ALEC Holdings reported strong revenue growth in the first half of 2026, with revenue increasing 67.6% year-on-year to nearly AED 9.0 billion, supported by sustained project execution across the UAE and Saudi Arabia and the ramp-up of major projects.
EBITDA increased 2.7% year-on-year to AED 440.4 million, while net profit declined 10.5% to AED 213.8 million. The company said profitability was impacted by operational disruptions in its Energy Services business related to regional geopolitical developments and the associated absorption of fixed costs.
Building & Construction remained ALEC’s largest revenue contributor, with H1 revenue more than doubling to AED 5.8 billion, up 105.6% year-on-year. Growth was supported by accelerated execution across major projects including Stargate Data Centre, Wynn Al Marjan Resort and the ilmi Science and Discovery Center. Energy Services revenue increased 36.9% to AED 2.8 billion, while Related Businesses revenue rose 123.7% to AED 2.6 billion.
ALEC ended the first half with a backlog of AED 32.5 billion, providing 2.0x coverage of trailing 12-month revenue. Major new project wins included the approximately AED 6.4 billion Sphere Abu Dhabi contract and three EPC awards worth more than AED 1.8 billion on ADNOC’s Das Island through its subsidiary Target Engineering Construction Company.
Cash generation also strengthened, with net cash from operating activities increasing 7.6% year-on-year to AED 694.6 million. Free Cash Flow to Firm rose 49.8% to AED 544.8 million, while cash and bank balances reached AED 2.4 billion. ALEC ended June with a net cash position of AED 1.0 billion.
Looking ahead, ALEC expects FY 2026 revenue growth of approximately 45%–50%, with a gross profit margin of around 6%–9% and an EBITDA margin of approximately 5%–8%. The company’s backlog provides 100% coverage of its expected FY 2026 revenue, while its medium-term outlook remains largely unchanged.
In line with its dividend policy, ALEC’s Board approved an interim cash dividend of AED 100 million for H1 2026, payable in October 2026.
Source: ALEC Holdings
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