Ladun Investment Company (9535.SR) Q4 2024 Earnings Report

Ladun Investment Company reported a compelling revenue surge in QQ4 2024, with revenue of SAR 858.5 million, up 119.0% year-over-year and 165.5% quarter-over-quarter, supported by a notable escalation in activity within its real estate development portfolio. Despite a robust top line, gross margin compressed to 15.6% and operating margin to 6.2%, resulting in a net margin of 3.4% and net income of SAR 29.3 million. Earnings per share stood at SAR 0.0586, reflecting improved profitability on a per-share basis but a moderate margin profile given the scale of revenue growth. Free cash flow remained negative at SAR -7.5 million for QQ4 2024, driven by capital expenditure and working capital dynamics, while cash from operations was modest at SAR 2.1 million. The company ended QQ4 with SAR 103.3 million of cash and cash equivalents and a total debt load of SAR 1.20 billion, yielding a net debt position of SAR 1.10 billion and a debt-to-equity ratio of 1.89, underscoring leverage risk in a capital-intensive development cycle. Equity stood at SAR 634.9 million, producing a return on equity of approximately 4.6% for the quarter, and a return on assets of about 0.97%. The quarter’s results imply meaningful scale-up in activity, but margins and free cash flow remain areas to monitor as project execution and capital deployment unfold.