Billionaire Hisham Talaat Moustafa's TMG posts 24% Q1 profit jump to 110 million dollars

Hisham Talaat Moustafa is closing his best quarter in years. Talaat Moustafa Group, the Egyptian developer his family controls, posted a 24% year-on-year rise in first-quarter net profit to EGP 5.5 billion ($110 million), with revenue jumping 39% to EGP 13.1 billion ($262 million) on the back of stronger real estate and hospitality numbers.

Real estate did most of the lifting. Segment revenue climbed 61.6% to EGP 6.1 billion ($122 million) on faster construction, unit deliveries and revenue recognition from TMG's Saudi operations. Hospitality revenue grew 21% to EGP 4.3 billion ($86 million) on higher occupancy and room rates, while other recurring income from commercial leasing, sports clubs and community services rose 26% to EGP 2.7 billion ($54 million).

Margins held up. Gross profit rose 37% to EGP 4.6 billion ($92 million), with the gross margin barely changed at 35.4% from 35.9% a year earlier.

The sales pipeline tells the bigger story. Contracted sales hit EGP 49.1 billion ($982 million) in the quarter, and the unrecognized backlog grew to EGP 457.9 billion ($9.2 billion) from EGP 441.2 billion at the end of 2025. The standout was The Spine, TMG's newly launched integrated knowledge city inside Madinaty, which booked roughly EGP 30 billion ($600 million) within 15 days of launch.

Regional projects added to the haul. The Banan development in Saudi Arabia logged EGP 3.3 billion ($66 million) of Q1 sales, while the Yamal and Joud projects in Oman together generated about EGP 0.9 billion ($18 million). TMG also handed over 425 units across Madinaty, Privado and Celia.

The balance sheet looks fortified. Cash and equivalents climbed to EGP 86.7 billion ($1.7 billion) at the end of March from EGP 73.9 billion ($1.5 billion) at the end of 2025, against total debt of EGP 14.8 billion ($296 million).

Hospitality is also gathering pace. Occupancy ran at 63% against 60% a year earlier, and the average room rate jumped 15% to EGP 13,677 ($274). TMG signed Mandarin Oriental for the Winter Palace in Luxor and Old Cataract in Aswan, and brought in Four Seasons and Steigenberger for Elephantine Island. Construction is moving on Four Seasons Luxor, Four Seasons Madinaty, a Marsa Alam resort and a mixed-use scheme next to the Grand Egyptian Museum.

Moustafa framed the quarter as validation. "Our first-quarter results reflect the strength of Talaat Moustafa Group's integrated business model," he said, calling The Spine launch proof of the new vision.