AX Group plc is forecasting continued growth in FY2026, with revenue expected to increase to €146.66 million and gross operating profit (GOP) projected to reach €49.38 million, according to its latest Financial Analysis Summary.

The projected performance builds on a strong FY2025 and is set to be driven primarily by real estate activity and a maturing hospitality portfolio, although certain operational disruptions are expected during the year.

The group’s real estate segment is forecast to be the largest contributor to revenue growth in FY2026, with turnover expected to rise to €48.22 million.

This increase is largely linked to further sales at the Verdala Terraces development, with €41.78 million in revenue anticipated from the conclusion of residential property transactions.

Segment profitability is also expected to improve significantly, with GOP projected to rise by over 70 per cent to €17.25 million, alongside a stronger margin of 35.77 per cent.

Hospitality to grow, supported by Verdala

Hospitality revenue is forecast to increase to €73.73 million in FY2026, with GOP expected to reach €29.86 million, maintaining a margin of just over 40 per cent.

Growth within the segment is expected to be driven largely by the Verdala Wellness Hotel, which will contribute a full year of operations following its launch in August 2025. The property is projected to generate €5.10 million in revenue and return to profitability, marking a turnaround from its initial start-up phase.

Meanwhile, the Group’s established hotel clusters in Qawra, Sliema, and Valletta are expected to register more moderate increases.

Planned closure to impact Qawra operations

However, the outlook for the hospitality segment is partly tempered by planned redevelopment works in Qawra.

AX Group expects the temporary closure of AX Sunny Coast Resort from late August 2026, as part of the next phase of its Qawra project.

The redevelopment will involve the demolition and reconstruction of the property into AX ODYCY Residences, alongside upgrades to the adjacent lido and surrounding facilities to create an integrated waterfront destination.

This closure is expected to limit growth in the Qawra hotels cluster, with revenue projected to remain broadly stable year-on-year despite overall demand trends.

Construction to recover from 2025 losses

The construction segment is expected to return to profitability in FY2026, with GOP forecast at €0.27 million, compared to a loss in the previous year.

Revenue is, however, projected to decline to €15.74 million, reflecting delays in certain client-driven projects, partially offset by stronger restoration activity.

Healthcare to deliver steady growth

The healthcare division is forecast to maintain its steady trajectory, with revenue expected to rise to €8.02 million and EBITDA projected to approach €2 million.

Operations at Hilltop Gardens and Simblija Care Home are anticipated to remain near full occupancy, supported by sustained demand for long-term and short-term care services.

Overall, AX Group’s FY2026 outlook reflects a combination of strong real estate activity, improving performance from newer hospitality assets, and ongoing investment in its property portfolio.