Binghatti nine-month net profit hits $1.2bn, topping full-year 2025

Binghatti Holding reported record results for the first nine months of 2026 on Thursday, with net profit rising 65% year on year to AED4.4 billion ($1.2 billion). The nine-month profit is AED800 million above the AED3.6 billion the developer earned in the whole of 2025, putting the first three quarters ahead of a full prior year.

Revenue climbed 66% to AED14.9 billion ($4.1 billion). Binghatti attributed the increase to construction progress across its portfolio. Revenue growth outpaced sales growth, reflecting the construction progress Binghatti cited. Sales rose 11% to AED14.2 billion ($3.9 billion).

Chairman Muhammad BinGhatti tied the result to a delivery model that keeps design, contracting and delivery inside the company. He said Binghatti builds what it sells and manages its own construction schedule rather than a third party's. That internal control, he said, allowed the company to surpass the prior year's full-year profit within nine months.

Binghatti completed five projects on schedule in the period: Binghatti Apex, Binghatti Ghost, Binghatti Ivory, Binghatti Haven and Binghatti Grove. The five handed over about 2,600 units. Eight further projects, comprising about 6,400 units, are on track for completion by the end of 2026. Muhammad BinGhatti said delivered product is the clearest measure of the company.

Total equity rose to AED11.2 billion from AED6.8 billion at the end of 2025. Total assets grew 46% year to date to AED35.5 billion. Bank balances reached AED12.4 billion, up 40% year to date, and AED10.9 billion of that was classified as cash and cash equivalents, compared with AED3.4 billion in December 2025. Cash and bank balances including escrow exceeded total borrowings of AED12.2 billion.

Corporate cash stood at AED2.7 billion, about five times the level at the start of the year and about seven times on a sequential basis. Binghatti issued a $500 million sukuk in February 2026, which it said further diversified its funding. The company plans to repay the sukuk in full at maturity in February 2027 from internally generated cash. Corporate cash at September 30 was about 1.5 times the amount due.

Gross debt to equity was 1.1x, and EBITDA covered net finance costs 7.4 times. Binghatti said it remained in compliance with all financial covenants. Chief financial officer Shehzad Janab said the results showed strong growth in tangible net worth and that debt had increased at a measured and manageable pace. He pointed to a focus on strengthening the capital base, balance-sheet resilience and disciplined financial and capital-structure management.

The company generated AED5.4 billion of operating cash before working capital and reinvested AED4.9 billion into land acquisition and construction. Net operating cash flow was close to break-even at AED0.1 billion. Binghatti expects collections on completed projects to accelerate cash conversion.

Contracted revenue stood at AED16.4 billion, expected to be recognised over the next one to three years. Customers owed a further AED4.7 billion, largely collectible on handover. Chief executive and managing director Katralnada BinGhatti said the development backlog was AED33 billion and that the company entered 2027 with clear visibility on the years ahead. He also cited the 11% sales growth and said demand for well-located homes at the right price remained strong.

Total sellable square footage grew from 2.4 million sq ft to 14.6 million sq ft between December 2025 and September 2026. Binghatti said the increase secured its future development pipeline.

The developer described Dubai's residential market as supported by population growth, long-term residency trends, economic diversification and supportive government initiatives. Demand is increasingly driven by residents and end users, it said, and the right product, price point and location should continue to see strong absorption.

Two metro lines are scheduled to open in the coming years: the Dubai Metro Blue Line in 2029 and the Gold Line in 2032. The two lines will serve areas that contain about 55% of Binghatti's completed and under-development units, including Jumeirah Village Circle, Business Bay, Nad Al Sheba and Dubai Silicon Oasis. The expansion of Al Maktoum International Airport and planned Etihad Rail passenger services, including a high-speed Dubai-Abu Dhabi link, are expected to strengthen connectivity.

Binghatti said its pipeline, execution capabilities and strategic land bank positioned it to take advantage of market opportunities. It also cited a continued focus on disciplined capital allocation, balance-sheet management and sustainable growth.

The balance sheet now carries both a large development pipeline and a large receivable book. Profit is being recognised as construction advances, while cash sits in land, construction and handover-stage receivables. How quickly the 2,600 units delivered this year and the 6,400 units due by December convert into collections will determine whether near-break-even operating cash flow improves alongside reported earnings.