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Earnings Report

Abu Dhabi Ship Building Co

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Abu Dhabi Ship Building PJSC reported stronger Q1 2026 profitability supported by significantly higher contract revenues, operational execution, and reversal of expected credit loss provisions. The Group operates across commercial and military shipbuilding, vessel repair, naval support services, and systems integration activities.

The company continued focusing on expanding maritime and defense operations while improving collections, operational efficiency, and project execution during the quarter.

2. Financial Performance Snapshot

  • Contract revenues: AED 426.0M

  • Gross profit: AED 27.7M

  • Profit before tax: AED 6.9M

  • Net profit after tax: AED 6.3M

  • Basic & diluted EPS: AED 0.0299

Compared to Q1 2025:

  • Revenue increased from AED 253.1M to AED 426.0M

  • Gross profit increased from AED 25.3M to AED 27.7M

  • Net profit increased from AED 1.0M to AED 6.3M

Additional profitability drivers included:

  • AED 7.7M reversal of expected credit losses

  • Lower finance costs compared to Q1 2025

3. Operational Highlights & Key Metrics

  • Total assets: AED 2.49B

  • Total equity: AED 326.5M

  • Cash & bank balances: AED 382.2M

  • Cash & cash equivalents: AED 261.2M

  • Trade & other receivables: AED 1.59B

  • Contract assets: AED 174.7M

  • Contract liabilities: AED 275.5M

  • Bank overdrafts: AED 121.0M

Additional highlights:

  • Property, plant & equipment additions totaled AED 9.3M during Q1 2026

  • Contract assets declined significantly from AED 304.6M at year-end 2025

  • Trade receivable expected credit loss provisions declined from AED 23.4M to AED 16.1M

  • EDGE Defense Platforms & Systems remains the parent shareholder with 49.96% ownership

4. Key Performance Drivers

  • Strong increase in contract revenues supported profitability growth

  • Improved collections and revised expected credit loss methodology positively impacted earnings

  • Lower finance costs supported bottom-line performance

  • Operational execution across maritime and naval projects improved margins

  • Continued investment into infrastructure, equipment, and systems integration capabilities

The Group also recorded:

  • AED 7.3M reversal of receivable-related expected credit losses

  • AED 130.3M improvement in contract asset working capital movement

  • AED 184.9M improvement in receivables and supplier advances movement

5. Outlook & Forward Guidance

  • Continued focus on commercial and military maritime project execution

  • Ongoing investment into naval support services and systems integration operations

  • Management continues focusing on operational efficiency, collections, and working capital optimization

  • ADSB aims to strengthen its position within the UAE’s maritime and defense ecosystem

  • Continued support from EDGE Group remains strategically important for future growth initiatives

The Group also continues operating through subsidiaries involved in naval support, marine maintenance, systems integration, and defense technology implementation.

6. ???? Investor Takeaway

ADSB delivered stronger Q1 2026 profitability driven by significantly higher revenues, improved operational execution, lower finance costs, and reversal of expected credit loss provisions, while continuing to strengthen its maritime and defense operations portfolio.