 million in capital expenditure, much of which was strategically directed toward enhancing capabilities within the Energy segment to support future growth. The ability to maintain robust free cash flow while investing in scale and operational resilience reaffirms the Group's capacity to meet its dividend policy commitments, with the first post-IPO cash dividend of AED 200 million scheduled for distribution in April 2026.
Key Operational Highlights:
ALEC's backlog remained strong and well-balanced, standing at AED 32.9 billion as of 30 September 2025, providing a 2.8x coverage of trailing twelve-month revenue. With nearly half of that in mega-projects exceeding AED 3 billion, ALEC is well-positioned for multi-year growth. The backlog is almost evenly split between Building & Construction (50.8%) and Energy (47.6%), with 86.5% based in the UAE and 13.5% in Saudi Arabia.
Operationally, ALEC continues to lead with a disciplined approach to safety, quality, and welfare. From January to September 2025, the company achieved a LTIFR
[8] of 0.168, underscoring its commitment to world-class health and safety standards across its sites.
Notably, 52% of new awards in the first nine months of 2025 came through direct awards, reinforcing ALEC's reputation as a trusted delivery partner for complex, high-stakes projects.
Guidance:
Substantial Revenue Growth Forecast: ALEC expects to deliver 50-52% revenue growth in 2025, followed by ~50-55% growth in 2026, driven primarily by already secured projects,
Improving Profitability Outlook (Medium Term):
Gross profit margin is projected in the range of ~10.3% in 2025 and to gradually improve in the medium term by ~100 basis points, supported by a greater share of high-margin, complex projects and growth in the Related Businesses segment.
EBITDA margin is expected in the range of ~8.5% in 2025 and to gradually expand by ~150 basis points, underpinned by operating leverage and continued cost discipline.
Strategic Mix Shift: ALEC's focus on complex, higher-margin segments such as data centres and fitout is expected to drive further margin enhancement and strengthen ALEC's competitive position in a consolidated market.
Reaffirming Commitment to Dividends: As announced during the IPO, ALEC is planning to distribute a cash dividend of AED 200 million in April 2026 and AED 500 million for the financial year 2026, payable in October 2025 and April 2027, and thereafter intends to distribute a minimum of 50% of its net profit for the year, semiannually, subject to Board of Directors' recommendation and shareholders' approval.
Revenue Recognition:
ALEC allocates revenue over time as conditions are met, using the percentage of completion as input method, according to IFRS 15. Of note, project execution is slower during Ramadan and summer
resulting in lower revenue and profits being recognised in those periods.
Net Working Capital:
Given the nature of the sector and ALEC's focus on large projects, resulting in sizeable periodic payments, there might be volatility in working capital depending on the exact timing of such payments and the phase of the project.
About ALEC:
ALEC, part of the Investment Corporation of Dubai, is a leading diversified engineering and construction group operating in the UAE and KSA. The company builds and provides construction solutions that set industry benchmarks for innovation, quality, reliability and operational excellence.
ALEC offers its clients complete turnkey solutions in construction, MEP, fitout, marine, oil & gas, modular construction, energy efficiency and solar projects, heavy equipment rental, technology systems and asset maintenance. With these capabilities, the company successfully serves a diverse range of sectors including airports, retail, hotels & resorts, high-rise buildings, and themed projects.
Disclaimer:
This document may contain statements that are deemed“forward-looking.” These statements are based on current assumptions and expectations, including management's review of historical trends, internal data, and third-party information. Forward-looking statements are inherently subject to risks, uncertainties, and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied. No statement herein should be construed as a profit forecast or guarantee of future performance.
The Company makes no representation or warranty, express or implied, as to the accuracy, completeness, or reliability of the information contained in this document, and accepts no liability for any errors or omissions, to the fullest extent permitted by applicable laws. The information provided does not constitute an offer to sell or a solicitation of an offer to buy any securities under applicable laws. In the event of any discrepancy between this document and the official financial statements, the latter shall prevail. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
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