ALEC Holdings, a market-leading diversified engineering and construction group, delivered a record set of results in FY 2025, with revenue rising 56% YoY to AED12.6 billion ($3.43 billion), underpinned by strong conversion of the order book and disciplined execution across the group’s diversified platform. 

Momentum remained solid into Q4 2025, with revenue increasing 36% YoY to AED3.7 billion, reflecting continued project ramp-up and sustained delivery across the UAE and Saudi Arabia.

Profitability experienced robust growth, with FY 2025 gross profit rising 58% YoY to AED1.3 billion, with gross margin edging slightly higher to 10.5%. 

ALEC’s first full-year results announced since its listing on DFM in October 2025 reflect continued execution against a high-quality backlog, disciplined project selection, and operating leverage across the business. This reflects a combination of improved delivery performance and scale benefits in the core segments, offset in part by normalised margins in Related Businesses as volumes scaled and project mix evolved, ALEC said. 

Q4 2025 gross margin expanded significantly to 12.5%, up from 10.5% in Q4 2024, reflecting stronger performance and a higher contribution from value-added activities during the period.

FY 2025 EBITDA increased 76% YoY to AED1.1 billion, and EBITDA margin expanded to 8.8%, from 7.8% in the previous period, driven by operating leverage and disciplined cost control. Revenue growth outpaced the expansion in overheads as the company continued investing in its execution capacity. In Q4 2025, EBITDA increased 65% YoY to AED400 million, with EBITDA margin expanding to 10.8% from 8.9% in Q4 2024, supported by strong revenue growth and a step-up in gross margin.

FY 2025 net profit increased by 89% YoY to AED687 million ($187.07 million), equating to a net profit margin of 5.5%, supported by higher operating earnings and a meaningful reduction in net finance costs, partly offset by higher tax expense following the introduction of new global minimum tax rules in certain jurisdictions, per the OECD Pillar II Framework. In Q4 2025, net profit increased 57% YoY to AED 256 million, with net profit margin improving to 6.9% from 6.0% in Q4 2024.

Segmental Overview

Building & Construction revenue increased 68% YoY to AED6.8 billion, remaining the largest contributor as several large-scale projects progressed through peak execution phases.

Energy Services revenue grew 64% YoY to AED4.6 billion, reflecting continued traction in major infrastructure awards and deepening capability in strategic energy-related delivery.

Related Businesses revenue increased 53% YoY to AED3.0 billion, supported by higher attach rates across the Group’s project portfolio and continued demand for integrated specialist offerings. In Q4 2025 specifically, Related Businesses' growth accelerated, up 69% YoY, contributing to a more favourable quarterly mix.

Cash dividend

The Board of Directors approved a cash dividend distribution of AED250 million, payable in April 2026 - up from the previously announced AED200 million – reflecting strong results and the Company’s commitment to rewarding shareholders.

Barry Lewis, Chief Executive Officer of ALEC Holdings, said: “2025 was a monumental year for ALEC. Alongside record performance, we became a listed company, a milestone that reflects the trust the investment community has placed in ALEC, the UAE and the wider region’s construction sector.

"We delivered strong execution across complex projects, with growing contribution from our specialist capabilities and continued momentum across the UAE and Saudi Arabia.

"What differentiates ALEC is our ability to bring together scale, engineering depth and end-to-end delivery. Clients choose us for certainty of outcomes, from construction and fit-out through to energy, industrial and specialist services. This integrated model is increasingly valued as projects become more complex and schedule-critical.

" Looking ahead, we see a healthy pipeline of mega and nationally significant opportunities moving into execution, particularly in energy infrastructure and data centres. Our priorities remain clear: stay selective, focus on high-value work where we have a clear competitive advantage, drive delivery excellence through our people and processes, and scale responsibly while maintaining a strong safety culture and disciplined risk management. With these foundations, we are confident in delivering sustainable, long-term value for shareholders.” 

John Deeb, Chief Financial Officer of ALEC Holdings, said: “Over the past year, we demonstrated how scale, selectivity and disciplined execution translate into stronger profitability and cash generation. As the business grew, we delivered meaningful operating leverage and improved returns, reflecting tighter project control, a more favourable mix, and continued focus on cost optimisation.

"As we enter 2026, our capital allocation priorities are straightforward: support backlog execution and strategic growth areas, keep the balance sheet strong, and remain aligned with our dividend policy. We are well-positioned to capture opportunities in our pipeline without compromising financial prudence.” - TradeArabia News Service