Earnings Report

NMDC Group

H1 26

1. Company Overview & Earnings Context

NMDC Group is one of the UAE's leading engineering, procurement and construction (EPC), dredging, marine infrastructure, and energy services companies. The Group operates across the UAE and international markets through its Dredging & Marine (D&M), Energy, and Infrastructure businesses. During H1 2026, NMDC delivered solid revenue growth and maintained strong profitability, supported by higher activity in its Energy business and robust second-quarter performance, while continuing to strengthen its balance sheet and project backlog.

2. Financial Performance Snapshot

Revenue: AED 14.13 Billion
Gross Profit: AED 2.00 Billion
Profit Before Tax: AED 1.86 Billion
Income Tax Expense: AED 253.4 Million
Net Profit: AED 1.61 Billion
Net Profit Attributable to Shareholders: AED 1.54 Billion
Earnings Per Share (EPS): AED 1.83

Compared with H1 2025:

Revenue increased 5.7% to AED 14.13 billion.
Gross profit decreased 7.1% to AED 2.00 billion.
Profit before tax declined 7.3% to AED 1.86 billion.
Net profit decreased 8.5% to AED 1.61 billion.
Earnings per share declined from AED 1.92 to AED 1.83.

3. Operational Highlights & Key Metrics

Total Assets: AED 39.43 Billion
Total Equity: AED 16.53 Billion
Cash & Bank Balances: AED 5.60 Billion
Net Cash Position: AED 4.84 Billion
Operating Cash Flow: AED 2.66 Billion
Free Cash Flow: AED 1.99 Billion
Capital Expenditure (Capex): AED 673 Million
Net Working Capital: AED 1.84 Billion
Awarded Projects (H1 2026): AED 7.8 Billion
Project Backlog: AED 56.1 Billion
Return on Average Equity (RoAE): 25.5%

4. Key Performance Drivers

Revenue growth was primarily driven by the continued expansion of NMDC Energy, whose revenues increased 16% year-on-year, while the Group's strong second-quarter performance was supported by improved profitability in the Dredging & Marine business. Operational efficiencies, cost savings, and the release of contingencies on projects nearing completion helped expand margins during Q2. Strong receivable collections also boosted cash generation, allowing the Group to maintain a healthy net cash position despite dividend payments, capital expenditure, and loan repayments.

5. Outlook & Forward Guidance

NMDC enters the second half of 2026 with a project backlog of AED 56.1 billion and AED 7.8 billion of new project awards secured during H1 2026. Management remains focused on executing its large project pipeline, expanding internationally, investing in fleet and yard upgrades, and maintaining disciplined capital allocation while supporting long-term growth across its Energy, Dredging & Marine, and Infrastructure businesses.

6. Investor Takeaway

NMDC delivered another solid set of H1 2026 results, combining revenue growth, strong profitability, robust cash generation, and a sizeable project backlog. While earnings softened modestly year-on-year due to a weaker first quarter, the strong rebound in Q2, healthy balance sheet, and substantial order book position the Group well for continued long-term growth.