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Earnings Report

National Central Cooling Co.

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

National Central Cooling Company PJSC (Tabreed) reported resilient Q1 2026 performance supported by stable chilled water demand, expanding district cooling operations, and continued contribution from associates and joint ventures. The Group operates across chilled water production, district cooling infrastructure, utilities, and energy-related services across the UAE and international markets.

Management highlighted continued operational stability despite regional geopolitical developments and ongoing investments into district cooling infrastructure and international expansion initiatives.

2. Financial Performance Snapshot

  • Revenue: AED 485.7M

  • Gross profit: AED 241.8M

  • Operating profit: AED 160.9M

  • Share of results from associates & joint ventures: AED 2.56M

  • Profit before tax: AED 92.9M

  • Net profit for the period: AED 84.6M

  • Profit attributable to shareholders: AED 78.2M

  • Basic EPS: AED 0.028

Compared to Q1 2025:

  • Revenue increased from AED 465.6M to AED 485.7M

  • Gross profit increased from AED 234.7M to AED 241.8M

  • Profit attributable to shareholders declined from AED 115.4M to AED 78.2M

  • Finance costs increased significantly to AED 76.2M

3. Operational Highlights & Key Metrics

  • Total assets: AED 16.54B

  • Total equity: AED 6.18B

  • Cash & cash equivalents: AED 756.5M

  • Property, plant & equipment: AED 4.45B

  • Finance lease receivables: AED 2.64B

  • Islamic financing arrangements: AED 1.74B

  • Non-convertible bonds & sukuk: AED 4.39B

  • Interest-bearing loans & borrowings: AED 141.6M

Additional highlights:

  • Revenue from supply of chilled water reached AED 464.4M

  • Revenue from value chain operations totaled AED 21.3M

  • UAE revenue contribution remained dominant at AED 459.8M

  • Outside UAE revenue contribution increased to AED 25.9M

4. Key Performance Drivers

  • Stable district cooling demand supported revenue growth during the quarter

  • Higher finance costs and increased borrowing-related expenses impacted bottom-line profitability

  • Strong operating margins continued supporting cash generation

  • Expansion of international operations and joint ventures contributed to revenue diversification

  • Continued infrastructure investment supported long-term district cooling capacity growth

The Group also recorded:

  • AED 33.8M finance costs related to sukuk

  • AED 21.8M profit on Islamic financing arrangements

  • AED 53.8M depreciation expense during the quarter

  • AED 357.1M net cash generated from operating activities

5. Outlook & Forward Guidance

  • Continued focus on expanding district cooling infrastructure and operational efficiency

  • Ongoing investment into regional and international cooling projects remains a strategic priority

  • Management continues monitoring geopolitical developments and macroeconomic conditions impacting operations

  • The Group remains focused on sustainable cooling solutions and long-term recurring revenue generation

  • Tabreed continues strengthening partnerships and joint ventures across regional infrastructure projects

The company also disclosed that as of April 2026 it increased its investment in Arctic Holdco SPV Ltd., increasing total investment in the joint venture to AED 1.22 billion.

6. 🧾 Investor Takeaway

Tabreed delivered stable Q1 2026 operational performance with continued revenue growth and strong cash generation supported by resilient district cooling demand, although higher finance costs and borrowing expenses weighed on bottom-line profitability during the quarter.