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Saudi equity research · Tadawul Main Market & Nomu
Research › Car Rental › Lumi

Lumi Rental Company

The fastest fleet build in the sector by a distance, and the only one of the three never to have declared a dividend. It earns the highest return on capital here and pays the highest price for that capital, which leaves it in much the same place as the other two.

Tadawul 4262 · The newest · FY2018 to FY2025
As a customer If you want the newest car on the lot
Net revenues
SAR 1.7B
FY2025
Net profits
SAR 198M
continuing operations
less
+0.6pt
10.7% against 10.2%
See the workings
Revenue growth
+7.7%
vs FY2024
See the workings
EBITDA margin
45.8%
before capital charges
See the workings
Free cash flow
SAR 144M
after capital spending
Dividends per share
SAR 0.00
declared
See the workings
Debt to equity
1.13x
balance-sheet risk
See the workings

Source FY2025 audited financial statements, restated in the modelWorkings data appendixUpdated 24 September 2026

The read

The fastest fleet build in the sector and the highest return on capital in it, at 10.7% against a sector median of 9.9%. Revenue of SAR 1.7B is 29.9% of the sector on the smallest fleet of the three, because it earns more per vehicle than either peer.

It is also the most expensive of the three to fund. Cost of capital of 10.2% is the highest in the sector, on the highest beta in it, which leaves a margin of +0.6pt over the hurdle in spite of the best return. Debt to equity of 1.13x sits between the other two, interest is covered 6.7x over, and receivables of 84 days are much the shortest here against a sector median of 123.

The distinguishing decision is what it does with the money, which is keep all of it. Lumi has declared no dividend in any year covered here: SAR 0.00 a share, 0.0% of net profit, against free cash flow of SAR 144M, the best in the sector. That is a defensible policy for a company whose fleet is still being built. It does mean the whole of a shareholder's return so far has had to come from the share price, and the share price has roughly halved since the first year quoted here.

The bet it made

Bought newest The fastest build, on the dearest capital.
The fleet 37,800 vehicles, the smallest fleet here and four and a half times its 2018 size. The build has slowed hard: up 11% in 2025 and 2% in 2024, against 70% in 2023.
What it hires out 41 rental points, 4 maintenance centers and 3 showrooms, much the smallest network. It still earns the most per vehicle of the three, about SAR 31,000 of hire revenue a year against SAR 27,000 at Budget Saudi.
How it is funded 1.13 debt to equity, between the other two, and the highest cost of capital in the sector on the highest beta of the three. It has never declared a dividend.
The exit Disposals are 30% of revenue at a 4% margin. It cycles nearly as much of its fleet through the used-car market as Budget Saudi and is paid a fraction as much for it.

Lumi built a fleet from 8,400 vehicles in 2018 to 37,800 in 2025, four and a half times over, and did much of it in a single year: 19,634 to 33,300 across 2023. It is the newest of the three to the market and by a distance the fastest builder in it.

The build has stopped being the story. The fleet grew 2% in 2024 and 11% in 2025, and revenue growth has come down from 40% to 8% over the same two years. What read as a growth company on the numbers is becoming a return-on-capital company, which is a harder thing to be in a sector with no barrier to entry.

Budget Saudi, Theeb, Lumi, 2018 to 2025Budget Saudi, Theeb, Lumi, 2018 to 2025 The figures are listed in the table below this chart.0%2%4%6%1819202122232425
Budget SaudiTheebLumi
Chart data
20182019202020212022202320242025
Budget Saudi0.5%4.4%0.4%2.7%1.3%0.8%2.2%1.3%
Theebn/a0.6%0.6%0.8%0.6%1.0%0.9%0.7%
Lumin/a0.6%0.6%0.5%0.3%1.1%1.5%1.9%
Capital expenditure as the cash flow statement reports it, as a share of revenue. Around one percent a year, from three companies that between them put another eighty thousand vehicles on the road over this period. The line is not wrong. It is answering a different question from the one most readers are asking of it.

Where the money comes from

Long-term leasing

SAR 653M and 39% of revenue, the largest line in the company and up 15% in 2025.

Short-term rental

SAR 517M and 31% of revenue, on 41 rental points: well under half the network Budget Saudi runs. It earns about SAR 31,000 of hire revenue per vehicle a year against SAR 27,000 at Budget Saudi, which is the whole argument for the smaller network.

Selling the vehicle

SAR 498M, 30% of revenue at a 4% margin. It cycles nearly as much of its fleet through the used-car market as Budget Saudi does and is paid a fraction as much for it.

What it does with the money

Nothing goes out. Lumi has declared no dividend in any year covered here, which on the reading this piece takes of cash flow in a fleet business is the coherent policy for a company still buying vehicles faster than it retires them.

It has not been rewarded for it. The share price has gone from SAR 100 in the first year quoted here to SAR 49.92, and price to book from 5.4 times to 2.0. The sector's EV/EBITDA came down from about nine times to under six over the same two years, so this is not only a Lumi story. Lumi simply started from the highest multiple and had the furthest to fall.

What comes back to shareholders

Of what it earned in FY2025, Lumi declared SAR 0.00 a share, 0.0% of net profit, against free cash flow of SAR 144M. In this sector the free cash flow figure is not the test it looks like: a fleet business shows a negative one while it is buying vehicles faster than it retires them, which is growth rather than distress. Read it beside the fleet count, not on its own.

In context

This company only means something next to the other two and against the economics of the industry they share.

Read the industry piece See it against the others