AI Summary
Ahmed Gamaledin, CFO of Almasar Alshamil Education
Ahmed Gamaledin, CFO of Almasar Alshamil Education, told Argaam that the company continued its strong momentum during the first nine months of the year, reflecting record enrollment growth, with total students reaching 28.0k. Gamaledin added that the strong growth was driven by both the company’s Special Needs Education and Care division, which saw revenue increase 23%, and Higher Education, which saw revenue increase 24%.
In the interview, Gamaledin explained that as is common with education institutions, the company saw operating losses in the third quarter as revenues decline relative to other quarters as there are very limited revenues recorded during the summer academic break, while costs continue to accrue during that time. while costs continue to accrue during that time. He further noted that Company delivered strong financial results during the nine-month period needed and remains positive on the outlook for Q4 2025.
Regarding the ongoing IPO and upcoming listing, Gamaledin said the management team’s focus remains on executing the company’s growth strategy and driving organic expansion across both the Special Needs Education and Care division (SEC) and Higher Education segments where the company will look to continue to expand HDC’s footprint to meet growing demand for specialized education and care services and look to further grow the student body at Middlesex University Dubai through targeting new international markets.
1- What are the driving factors for the strong revenue growth for 9M 2025 by 24% year-on-year?
Our revenue grew by 24% year-on-year to reach SAR 336 million, reflecting strong performance across both our Special Needs Education and Care (SEC) and Higher Education divisions. In SEC, HDC delivered a 23% increase in revenue to SAR 155 million, supported by a 25% rise in beneficiaries to 8k and the expansion of its network to 39 daycare centers and 14 schools. At Middlesex University Dubai, revenue increased by 24% to SAR 181 million, driven by over 12% growth to 6.4k students, with international students now representing more than half of the total student body.
2- Can you elaborate on the key factors behind Q3 2025 performance being lower than Q1 and Q2 2025 and whether there are seasonal factors to consider?
As is common with education institutions, we traditionally see operating losses in the third quarter when revenues decline relative to other quarters as there are very limited revenues recorded during the summer academic break, while costs continue to accrue during that time. The loss during the period therefore reflects this usual seasonality that also affected the same period last year. 9M 2025 provides more meaningful comparison relative to the prior year, where we delivered strong financial results and are positive on the outlook for Q4 2025 and the remainder of the academic year, supported by record student and beneficiary enrollment as the Company grows and scales.
3- Year-to-date EBITDA grew around 7% year-on-year versus higher revenue growth of 24%. What factors contributed to this movement in margin?
The EBITDA growth by 7% to SAR 129 million was driven by strong revenue growth across HDC and MDX as well as improved performance from NEMA Holding. However, the growth in EBITDA was impacted by higher head office costs associated with establishing our new Riyadh head office. Looking at our results on a segment basis, which excludes head office costs, you can see the strong underlying performance as EBITDA at HDC grew 16% year-on-year in the 9M 2025 period and EBITDA at MDX grew 18%.
4- How did Middlesex University Dubai perform during the period?
Middlesex University Dubai continued to perform exceptionally well, with revenue rising 24% year-on-year to SAR 181 million, supported by enrollment growth of over 12% to 6.4k students. Importantly, international students grew by 39% to 3.4k and now represent over 50% of our total student base, reflecting the success of our global recruitment strategy. A major milestone this year was the launch of The London Sports Institute, which enhances our academic and research offerings in sports science and demonstrates our commitment to broadening MDX’s international footprint.
5- Can you elaborate on the performance and future growth pipeline of your SEC business?
Our Special Needs Education and Care division (SEC)unit continued its strong growth trajectory, with revenue up 23% year-on-year to SAR 155 million. This was driven by the continued expansion of our network and a robust 25% increase in the number of beneficiaries we serve to 8k. During the first nine months of 2025, we opened four new daycare centers, following eight new openings in 2024, as well as adding four additional schools to our network, bringing our total to 39 centers and 14 schools. Looking ahead, we will continue expanding HDC’s footprint to meet growing demand for specialized education and care services, with over ten centers and schools currently under development.
6- What are your priorities following the IPO and this first reporting period?
Our focus following the IPO remains on executing our growth strategy and driving organic expansion across both the SEC and Higher Education segments. At HDC, this includes launching additional daycare centers and expanding school partnerships across the Kingdom. We are also focused on ramping up recently opened centers over the next 12 to 24 months and strengthening program quality through continuous staff training and development. Additionally, we will continue our preparation for launching a new service line for 24/7 special needs services in residential centers, when relevant regulations finalize and the market opens up for the private sector.
In Higher Education, we aim to continue to grow student enrollments at Middlesex University Dubai by targeting new international markets and introducing in-demand programs aligned with job-market needs.
7- Can you comment on your outlook for the rest of FY 2025?
As mentioned, we delivered strong financial results for the first nine months of 2025 and we had a strong student and beneficiary intake in September, which supports a positive outlook for the fourth quarter and the remainder of the academic year. Our Q4 2025 performance, which is typically our strongest quarter, is expected to be supported by record student and beneficiary enrollments.
8- How is the company positioned to deliver shareholder value post-listing?
Almasar Alshamil is well positioned to deliver consistent growth and long-term value for shareholders. With a diversified business, operating clear market leaders across very attractive education segments in both Saudi Arabia and the UAE, we are confident that we can continue to grow and support the societies we operate in. Financially, we have demonstrated our ability to grow revenues and profits at high rates and we are supported by a strong balance sheet that enables us to continue investing in high-impact growth opportunities whilst delivering long-term value for our shareholders.
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