Ladun targets break-even by 2026-end: CEO

Hassan Alhazmi, CEO of Ladun Investment Co.

Hassan Alhazmi, CEO of Ladun Investment Co., said the company expects to reach break-even at the quarterly results level by the end of 2026 and move into profitability by the end of Q1 2027, provided business operations proceed as planned.

In an interview with Argaam, Alhazmi attributed the company’s weaker results in the recent period to its exit from several major projects, delays in the commencement of government contracting agreements, as well as ongoing financing costs and operating expenses.

He stressed that diversified revenue streams and new projects are strengthening the company’s ability to overcome such challenges.

The company retained its Saudi workforce despite lower revenues, the CEO said, noting that while it could have reduced costs in line with the decline in revenue, the board of directors opted to maintain the company’s operational capabilities as new projects were added to its portfolio.

The projects added to the company’s portfolio include the SAR 2.3 billion Real Estate Balance Program and the development of Al-Khalidiya district under the Developed Neighborhoods Program in Makkah, implying an estimated sales value of around SAR 7 billion.

The company also signed partnerships involving prime land plots with Asbar Capital in Riyadh and Al Rajhi Ekhwan Group in Makkah. In addition, its subsidiaries secured contracting and fit-out contracts from several clients.

Ladun is acting as the main contractor for The Point project in Abha, which Alhazmi described as the largest project by scale in Asir. The company is carrying out works worth approximately SAR 700 million on the project.