Apex Investment

1. Company Overview & Earnings Context

Apex Investment PSC reported its Q1 2026 results, reflecting modest revenue growth but a sharp decline in reported profitability, primarily impacted by market-related losses and external disruptions.

2. Financial Performance Snapshot

• Revenue: AED 210.7M (+7% YoY)

• Gross profit: AED 43.1M (vs AED 41.6M)

• Operating profit: AED 20.0M (↓ from AED 31.0M)

• Net profit (core business): AED 37M (↓ ~2% YoY)

• Net loss (reported, before tax): AED (94M) (vs loss of AED 23M)

3. Operational Highlights & Key Metrics

• Core segments performance:

• Catering & Facility Management (Services) remained strong

• Cement volumes increased (~+4% YoY)

• Segment contribution (page 3):

• Catering: AED 115M revenue, AED 25M profit

• Facility Management: AED 24M revenue

• Manufacturing: AED 54M revenue, loss of AED 6.5M

• Investments: loss of AED 115M (major drag)

• Balance sheet:

• Total assets: AED 2.35B

• Liquidity: ~AED 500M cash position

• Free cash flow (ex-Enercap): AED 21M

4. Key Performance Drivers

Apex’s Q1 2026 results were driven by a clear divergence between core operations and investment performance:

• Core business remained resilient, with operating profit tracking ahead earlier in the quarter

• Geopolitical disruptions in March led to demobilization of ~60% of offshore Oil & Gas operations, impacting high-margin activities

• Cost pressures across F&B and coal segments affected margins

• Enercap-related non-cash charges (~AED 10.9M) impacted operating profit

• Unrealized mark-to-market loss (~AED 115M) on equity portfolio was the primary driver of reported net loss

• Strong underlying margins, still ~700 bps ahead of competitors in core segments

5. Outlook & Forward Positioning

• Core business momentum remains intact, supported by demand in services and cement segments

• Market losses are non-cash and tied to volatility, with partial recovery already seen post quarter

• Enercap commercialization progressing, with improved capital efficiency (cash burn ↓ ~34% YoY)

• Performance dependent on stabilization of geopolitical and market conditions

6. ???? Investor Takeaway

Apex delivered resilient core operating performance in Q1 2026, but reported losses were driven by market volatility and one-off factors, highlighting a strong underlying business with earnings sensitivity to external shocks and investment portfolio movements.