ESG Emirates Stallion Group

1. Company Overview & Earnings Context

ESG Emirates Stallions Group reported its Q1 2026 results, delivering a strong start to the year with solid revenue and profitability growth, supported by its diversified business model.

2. Financial Performance Snapshot

• Revenue: AED 370.1M (+11% YoY)

• Operating profit (before tax): AED 79.1M (+32% YoY)

• Profit before tax: AED 79.1M (+32% YoY)

• Share of profit from associates/JVs: AED 18.9M (+52% YoY approx.)

• Total equity: AED 3.11B (+6% vs Dec-25)

3. Operational Highlights & Key Metrics

• Total assets: AED 4.76B (+10% vs Dec-25)

• Current assets: AED 2.41B (+18%)

• Total liabilities: AED 1.66B (+18%)

• Operating footprint: 50+ subsidiaries across 4 sectors

• Geographic presence: 15+ countries

4. Key Performance Drivers

ESG’s Q1 performance was driven by steady revenue growth and strong operating leverage, with operating profit rising significantly faster than revenue (+32% vs +11%), as seen in the financial highlights on page 5.

Key contributors included:

• Diversified business model, spanning real estate, manpower, and services

• Higher contribution from associates and joint ventures, boosting profitability

• Strong execution across core verticals, particularly development and manpower segments

However, higher general & administrative expenses (AED 42.9M vs AED 23.2M YoY) and increased selling costs indicate continued investment in scaling operations.

5. Outlook & Forward Guidance

Management remains focused on sustainable growth, operational efficiency, and disciplined capital deployment, supported by a stronger balance sheet and diversified platform.

The Group aims to continue expanding across its core sectors while maintaining a long-term value creation strategy aligned with shareholder interests.

6. 🧾 Investor Takeaway

ESG delivered solid growth with strong operating leverage, supported by diversification, though rising costs reflect ongoing expansion efforts.