Earnings Fall 33% in H1, but Q2 Sees a Rebound from Early-Year Slump
Riyadh Development Company has reported SAR 107.7 million ($28.7 million) in profits for the first half of 2025—a sharp 33.7% drop from the same period last year. While the year-on-year figures paint a somber picture, the second quarter tells a more optimistic story, showing a 56% jump in profits compared to the first three months of the year.
It’s a tale of two quarters, where a sluggish Q1 gave way to a Q2 rebound, even as annual comparisons remain in the red.
Weaker H1, Softer Revenues, and EPS Under Pressure
The company’s financials for the first half of 2025 show a decline across the board. Net profits slid to SAR 107.7 million, down from SAR 162.4 million in H1 2024. Revenues also softened, falling 8.38% year-on-year to SAR 142.43 million.
Earnings per share also took a hit. Riyadh Development posted EPS of SAR 0.49 for the six-month period ending June 30, compared to SAR 0.91 a year earlier. That’s nearly halved in 12 months.
It’s not just one bad quarter weighing things down. The softness stretched across both Q1 and Q2.
A Bump in Q2—But Not Enough to Reverse the Slide
Q2-25 brought some much-needed relief. The company pulled in SAR 65.63 million in net profits for the three months ending June 30. That figure, while still down 28.6% from the SAR 91.92 million reported in Q2-24, represents a solid bounce from Q1’s dismal SAR 42.07 million.
That’s a 56% quarter-on-quarter profit jump.
Revenues in Q2 also edged up to SAR 72.89 million, a 4.8% increase from Q1-25. Still, compared to the same quarter last year, revenues were down by 5.38%.
Here’s how the key financials stack up:
| Period | Revenue (SAR mn) | Net Profit (SAR mn) | EPS (SAR) |
|---|---|---|---|
| H1 2024 | 155.47 | 162.40 | 0.91 |
| H1 2025 | 142.43 | 107.70 | 0.49 |
| Q1 2025 | 69.54 | 42.07 | — |
| Q2 2025 | 72.89 | 65.63 | — |
So yes, there’s progress. But it’s still uphill from here.
Looking Back at 2024: A Strong Year to Beat
For perspective, Riyadh Development had wrapped up 2024 on a high. The company clocked a 9.1% rise in net profit for the full year, hitting SAR 296.2 million. That performance set a high bar—and some of the current year-on-year declines are in part a reflection of those peak results.
Still, investors may find it hard to overlook the size of this year’s dip, particularly in profitability.
One Riyadh-based analyst said the company’s year-to-date numbers are “not alarming, but definitely a signal that growth is slowing.”
Market Reaction and What’s Next
The company hasn’t disclosed any forward guidance, but its quarterly recovery hints at possible stabilization in the second half.
Some factors to watch going forward:
-
Commercial real estate trends in Riyadh, a key sector for Riyadh Development
-
New infrastructure projects under Vision 2030 that could feed future earnings
-
Inflation and cost pressures across the construction and development chain
The big question for shareholders? Whether Q2’s bounce is the start of a new trend—or just a blip.
