Earnings shine amid a strong backlog conversion and new project wins
ALEC Holdings, the market-leading diversified engineering and construction group, with operations focused on large-scale, complex and iconic buildings and energy projects in the UAE and the KSA, announced recently its financial results for the three-month and six-month periods ended 30 June 2026 in a press notification.
ALEC delivered strong topline growth, with revenue increasing 67.6% Year-on-Year (YoY) to nearly AED 9.0bn in H1-2026 and 51.3% YoY to AED 4.4bn in Q2-2026, supported by sustained project execution and a closing backlog of AED 32.5bn.
“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 AED 32.5bn backlog provides strong visibility over future activity, and we continue to deploy our capacity selectively, prioritizing complex, large-scale projects that align with our capabilities and where our integrated platform delivers the greatest value to clients,” explained Barry Lewis, Chief Executive Officer.
“We ended June with AED 2.4bn in cash and a net cash position of AED 1.0bn. Together with our AED 32.5bn 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 AED 100mn interim dividend for our H1-2026 results, payable in October 2026,” stated John Deeb, Chief Financial Officer.
Financial Overview
Revenue
ALEC recorded strong topline growth in H1 2026, with revenue reaching AED 9.0bn, up 67.6% YoY, reflecting the ramp-up of major projects and increased activity across all operating segments.
Segmental Overview
Building & Construction revenue more than doubled to AED 5.8bn in H1-2026, increasing 105.6% YoY and remaining the Group’s largest revenue contributor. Growth was supported by the accelerated execution of major projects including Stargate Data Centre, Wynn Al Marjan Resort and the ilmi Science and Discovery Center.
Energy Services revenue increased 36.9% YoY to AED 2.8bn in H1-2026, as work advanced across client-related EPC contracts and the wider energy infrastructure portfolio. The segment recorded a gross loss of AED 157.5mn, yielding a negative gross margin of 5.7%, compared to a positive margin of 9.4% in H1 2025.
Q2-2026 revenue increased by 8.9% YoY to AED 1.3bn, while the segment recorded a gross loss of AED 201.5mn and a negative gross margin of 16.1%, largely reflecting the recognition of fixed costs against disruptions related to regional geopolitical developments.
Profitability
Gross profit declined 4.4% YoY to AED 513.1mn in H1-2026, as higher contract costs from Energy Services more than offset strong revenue growth, resulting in a 430-basis point decline in gross profit margin to 5.7%.
