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Earnings Report

ALEC Holdings

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

ALEC Holdings PJSC, a diversified engineering and construction group operating across the UAE and KSA, reported its Q1 2026 results, delivering a strong start to the year with sharp growth in revenue and profitability, driven by backlog execution and project momentum.

2. Financial Performance Snapshot

  • Revenue: AED 4.61B (+87% YoY)

  • EBITDA: AED 362M (+79% YoY)

  • EBITDA margin: 7.9%

  • Net profit: AED 230M (+101% YoY)

  • Net profit margin: 5.0%

3. Operational Highlights & Key Metrics

  • Backlog: AED 26.7B (strong revenue visibility)

  • Backlog coverage: 1.8x

  • Segment performance:

    • Building & Construction: AED 2.9B (+116% YoY)

    • Energy: AED 1.5B (+74% YoY)

    • Related businesses: AED 1.3B (+155% YoY)

  • Balance sheet & cash position:

    • Total assets: AED 11.5B

    • Total liabilities: AED 10.1B

    • Cash & bank balances: AED 1.0B

    • Net cash position: AED 122M (low leverage)

    • Net working capital: AED 811M

  • Cash flow:

    • Free cash flow to firm: AED -495M (seasonal working capital outflows)

4. Key Performance Drivers

  • Strong backlog conversion, driving significant revenue growth

  • Execution across large-scale projects, particularly in UAE and KSA

  • Integrated delivery model, supporting scalability and margins

  • Growth across core segments, including construction and energy services

  • Disciplined cost management, improving operating leverage

5. Outlook & Forward Guidance

  • FY 2026 revenue growth expected: 50%–55%

  • Medium-term growth: ~7%–8% CAGR

  • Margins expected to improve gradually, with EBITDA ~8.5% target

  • Backlog expected to remain strong (~2.0x–2.5x revenue)

  • Continued focus on:

    • Selective high-quality project execution

    • Maintaining strong pipeline and backlog visibility

    • Efficient capital allocation and working capital management

6. ???? Investor Takeaway

ALEC delivered a strong Q1 2026 with sharp growth in revenue and profits, supported by robust backlog execution, diversified project mix, and disciplined operations, positioning it for continued growth in the regional construction and infrastructure sector.