Dar Al Arkan nine-month profit climbs 12% to 789 million riyals

Summary

• Dar Al Arkan posted 788.99 million riyals in nine-month net profit, up 12.14% year-on-year.
• Revenue rose 23.8% to 3.47 billion riyals, driven mainly by higher property sales.
• Third-quarter profit jumped 21.5% sequentially, signalling momentum despite a quarterly revenue dip.

The latest

Dar Al Arkan Real Estate Development reported net profit attributable to shareholders of 788.99 million riyals for the nine months ended 30 September 2026, a 12.14% increase on the 703.57 million riyals recorded a year earlier. Revenue over the same period reached 3,468.89 million riyals against 2,801.39 million riyals. The developer filed the preliminary results through the Saudi Exchange on 4 November 2026.

Details

• The revenue line: Nine-month revenue climbed 23.827% to 3,468.89 million riyals from 2,801.39 million riyals in the comparable period of 2025. That expansion outpaced the growth in both gross and net profit, pointing to a faster rise in cost of sales than in top-line revenue over the period.
• Profit layers: Gross profit reached 1,595.19 million riyals against 1,415.42 million riyals, a 12.7% rise, while operating profit advanced 16.94% to 1,442.7 million riyals from 1,233.7 million riyals. Operating profit therefore grew faster than gross profit, consistent with the company's reference to lower operating expenses.
• The company's explanation: Dar Al Arkan said in its disclosure that the increase in revenue and net profit against the year-earlier period was driven principally by higher real estate sales, alongside stronger gains from investments in associate companies and reductions in both operating expenses and financing costs.
• Third quarter alone: Quarterly revenue reached 1,125.62 million riyals, up 10.653% from 1,017.25 million riyals in the same quarter of 2025 but down 4.606% from 1,179.98 million riyals in the preceding quarter. Net profit for the quarter came in at 290.02 million riyals.
• Sequential momentum: Third-quarter net profit rose 13.466% against the year-earlier quarter and 21.479% against the second quarter's 238.74 million riyals. Profit thus advanced sharply quarter-on-quarter even as revenue slipped, indicating the improvement came from margins and non-operating items rather than sales volume.
• The flat line: Total comprehensive income edged down 0.198% to 747.76 million riyals from 749.25 million riyals, the only headline measure to decline. The result sits below the reported net profit figure, in contrast to the double-digit gains registered across revenue, operating profit and bottom-line earnings.
• Balance sheet: Total equity stood at 22,975.34 million riyals against 21,843.86 million riyals a year earlier, a 5.179% increase. Earnings per share rose to 0.73 riyals from 0.65 riyals in the comparable period, tracking the growth in attributable net profit.
• Auditor's position: The company said the auditor's opinion on the financial statements is unmodified, meaning a clean opinion carrying no qualifications or reservations. The figures were filed as preliminary results, and the disclosure did not set a date for the publication of the full audited statements.

Between the lines

The gap between 23.8% revenue growth and 12.1% net profit growth means expansion is costing more than it returns at the bottom line. The company's own attribution of gains to associate-company investments, lower operating expenses and reduced financing costs suggests part of the improvement sits outside core property sales, even as those sales drove the revenue jump.

What's next

Watch the full-year results and the audited statements for whether the third quarter's 4.6% sequential revenue decline extends into the fourth quarter, and whether comprehensive income recovers from its flat nine-month reading.

Source: Saudi Exchange (Tadawul)