14/08/2026 02:54 AST
UAE-based engineering and construction group ALEC Holdings has recorded a 67.6% jump in its revenue for the first-half which rose to AED8.99 billion ($2.45 billion) from AED5.36 billion a year earlier, helped by higher activity across its major projects.
Announcing the results for the six-month period ended June 30, 2026, ALEC said its net profit fell 11% to AED213.8 million, with the net profit margin declining to 2.4% from 4.5% mainly hit by disruptions to its energy services business amid regional geopolitical tensions..
The earnings before interest, tax, depreciation and amortisation (ebitda) rose 2.7% to AED440.4 million, while the ebitda margin fell to 4.9% from 8.0% a year earlier.
On the second-quarter results, the Emiarti group said it revenue rose 51.3% to AED4.38 billion, but ebitda fell 65% to AED79 million and the company reported a net loss of AED17 million, compared with a net profit of AED 36 million in the same period last year.
ALEC said its Energy Services business was affected by extended stoppages to offshore work during a period of regional conflict, reducing revenue while the group continued to incur costs for idle employees.
"We actively managed these pressures through disciplined cost control and project and workforce planning, while maintaining execution momentum across the wider portfolio,"
ALEC's order backlog stood at AED 32.5 billion at the end of June, equivalent to about two years of revenue based on its latest 12-month sales.
The group said it had secured new projects during the period, including its appointment to deliver Sphere Abu Dhabi and three engineering, procurement and construction (EPC) contracts on Das Island for its Energy Services subsidiary TARGET. The contracts have a combined value of more than AED 1.8 billion.
On the results, CEO Barry Lewis said: "H1 was a period of strong growth, with revenue increasing 67.6% year-on-year to AED9 billion, reflecting the scale of activity and strength of delivery across our portfolio. We also secured significant new work, including our appointment to deliver Sphere Abu Dhabi and three EPC awards on Das Island for our Energy Services subsidiary, TARGET, with a combined value exceeding AED1.8 billion."
"At the height of the regional conflict, extended stoppages to offshore work temporarily curtailed activity within our Energy Services business, limiting its potential revenue contribution while the Group continued to carry the cost of idled manpower. We actively managed these pressures through disciplined cost control and project and workforce planning, while maintaining execution momentum across the wider portfolio," he noted.
The demand backdrop across the UAE and Saudi Arabia remains constructive, supported by continued investment in large-scale urban development, aviation, energy, hospitality and digital infrastructure.
"Our AED32.5 billion backlog provides strong visibility over future activity, and we continue to deploy our capacity selectively, prioritising complex, large-scale projects that align with our capabilities and where our integrated platform delivers the greatest value to clients," he added.
The company said demand in the UAE and Saudi Arabia remained positive, supported by investment in urban development, aviation, energy, hospitality and digital infrastructure.
Building and Construction revenue more than doubled to AED 5.8 billion in the first half, up 105.6% year-on-year, driven by the execution of projects including the Stargate Data Centre, Wynn Al Marjan Resort and the ilmi Science and Discovery Center.
During H1, ALEC generated AED694.6 million in net cash from operating activities, while free cash flow to the firm rose 49.8% to AED 544.8 million.
Chief Financial Officer, John Deeb said: "The first half of 2026 demonstrated the scale and resilience of our operating model, with revenue increasing 67.6% year-on-year to AED 9.0 billion. EBITDA increased 2.7% to AED 440.4 million, while net profit reached AED213.8 million, with Q2 profitability impacted by operational disruptions in Energy Services related to regional geopolitical developments and the associated absorption of fixed costs, partially mitigated by disciplined cost management."
"Cash generation remains a key strength, with net cash from operating activities of AED 694.6 million and Free Cash Flow to Firm increasing 49.8% year-on-year to AED 544.8 million. Capital expenditure remained below 2% of revenue, demonstrating our commitment to our capex-light model and preserving the financial flexibility to execute our capital allocation priorities," stated Deeb.
"We ended June with AED 2.4 billion in cash and a net cash position of AED 1.0 billion. Together with our AED 32.5 billion backlog, our strong financial position provides the visibility and capacity to deliver against our revised 2026 guidance. In that regard, we are pleased to announce AED100 million interim dividend for our H1 2026 results, payable in October 2026," he added.
The company ended June with AED 2.4 billion in cash and a net cash position of AED1 billion. It would be paying an interim dividend of AED100 million for the first half in October.
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