Orascom Development Egypt (ODE) (EGX: ORHD.CA) posted strong results for the first half of 2025, with net profit soaring 222% year-on-year to a record EGP 3 bn, supported by solid growth across its real estate, hotel, and recurring income businesses, Invest-Gate reports.

Total revenues rose 12.9% to bn, while adjusted EBITDA increased 19.3% to EGP 5.4 bn, with a margin of 47.2%. Recurring revenues jumped 44.3% to EGP 4.6 bn. ODE maintained a robust balance sheet, ending the period with EGP 8.1 bn in cash and a net debt-to-adjusted EBITDA ratio of 0.21x.

Real estate sales reached EGP 11.6 bn in 1H 2025, with international buyers accounting for 46% of the total. El Gouna led sales with 54%, followed by O West at 31% and Makadi Heights at 15%. Average selling prices per sqm rose sharply—up 45% in El Gouna, 77% in Makadi, and 27% in O West. Despite a 5.5% drop in real estate revenues to EGP 5.4 bn, cash collections grew 6.2% to EGP 7.8 bn, and deferred revenues climbed 40% to EGP 42.4 bn, providing strong visibility through 2029.

The hotel segment delivered outstanding growth, with revenues up 45.5% to EGP 2.7 bn and an adjusted EBITDA margin of 50%. In Q2 alone, hotel revenues increased 31.7% to EGP 1.5 bn, supported by high occupancy rates and strategic room rate adjustments, despite regional geopolitical challenges.

Recurring commercial income also performed strongly, with revenues up 42.6% to EGP 1.9 bn in 1H 2025. Adjusted EBITDA for the segment rose 42.8% to EGP 684.3 mn, reflecting its role as a stable cash flow generator and a buffer against economic volatility.

In Q2 2025, revenues reached EGP 5.1 bn, with adjusted EBITDA at EGP 2.0 bn and net profit of EGP 1.1 bn. The quarter’s performance was impacted by the absence of land sales compared to the same period last year, but normalized results still showed underlying growth across core operations.