Agility The Public Warehousing Company

1. Company Overview & Earnings Context

Agility Public Warehousing Company K.S.C.P. is a Kuwaiti-listed logistics and infrastructure group also listed on the Dubai market. The Group operates under the Makhazen brand and its activities include warehousing, transportation, distribution, customs clearance, customs consulting and related infrastructure and investment activities.

H1 2026 was heavily affected by large exceptional accounting charges. Revenue from continuing operations declined modestly to KD 71.51 million, while the Group recorded a KD 200.43 million net loss, compared with a KD 23.78 million profit from continuing operations in H1 2025.

2. Financial Performance Snapshot

• Revenue: KD 71.51 Million (-3.2% YoY)

• Net Revenue: KD 56.42 Million (-9.4% YoY)

• EBITDA: KD 189.34 Million Loss, vs. KD 32.20M profit

• EBIT: KD 193.67 Million Loss, vs. KD 28.19M profit

• Loss Before Tax & Directors' Remuneration: KD 200.27 Million

• Net Loss: KD 200.43 Million, vs. KD 23.78M profit from continuing operations

• Loss Attributable to Parent Shareholders: KD 206.79 Million

• EPS: 81.06 fils loss, vs. 7.23 fils earnings from continuing operations

The headline loss, however, was primarily driven by non-operating and exceptional charges rather than a collapse in revenue.

3. Operating & Segment Performance

Agility operates through four main segments: Industrial Real Estate, Trade Facilitation & Infrastructure, Investments and Other Businesses.

H1 2026 external revenue was split as follows:

• Industrial Real Estate: KD 23.87 Million

• Trade Facilitation & Infrastructure: KD 34.47 Million

• Other Businesses: KD 13.17 Million

• Total Revenue: KD 71.51 Million

Trade Facilitation & Infrastructure remained profitable at the EBITDA level, generating KD 18.17 million, while Industrial Real Estate recorded an EBITDA loss of KD 204.41 million because the large property-related charges were recorded within this segment.

Revenue itself was relatively stable, declining only 3.2% YoY. Rental revenue fell to KD 24.70 million from KD 28.23 million, while other revenue increased to KD 46.81 million from KD 45.64 million.

4. Key Performance Drivers

The single biggest factor was a KD 192.64 million fair value loss on investment properties. The Group also recognised KD 43.68 million of expected credit losses on trade receivables, compared with only KD 2.40 million in H1 2025.

These two charges alone total approximately KD 236.3 million, explaining most of the reported H1 loss.

The Group also benefited from KD 11.66 million of recoveries from favourable legal claims following an April 2026 Court of Cassation decision ordering the Public Authority for Industry to refund amounts previously paid by Agility. The amount was deposited and realised by the Parent Company in June.

Finance costs also increased to KD 7.35 million from KD 3.80 million, while general and administrative expenses improved to KD 24.60 million from KD 28.50 million. Agility additionally recorded KD 3.16 million as its share of results from associates.

5. Balance Sheet, Investments & Cash Flow

Agility ended June 2026 with:

• Total Assets: KD 829.33 Million

• Total Equity: KD 352.20 Million

• Total Liabilities: KD 477.13 Million

• Investment in Associates & Joint Ventures: KD 475.93 Million

• Investment Properties: KD 154.27 Million

• Bank Balances, Cash & Deposits: KD 43.43 Million

• Cash & Cash Equivalents: KD 38.71 Million

• Interest-Bearing Loans: KD 137.11 Million

The investment in associates remains a major part of the balance sheet. Agility's effective ownership in Agility Global PLC is 26.58%, and the investment is accounted for as an associate. The carrying value of investments in associates and joint ventures stood at KD 475.93 million.

Despite the accounting loss, cash flow remained positive. Operating activities generated KD 35.32 million, although this was down from KD 78.05 million in H1 2025. Investing activities generated another KD 30.90 million, while financing activities used KD 42.34 million. Cash and cash equivalents consequently increased to KD 38.71 million from KD 14.87 million at the beginning of the year.

6. Investor Takeaway

Agility's H1 2026 headline numbers look very weak, with the Group reporting a KD 200.43 million loss. However, the underlying picture is more nuanced because revenue declined only around 3%, while the loss was dominated by the KD 192.64 million property fair-value charge and KD 43.68 million expected-credit-loss provision.

Importantly, Q2 itself returned to profitability, with net profit of KD 21.70 million compared with a KD 549.52 million loss in Q2 2025. Profit attributable to Parent shareholders reached KD 18.57 million, while Q2 EPS was positive at 7.28 fils. The prior-year Q2 comparison was heavily affected by discontinued operations.

The balance sheet remains centred around Agility's associate investments, while operating cash flow stayed positive and cash balances increased during H1. The Group also approved a 2 fils cash dividend for FY2025, compared with 10 fils for FY2024, and transferred share premium and part of the statutory reserve to retained earnings to absorb accumulated losses.

The independent reviewers issued a qualified conclusion because they were unable to obtain sufficient audit evidence regarding the recoverability of a KD 64.49 million legal claim receivable from Kuwait's General Administration of Customs and the related interest. They also highlighted ongoing legal disputes concerning Public Authority for Industry properties. Going into H2 2026, the key areas to monitor are property valuations, legal claims, credit-loss provisions, Industrial Real Estate performance, operating cash flow, the value and contribution of Agility Global, and whether Q2's return to profitability can continue.