Madinet Masr announced its standalone financial results for the first quarter (Q1) of 2026, reporting resilient profitability, strong cash generation, and accelerated project deliveries despite a normalization in market demand following two years of exceptional growth.
The company recorded new sales of EGP 11.7bn during Q1 2026, compared to EGP 12.6bn in Q1 2025. The 7% year-on-year decline reflects what management described as a return to more sustainable market conditions, alongside the impact of ongoing regional geopolitical tensions on Egypt’s real estate market.
Despite softer sales activity, Madinet Masr delivered solid financial results, with revenue increasing by 7.4% year-on-year to EGP 2.8bn, up from EGP 2.6bn in the corresponding period of 2025. The growth was primarily driven by a sharp rise in unit deliveries across the company’s key developments.
During the quarter, the developer delivered 831 units, representing a 256.7% increase compared to the same period last year. Revenue generated from unit handovers surged by 138.5%, underscoring the company’s ability to convert contracted sales into recurring revenues and sustainable cash flows.
Madinet Masr reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of EGP 857.2m, achieving an EBITDA margin of 31.2%.
Net profit stood at EGP 682.5m, compared to EGP 794.9m in Q1 2025, while the net profit margin declined to 24.8% from 31% a year earlier. The company attributed the margin contraction to the higher contribution of delivery-related revenues, which typically generate lower margins than primary sales.
The company’s financial position remained robust, supported by strong customer collections and disciplined balance sheet management. Net cash collections rose 33.2% year-on-year to EGP 4.5bn, while the delinquency rate improved to 1%, compared to 1.6% in the first quarter of 2025.
Meanwhile, Madinet Masr’s backlog of unrecognized revenues reached EGP 98.2bn at the end of March 2026, providing strong visibility for future revenue growth and cash inflows.
Commenting on the results, Abdallah Sallam, President and Chief Executive Officer of Madinet Masr, said the company delivered a resilient performance despite the market’s return to normal demand levels and the broader geopolitical challenges affecting the region.
He noted that the substantial increase in deliveries reflects continued progress in construction activities across the company’s projects, while strong collections and healthy cash generation further enhanced its financial flexibility and operational resilience.
The first quarter also marked an important milestone in shareholder returns.
In March, Madinet Masr distributed its first-ever bonus shares, equivalent to 4.17% of capital, followed by a cash dividend of EGP 0.15 per share. Combined distributions amounted to approximately EGP 0.376 per share, representing a dividend yield of nearly 9% based on the stock’s closing price at the end of 2025.
The company’s share price also delivered strong performance during the quarter, rising 22% from EGP 4.23 in December 2025 to EGP 5.17 as of March 2026.
Looking ahead, Madinet Masr said it remains focused on accelerating project deliveries, maximizing returns from its extensive land bank, and expanding through subsidiaries and strategic partnerships.
The company is pursuing growth opportunities across construction, infrastructure, community management, real estate services, and fractional property investment, while maintaining disciplined capital allocation and a long-term commitment to sustainable growth and value creation.
