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Sixth of October Development and Investment Company (SODIC) achieved record-breaking contracting sales performance during the first nine months of 2026, recording EGP 42.4 billion compared to EGP 19.6 billion during the same period in 2025—a growth exceeding 116%. This surge was primarily driven by high demand for the company's North Coast developments.

North Coast Claims Lion's Share of Sales and Deliveries

Financial and operational results for the period ending September 30, 2026, revealed that North Coast projects topped company sales at EGP 24.26 billion, followed by East Cairo developments at EGP 12.08 billion, and West Cairo projects at EGP 6.07 billion.

On the deliveries front, total delivered units increased by 8% to reach 1,001 units, up from 926 units in the corresponding period. Deliveries were breakdown as follows:

558 units in North Coast developments.

344 units in West Cairo developments.

99 units in East Cairo developments.

Strong Cash Flows and Balanced Revenue Growth

The company experienced positive cash flow momentum, with net cash collections rising by 18.4% to EGP 16.9 billion (compared to EGP 14.3 billion). Capital expenditures allocated to construction work reached EGP 8.4 billion, representing a 1% year-on-year increase.

Total revenue reached EGP 10.8 billion, up 2%, with West Cairo developments contributing 42% of the financial value of delivered units—led by the "VYE" project alone at 32%—while East Cairo developments contributed 20%.

Delivery Mix Shift Pressures Profit Margins

Conversely, gross profit declined to EGP 2.8 billion (26% margin) compared to EGP 4.65 billion (43% margin) in the corresponding period of 2025. SODIC attributed this decline mainly to a shift in the "delivery mix," as current period deliveries were concentrated in projects more significantly impacted by consecutive EGP devaluations, unlike 2025 deliveries which included ready-to-move units with higher profit margins.

Consequently:

Operating profit dropped to EGP 1.4 billion (13% margin) from EGP 3.2 billion.

Net profit after tax and non-controlling interests declined to EGP 1.3 billion (12% margin) compared to EGP 2.3 billion.

Earnings per share (EPS) decreased to EGP 1.00, down from EGP 1.82.

Financial Position and Backlog Indicators

Cash & Debt: Cash and cash equivalents stood at EGP 4.7 billion, while outstanding bank debt rose to EGP 11 billion, bringing the bank debt-to-equity ratio to 0.66x (compared to 0.62x at end-2025).

Receivables: Total receivables reached EGP 119.1 billion (including EGP 25.1 billion in short-term receivables). This includes EGP 13.7 billion linked to delivered units recognized as revenue, and EGP 105.3 billion for sold units not yet delivered.

Unearned Revenue: Unearned revenue from sold units under development reached EGP 133.7 billion, underscoring a massive and sustained sales backlog for ongoing projects.

Management Outlook

Eng. Ayman Amer, General Manager of SODIC, stated that Q3 2026 sales were powered by strong performance across North Coast projects, noting that 9M results reflect solid sales growth and improvement across key performance indicators. He added that the company expects to maintain this momentum and finish 2026 on a strong note.