ALEC’s Q3 and nine-month financial results reveal a surge in revenue and profitability, driven by disciplined project execution and a robust regional pipeline
ALEC Holdings PJSC (ALEC) has reported a powerful set of financial results for the third quarter (Q3) and nine months (9M) to 30 September 2025, marking its strongest performance since listing on the Dubai Financial Market. The construction and engineering group delivered exceptional top-line and bottom-line growth, supported by a high-quality backlog, disciplined project selection, and increasing operating leverage across its diversified portfolio.
Revenues Soar on Back of Robust Backlog Execution
ALEC recorded a sharp acceleration in revenue during the first nine months of 2025, rising 66% year-on-year to a record AED 8.9 billion. Growth was propelled by strong project conversion and continued momentum in core sectors, particularly hotels, energy infrastructure, and data centres.
Growth intensified in Q3, with revenue surging 82% year-on-year to AED 3.5 billion, reflecting significant progress across the UAE and Saudi Arabia.
Building & Construction Leads Growth
The Building & Construction segment remained ALEC’s largest revenue contributor, accounting for nearly 48% of total revenue. Segment revenue rose 77% year-on-year to AED 4.8 billion in the first nine months, while Q3 revenue more than doubled to almost AED 2.0 billion.
Energy Solutions Expands Regional Footprint
The Energy Solutions division, representing 32% of total revenue, delivered AED 3.2 billion in 9M revenue—up 75% year-on-year. Q3 revenues climbed 82% to AED 1.2 billion as ALEC deepened its involvement in large-scale energy infrastructure projects in the region.
Related Businesses Continue High-Margin Momentum
Complementary businesses—including fit-out, MEP, data centre solutions and modular construction—generated AED 2.0 billion in the first nine months, growing 45% year-on-year. Q3 revenue rose 62% to AED 858 million, underscoring continued traction for ALEC’s integrated, higher-margin service offerings.
Profitability Strengthens Despite Revenue Mix Shift
ALEC posted a 56% increase in gross profit to AED 859 million in the first nine months. While gross margin eased slightly to 9.6% from 10.2% due to a lower contribution from higher-margin segments, profitability remained solid. In Q3, gross profit rose 65% year-on-year to AED 323 million, with a 9.1% margin.
EBITDA grew 83% to AED 706 million in the first nine months, with margin expansion to 7.9% driven by strong operating leverage and tight cost control. Q3 EBITDA surged 88% to AED 277 million, representing a 7.8% margin.
Net profit more than doubled, climbing 116% to AED 432 million in the first nine months, lifting net margin from 3.7% to 4.8%. Q3 net profit jumped 172% to AED 193 million, supported by robust operational execution and effective working-capital and finance-cost management.
CEO: “A Durable, Multi-Year Runway for Growth”
Barry Lewis, Chief Executive Officer of ALEC Holdings, said the company’s sustained performance highlights the strength of its integrated delivery model and strategic focus.
“Our 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, data centres and airports.”
Looking ahead, Barry noted that a healthy pipeline of mega and nationally critical projects is moving from design into execution. He emphasised the accelerating demand for data-centre capacity in the UAE and Saudi Arabia, driven by national AI strategies and hyperscale investment.
“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,” he added.
ALEC enters the final quarter of 2025 with strong momentum and a project pipeline that positions the group for sustained multi-year growth.
