TAM CEO expects revenue, margins to normalize in H2 2025

TAM Development Co. expects revenue to improve in the second half of 2025 as it resumes several delayed projects, while profit margins are projected to return to normal levels of 10-15% once implementation phases are completed, CEO Abdullah Yousef Andjani told Argaam.

The company’s overall performance depends on the pace of project awards in the market. Early signs point to a recovery in awards and improved visibility in the second half, Yousef said.

The value of TAM’s projects under implementation, including framework agreements, has risen to SAR 225 million, he added. Projects under execution stood at SAR 165 million as of June 30, 2025, of which SAR 96 million were framework agreements, compared with SAR 249 million at the end of 2024. The project pipeline awaiting approval remains strong at SAR 309 million.

TAM’s net profit growth in the first half of 2025 was supported by an improved project mix and steady gross profit, despite higher financing costs, Yousef said.

“The increase in net profit margin to 14.5% from 9.5% in H1 2024 reflects improved operational efficiency and disciplined cost management, which offset pressure on revenue and higher financing costs during the period,” he added.

On the company’s market share, the CEO said: “We are closely monitoring our competitive position and are confident in our strong and growing presence in the market. Sales growth, contract awards, and customer retention remain the best indicators of our competitiveness, and all continue to be strong.”

TAM’s net profit rose 2% year-on-year to SAR 11.6 million in H1 2025, up from SAR 11.4 million a year earlier, according to Argaam data.