Talaat Moustafa Group reported strong financial results for the first quarter of 2026, posting a 24% year-on-year increase in net profit to EGP 5.5bn, reflecting the group’s continued operational momentum across its core business segments.
The group’s revenues rose 39% year-on-year during the first three months of 2026 to reach EGP 13.1bn, supported by robust performance in both the real estate development and hospitality sectors, alongside continued growth in recurring income streams.
Strong Revenue Performance Across Segments
Revenue from the real estate segment climbed 61.6% year-on-year to EGP 6.1bn by the end of March 2026, driven by continued progress in construction activities and unit deliveries across the group’s key projects in Egypt, in addition to revenue recognition from its Saudi Arabia operations based on percentage-of-completion accounting.
Hospitality revenues increased 21% year-on-year to EGP 4.3bn, supported by higher occupancy rates, increased average room rates, and continued operational improvements across the group’s Legacy hotel portfolio.
Meanwhile, other recurring income streams grew 26% year-on-year to EGP 2.7bn, driven by sustained growth in commercial leasing, sports clubs, and integrated community services.
Gross profit surged 37% year-on-year to EGP 4.6bn during the first quarter of 2026, while the gross profit margin stood at 35.4%, compared to 35.9% during the same period last year.
Contracted Sales Reach EGP 49.1bn
The group recorded contracted sales worth EGP 49.1bn during the first quarter of the year, while unrecognized sales backlog increased to EGP 457.9bn as of 31 March 2026, compared to EGP 441.2bn at the end of 2025.
“The Spine” Generates EGP 30bn Sales in 15 Days
TMG’s recently launched “The Spine” project generated approximately EGP 30bn in sales within just 15 days of launch. The project, described as an integrated knowledge city within Madinaty, reflects the group’s strategy to diversify and expand its mixed-use developments.
The group also continued its regional expansion strategy, with its “Banan” project in Saudi Arabia recording sales worth EGP 3.3bn during Q1 2026, while the “Yamal” and “Joud” projects in Oman generated combined sales of approximately EGP 0.9bn.
Delivery of 425 Units
During the first quarter of 2026, the group delivered around 425 units across several flagship developments, including Madinaty, Privado, and Celia.
Cash Position Improves
TMG’s cash and cash equivalents increased to EGP 86.7bn as of 31 March 2026, compared to EGP 73.9bn at the end of 2025, while total debt stood at EGP 14.8bn.
Hospitality Portfolio Continues Growth
The group’s hospitality portfolio continued to deliver strong operational performance, with occupancy rates rising to 63% during Q1 2026, compared to 60% in the same period last year. Average room rates also increased by 15% to reach EGP 13,677.
As part of its hospitality expansion strategy, TMG signed an agreement with Mandarin Oriental Hotel Group to manage the Winter Palace Luxor and Old Cataract Aswan hotels. The group also signed management agreements with Four Seasons Hotels and Resorts and Steigenberger Hotels and Resorts for prominent hospitality assets on Elephantine Island in Aswan.
The company is also progressing with construction works on several hospitality projects, including Four Seasons Luxor, Four Seasons Madinaty, the Marsa Alam resort project, and the mixed-use development adjacent to the Grand Egyptian Museum.
Commenting on the results, Hisham Talaat Moustafa, CEO and Managing Director of TMG, said: “Our first-quarter results reflect the strength of Talaat Moustafa Group’s integrated business model, alongside strong local demand in the real estate market and the group’s ability to meet market needs through a fully integrated global business platform targeting multiple customer segments.”
He added: “The successful launch of The Spine, which generated sales exceeding EGP 30bn within two weeks, reinforces the strength of our new vision and our ability to continue delivering long-term growth.”
