Abu Dhabi Ports Company

1. Company Overview & Earnings Context

AD Ports Group is an ADX-listed global trade, logistics and industry group headquartered in Abu Dhabi. The Group operates across five main clusters: Ports, Economic Cities & Free Zones, Maritime & Shipping, Logistics and Digital, with a portfolio of 40 terminals, operations across more than 50 countries and over 570 km² of economic zones within KEZAD Group.

AD Ports Group delivered a strong H1 2026 performance, with revenue reaching AED 12.83 billion, up 36% YoY, while total net profit increased 64% to AED 1.49 billion. The second quarter was the Group's strongest quarterly performance on record.

2. Financial Performance Snapshot

• Revenue: AED 12.83 Billion (+36% YoY)

• EBITDA: AED 3.25 Billion (+41% YoY)

• EBITDA Margin: 25.3% (+0.8pp YoY)

• Profit Before Tax: AED 1.63 Billion (+58% YoY)

• Total Net Profit: AED 1.49 Billion (+64% YoY)

• Net Profit Attributable to Owners: AED 1.09 Billion (+64% YoY)

• EPS: AED 0.22 (+64% YoY)

• Cash Flow from Operations: AED 3.09 Billion (+66% YoY)

Growth accelerated further in Q2, with quarterly revenue increasing 47% to AED 7.08 billion, EBITDA rising 49% to AED 1.74 billion, and net profit almost doubling to AED 836 million, up 88% YoY.

3. Operational Highlights & Key Metrics

The Maritime & Shipping Cluster was the largest contributor to Q2 revenue, accounting for 53% of Group revenue. Cluster revenue surged 62% YoY to AED 3.82 billion, while EBITDA increased 79% to AED 1.03 billion. The bulk, multipurpose and Ro-Ro fleet reached 72 vessels, double the 36 vessels in the prior-year period.

The Economic Cities & Free Zones Cluster generated Q2 revenue of AED 1.29 billion, up 132% YoY, while EBITDA doubled to AED 659 million. The performance included a AED 650 million KEZAD warehouse sale; adjusted for the sale, cluster revenue grew 15% YoY.

The Logistics Cluster recorded revenue of AED 1.47 billion, up 30% YoY, while EBITDA jumped 154% to AED 94 million.

The Ports Cluster faced pressure from Strait of Hormuz disruptions, with Q2 revenue declining 17% YoY to AED 609 million and EBITDA falling 23% to AED 234 million. UAE container throughput declined 65% YoY to 573K TEUs.

4. Key Performance Drivers

AD Ports Group's H1 growth was supported by particularly strong performance across Maritime & Shipping, Economic Cities & Free Zones and Logistics.

Shipping benefited from elevated freight rates despite lower feeder volumes. Average rates for Gulf/Indian Subcontinent services increased 96% YoY, while Red Sea service rates rose 37% YoY during Q2.

The Group also benefited from asset monetisation, with the AED 650 million KEZAD warehouse sale contributing AED 294 million to Q2 EBITDA. Excluding the asset sale, Q2 EBITDA was AED 1.44 billion and net profit was approximately AED 551 million.

Despite regional disruptions, AD Ports expanded alternative supply-chain routes through Fujairah and Khor Fakkan, added 400 trucks, increased rail services and deployed six chartered aircraft. Warehousing and storage capacity supporting these routes exceeded 54,000 m².

5. Capital Allocation & Key Developments

AD Ports Group continued its global expansion strategy during the period.

The Group announced its largest-ever acquisition, agreeing to acquire Brazil's Corredor Logística e Infraestrutura (CLI) at an enterprise value of AED 3.1 billion, marking its entry into Brazil. The transaction is expected to close by the end of Q3 2026.

It also agreed to acquire Germany-based MBS Logistics for AED 300 million, with closing expected in Q4 2026, and completed the acquisition of an additional 30% stake in Global Feeder Shipping for AED 1.1 billion, increasing its ownership to 81%.

The Group also refinanced a USD 2.5 billion syndicated loan facility, extending its maturity to March 2029 while reducing future borrowing costs.

Capital expenditure reached AED 2.80 billion in H1 2026, up 52% YoY, while Free Cash Flow to the Firm was negative AED 1.38 billion, reflecting the Group's investment and acquisition activity.

6. Balance Sheet & Investor Takeaway

AD Ports Group ended June 2026 with AED 75.78 billion in total assets, up 13% YoY, and AED 30.07 billion in total equity. Total net debt stood at AED 22.73 billion, although Net Debt/EBITDA improved to 3.7x, compared with 4.1x a year earlier.

Liquidity remained substantial, with AED 3.36 billion in cash and cash equivalents and AED 5.89 billion in undrawn bank facilities, including an accordion option.

Overall, H1 2026 showed strong top-line growth, faster earnings growth and improving EBITDA margins, despite significant disruption to the UAE Ports business. Maritime & Shipping emerged as a major growth driver, while the Group continued deploying capital into international expansion.

Key areas to monitor in H2 2026 include the closing and integration of CLI and MBS Logistics, shipping rates, recovery in UAE port volumes, free cash flow, capital expenditure and leverage, alongside the impact of continuing regional geopolitical disruptions. The Group noted that effectively all of its facilities were operational as of the reporting date, although the potential financial impact of the evolving geopolitical situation could not yet be reliably forecast.