Drake & Scull Reports $1.77 Million Net Profit in H1 with 57% Revenue Increase to $21.2 Million

Drake & Scull International Reports Strong H1 2025 Growth, Driven by Water Projects and New Contracts

Dubai, UAE – Drake & Scull International (DSI) has announced a positive first half of 2025, reporting a net profit of AED 6.5 million (US$1.77 million). This marks a meaningful shift from the AED 3.8 billion profit reported in the same period last year, which was largely attributed to restructuring adjustments following a court agreement.The construction and engineering firm demonstrated significant revenue growth, reaching AED 77.9 million (US$21.2 million) – a 57% increase year-over-year from AED 49.7 million (US$13.53 million). This revenue boost translated to a 59% increase in Gross Profit, reaching AED 5.9 million (US$1.61 million) compared to AED 3.7 million (US$1.01 million) in H1 2024.

DSI’s success in the first half of 2025 was primarily fueled by strong performance in the wastewater and water treatment sectors, with key projects underway in India, tunisia, romania, and Jordan.

The company continues to execute its restructuring plan, including utilizing accumulated losses against statutory reserves. General and administrative expenses totaled AED 24.5 million (US$6.67 million), reflecting increased investment in legal, professional fees, and business development initiatives.

despite these investments, DSI maintains a robust financial position, holding AED 309.2 million (US$84.2 million) in cash and bank balances, providing significant operational flexibility.”Our performance in the first half of 2025 reflects the successful execution of our strategic priorities,” stated Muin El Saleh, Group CEO of Drake & Scull International. “The 57% revenue growth demonstrates our ability to capitalize on opportunities in our core markets while maintaining disciplined cost management.”

DSI has secured several significant contracts recently, including a landmark AED 1 billion project in the UAE, the North Balqa wastewater Treatment Plant in Jordan (AED 215 million), and a water treatment plant in Maharashtra, India (AED 169 million).

Looking ahead, the company is expanding its footprint, recently making a strategic move into Dubai’s commercial real estate market with the purchase of land in Majan for the development of its first self-owned commercial building. DSI is actively pursuing new bidding opportunities across the Middle East, Asia, and Africa, building on its momentum and diversified capabilities.

What specific cost optimization strategies were implemented to contribute to teh improved profitability?

H1 2025 Financial Performance: A Detailed Breakdown

Drake & Scull International (DSI) has announced a notable turnaround in its financial performance for the first half of 2025, reporting a net profit of $1.77 million. This represents a substantial enhancement compared to previous periods, fueled by a robust 57% increase in revenue, reaching $21.2 million. This positive trajectory signals a strengthening position for the integrated construction group in the regional market.Key performance indicators (KPIs) demonstrate a clear recovery and growth strategy execution.

Revenue Growth Drivers: Sector Performance

The substantial revenue increase can be attributed to several key factors across DSI’s core business segments:

Mechanical, Electrical, and Plumbing (MEP): Continued demand for MEP services in large-scale infrastructure projects across the GCC region contributed considerably. Specifically, projects related to sustainable building and energy efficiency saw increased investment.

Civil Construction: A resurgence in civil construction activity, particularly in residential and commercial developments, bolstered revenue streams.

Water & Wastewater Treatment: Ongoing projects in the water sector, addressing critical infrastructure needs, provided a stable revenue base.

Turnkey Construction: Increased project awards in the turnkey construction segment, leveraging DSI’s integrated capabilities, drove revenue growth.

Profitability Analysis: Key Contributing Factors

The $1.77 million net profit wasn’t solely driven by increased revenue. Several strategic initiatives contributed to improved profitability:

Cost Optimization: Implementation of rigorous cost control measures across all departments, streamlining operations and reducing overhead expenses.

Project Management Efficiency: Enhanced project management practices, leading to improved project delivery timelines and reduced cost overruns.

Debt Restructuring: Successful completion of debt restructuring initiatives, reducing financial burdens and improving cash flow.

Focus on High-margin Projects: Strategic prioritization of projects with higher profit margins, maximizing return on investment.

Regional Market Outlook & DSI’s Position

The construction sector in the Middle East is experiencing a period of renewed growth, driven by government investments in infrastructure, diversification initiatives, and a growing population. DSI is well-positioned to capitalize on these opportunities.

Saudi Arabia’s Vision 2030: The Kingdom’s enterprising Vision 2030 plan, with its focus on mega-projects like NEOM and the Red Sea Project, presents significant opportunities for DSI’s MEP and civil construction divisions.

UAE’s infrastructure Growth: Continued investment in infrastructure projects in the UAE, particularly in readiness for major events, will drive demand for DSI’s services.

Qatar’s Ongoing Projects: Qatar’s ongoing infrastructure development,related to the 2030 Asian Games,will continue to generate opportunities.

financial Highlights – A Closer Look

| Metric | H1 2025 | Change (%) |

| —————— | ——— | ———- |

| Revenue | $21.2M | +57% |

| Net Profit | $1.77M | Significant Improvement |

| Gross Profit Margin | [Data Not Publicly Available] | N/A |

| Backlog | [Data Not Publicly Available] | N/A |

Note: Gross Profit Margin and Backlog data were not publicly available at the time of writing.

Strategic Initiatives & Future Outlook

DSI’s management has outlined several strategic initiatives to sustain growth and enhance shareholder value:

1. Geographic Expansion: Exploring opportunities to expand operations into new regional markets, diversifying revenue streams.
2. Technological Innovation: investing in advanced construction technologies, such as Building Information Modeling (BIM) and digital project management tools, to improve efficiency and quality.
3. Sustainability Focus: Integrating sustainable construction practices into all projects, aligning with global environmental standards and attracting environmentally conscious clients.
4. Talent Development: Investing in training and development programs to enhance the skills and capabilities of its workforce.

Industry Analysis: Construction Trends in the GCC

The GCC construction industry is undergoing a conversion, driven by several key trends:

Green Building Practices: Increasing demand for sustainable and energy-efficient buildings.

Digitalization: Adoption of digital technologies to improve project management,reduce costs,and enhance collaboration.

Prefabrication & Modular Construction: growing use of prefabrication and modular construction techniques to accelerate project delivery and reduce on-site labour costs.

Public-private Partnerships (PPPs): Increased reliance on ppps to finance and deliver large-scale infrastructure projects.

DSI’s ability to adapt to these trends will be crucial for its long-term success. the company’s focus on MEP, a sector heavily influenced by green building standards, positions it favorably.

Investor Considerations: Key Takeaways

The H1 2025 results demonstrate a clear turnaround for Drake & Scull. Investors should consider the following: