3Q results from Lulu, DAE, Binghatti, and Alec Holdings

Weak consumer sentiment weighs on Lulu’s 3Q earnings

Lulu Retail reported USD 29.1 mn in 3Q 2026 net income, down 19.1% y-o-y despite revenue rising 2% to USD 1.9 bn, according to an ADX disclosure (pdf). EBITDA stood at USD 175 mn, while gross income fell 1.2% y-o-y to USD 443.5 mn.

The bottom-line decline came on the back of non-food sales remaining under pressure from weak consumer sentiment, despite improving from 2Q. Total operating expenses increased 1.2% y-o-y, while costs across the store network fell modestly. Lulu opened five stores during the quarter, bringing its YTD openings to 22. E-commerce sales rose 53% y-o-y to USD 177 mn, accounting for 9.7% of retail sales.

By region: The UAE remained Lulu’s largest market, generating USD 729 mn in revenue, up 4.9% y-o-y. Saudi Arabia revenue fell 6.6% y-o-y to USD 342 mn, while Oman grew 1.2% to USD 291 mn. Qatar revenue declined 2.3% y-o-y to USD 252 mn, while Kuwait recorded 9.9% growth to USD 188 mn. Revenue from other markets, including external sales from sourcing centers, increased 12.4% y-o-y to USD 133 mn.

9M performance: Revenue slipped 1.1% y-o-y to USD 5.9 bn in the first nine months of the year, while net income dropped 27.5% to USD 118.1 mn.

Lease of life

A larger leasing portfolio and higher aircraft-sale gains lifted Dubai Aerospace Enterprise’s (DAE) 3Q net income 6.8% y-o-y to USD 135 mn, according to the aviation services firm’s financials (pdf). The rise followed a roughly 57% y-o-y drop in 1H net income, by our math. Total revenue, including other income, rose 33.8% y-o-y to USD 581 mn. Macquarie AirFinance (MAF), which DAE took over on 28 July, contributed USD 184.9 mn in revenue and USD 25.4 mn in net income through the end of September.

A bigger fleet brought bigger costs: Depreciation and amortization jumped 54.8% y-o-y to USD 264.7 mn in 3Q, and finance expenses rose 35.5% to USD 189 mn. Together, those increases absorbed most of the quarter’s revenue gain.

The nine months look weaker: 9M net income fell 43% to USD 323.2 mn, mainly because ins. recoveries dropped to USD 10 mn from USD 312.2 mn a year earlier. Revenue rose 13.2% to USD 1.4 bn, with net lease revenue up 21.8% to USD 1.3 bn. Engineering maintenance revenue halved to USD 76.2 mn, as customers couldn’t bring aircraft in for scheduled maintenance, and labor revenue fell because of the regional situation, the company says.

Binghatti doubles revenue as finance costs bite

Binghatti Holding more than doubled its 3Q revenue, up 104.4% y-o-y to AED 5.4 bn, as property handovers picked up pace, while net income climbed 69.2% to AED 1.4 bn, according to the developer’s reviewed interim financial statements (pdf). Core residential property development, including its signature branded partnerships, drove virtually all revenue, contributing nearly AED 5.4 bn, a 99.6% share, in 3Q. Revenue from services brought in AED 17.2 mn, and sales from restaurants provided AED 5.3 mn.

For 9M, revenue climbed 66.2% y-o-y to AED 14.9 bn, helping to lift the company’s bottom line by 65.4% to AED 4.4 bn. Results for the period were also buoyed by a AED 433.9 mn boost from a fair value gain on financial investments.

Alec rebounds in 3Q, but backlog heads lower

A rebound in energy services helped Alec Holdings swing back into the black in 3Q, with net income nearly doubling y-o-y to AED 375.3 mn following a AED 16.6 mn loss just one quarter earlier, according to the company’s earnings release (pdf). Revenue rose 38.4% y-o-y to AED 4.9 bn, while the net margin widened to 7.6% from 5.4%.

Energy services drove the comeback: The division generated AED 186.1 mn in gross earnings in 3Q, more than double a year earlier, with its margin recovering to 11.3% from a negative 16.1% in the previous quarter. 2Q offshore stoppages and higher project costs pushed Alec into a quarterly loss. For 3Q, building and construction remained the biggest top-line contributor, with revenue up 54.5% y-o-y to AED 3.1 bn.

On a 9M basis, net income rose 36.5% y-o-y to AED 589 mn as revenue jumped 56% to AED 13.9 bn. But the scars from 2Q are still visible: the net margin slipped to 4.2% from 4.8%, while energy services’ gross margin fell to just 0.7% from 8.6% a year earlier. Cash conversion also lagged earnings growth, with operating cashflow falling to AED 505.6 mn from AED 1.1 bn as receivables tied up more working capital.

The order book is the one to watch: Backlog fell 9.3% from 2Q and 10.6% y-o-y to AED 29.4 bn as project execution outpaced new awards, with management flagging a slower and more competitive tendering market. Around AED 5.9 bn is expected to convert into revenue in 4Q, while Alec is still guiding for FY 2026 revenue growth of roughly 45-50%.