Ladun Investment Company (9535.SR) Q2 2025 Earnings Report

Ladun Investment Company delivered a robust Q2 2025 with revenue of SAR 639,412,544 and a gross profit of SAR 129,614,786, yielding a gross margin of 20.27%. EBITDA stood at SAR 78,465,942 and operating income reached SAR 61,645,568, producing an operating margin of 9.64%. Net income came in at SAR 21,321,066 and earnings per share (EPS) SAR 0.0426, translating to a year-over-year (YoY) net income growth of 31.49% and a YoY revenue surge of 97.73%. The quarter exhibits meaningful top-line momentum and early signs of operating leverage within its development activities, underpinned by milestone-driven project execution and a disciplined cost structure.

However, liquidity and balance sheet dynamics warrant careful monitoring. Liquidity ratios are tight: current ratio 0.772, quick ratio 0.545, and cash ratio 0.0241 indicate limited near-term liquidity against working capital needs. Days sales outstanding (DSO) are elevated at 110.21 days and the cash conversion cycle extends to 142.65 days, highlighting tight cash conversion in a capital-intensive business model. Leverage remains meaningful, with total debt to capitalization at 60.9% and a debt-to-equity ratio of 1.555, even as operating cash flow per share SAR 0.403 and free cash flow per share SAR 0.394 underscore recurring cash generation capabilities. Relative valuation remains elevated, with price-to-book around 2.75 and price-to-earnings near 21.11, suggesting investors are pricing in growth and project execution potential, while also recognizing execution and financing risks amid market cyclicality.

On a competitive basis, Ladun’s margin profile compares competitively with peers in certain metrics (gross margin around 20.3% vs peer range broadly from ~13.5% to ~48% depending on asset mix and project stage). The company’s quarter-to-quarter momentum and longer-term pipeline remain the principal drivers of potential upside. The absence of a disclosed earnings call transcript prevents direct incorporation of management commentary into this summary; investors should watch for guidance on project backlog, capex allocation, and refinancing plans as the remaining 2025 calendar unfolds.