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Earnings Report

Abu Dhabi Aviation Co

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Abu Dhabi Aviation PJSC (ADA), an integrated aviation services group listed on ADX, reported its Q1 2026 results, reflecting resilient performance despite a more complex operating environment, supported by its diversified aviation and MRO platform.

2. Financial Performance Snapshot

  • Revenue: AED 2.01B (+1.4% YoY)

  • EBITDA: AED 149.9M (7.5% margin)

  • Net Profit: AED 124.4M (6.2% margin)

  • Adjusted Net Profit: AED 182.7M (9.1% margin)

3. Operational Highlights & Key Metrics

  • Core segment performance:

    • MRO segment contributed 88.3% of revenue (~AED 1.77B)

    • General Aviation contributed ~AED 252M (12.6%)

  • Fleet & scale:

    • ~70 aircraft, 5 simulators

    • 1.1M+ rotary wing hours

  • Balance sheet & liquidity:

    • Cash & equivalents: AED 2.18B

    • Total equity: AED 8.58B

    • Debt / EBITDA: 1.1x (conservative leverage)

  • Operational strength:

    • Strong demand in fleet support services (GAL)

    • Continued progress in OEM partnerships (AMMROC)

    • Expansion of Etihad Engineering hangar capacity

4. Key Performance Drivers

  • Resilient MRO segment, driven by sustained fleet support demand

  • Diversified customer base, supporting stable revenue

  • Integration benefits from AMMROC, Etihad Engineering, and GAL

  • Cost discipline and operational efficiency, supporting margins

  • Non-cash fair value movements, impacting reported profitability

5. Outlook & Forward Guidance

  • Focus on:

    • Expanding MRO capacity and capabilities

    • Fleet modernization and aviation services growth

    • Regional expansion, especially in emerging aviation markets

  • Strategic initiatives include:

    • eVTOL air taxi development (Archer Aviation partnership)

    • Air Taxi Egypt expansion

    • Training programs with UAE GCAA (Al Jeer initiative)

  • Positioned to benefit from:

    • Structural demand in aviation, defense, and energy support services

6. ???? Investor Takeaway

Abu Dhabi Aviation delivered a resilient Q1 2026 with stable revenue and solid underlying profitability, supported by its dominant MRO segment and diversified aviation operations, while reported earnings were impacted by non-cash valuation movements.