Earnings Report
Alpha Dhabi Holding
1. Company Overview & Earnings Context
Alpha Dhabi Holding PJSC is an Abu Dhabi-based public joint stock company listed on the Abu Dhabi Securities Exchange. Its parent company is International Holding Company PJSC.
The Group has a diversified portfolio of more than 250 companies, with over 95,000 employees across more than 50 countries. Its principal business activities include:
Real estate development, investment, leasing and management.
Engineering, construction, infrastructure and dredging.
Oil and gas engineering and services.
Tourism and hospitality.
Industrial production and manufacturing.
Agriculture, forestry and natural vegetation management.
Renewable energy and facilities management.
Healthcare, security services, digital banking and chemical production.
The Group reported a strong nine-month performance, with revenue increasing 6% and net profit increasing 23% year-on-year. Growth was supported by higher operating revenue, improved contributions from associates and joint ventures, and substantial investment-related gains.
A key distinction in assessing the results is that reported profit includes significant fair value gains on investments. Management also provides adjusted EBITDA, which excludes fair value movements and certain individual items to show underlying operating performance.
2. Financial Performance Snapshot
Key financial results – 9M 2026:
Revenue: AED 58.27 billion vs. AED 54.94 billion, up 6.1% YoY.
Direct costs: AED 44.81 billion vs. AED 42.30 billion, up 5.9%.
Gross profit: AED 13.46 billion vs. AED 12.64 billion, up 6.5%.
Gross margin: Approximately 23.1%, broadly stable compared with 23.0%.
General, administrative and selling expenses: AED 3.35 billion vs. AED 2.91 billion, up 15.2%.
Share of results of associates and joint ventures: AED 804.83 million vs. AED 409.10 million, up 96.7%.
Other income: AED 4.07 billion vs. AED 2.17 billion, up 87.9%.
Net finance costs: AED 832.38 million vs. AED 642.55 million, up 29.5%.
Profit before tax: AED 14.15 billion vs. AED 11.66 billion, up 21.4%.
Income tax: AED 1.35 billion vs. AED 1.24 billion.
Profit after tax: AED 12.80 billion vs. AED 10.42 billion, up 22.8%.
Profit attributable to owners: AED 7.78 billion vs. AED 5.52 billion, up 41.0%.
Profit attributable to non-controlling interests: AED 5.02 billion vs. AED 4.90 billion.
EPS: AED 0.77 vs. AED 0.54, up approximately 43%.
Underlying performance – adjusted EBITDA
Management reported the following:
Adjusted EBITDA: AED 13.9 billion vs. AED 12.8 billion, up 9%.
Reported EBITDA: AED 17.7 billion vs. AED 14.7 billion, up 21%.
Adjusted EBITDA margin: 24% vs. 23%.
Net profit margin: 22% vs. 19%.
The difference between reported and adjusted EBITDA is important. Reported EBITDA includes approximately AED 3.8 billion of fair value gains on FVTPL investments, whereas adjusted EBITDA excludes fair value movements and specified individual items.
Underlying-performance note:
The Group achieved growth in revenue, gross profit and adjusted EBITDA, indicating improvement in its operating platform. However, reported profit also benefited significantly from investment valuation gains. Therefore, the 23% increase in net profit should not be viewed entirely as growth in recurring operating earnings.
3. Operational Highlights & Key Metrics
A. Segment performance
The Group reports four principal operating segments: real estate, industrial, construction, and services and other.
Segment revenue includes inter-segment transactions before eliminations; consolidated revenue reflects the elimination of AED 2.76 billion.
Real estate
Largest revenue contributor, accounting for approximately 38% of consolidated revenue.
Revenue increased from AED 19.34 billion to AED 22.25 billion.
Profit after tax increased from AED 4.86 billion to AED 6.13 billion.
Segment assets were approximately AED 119.0 billion according to management's presentation.
Industrial
Revenue increased from AED 20.56 billion to AED 21.41 billion.
Profit after tax declined from AED 2.56 billion to AED 2.16 billion.
Segment gross profit declined from AED 3.22 billion to AED 2.80 billion.
Management identifies industrial activities as a major contributor to the Group's operating scale.
Construction
Revenue increased from AED 9.95 billion to AED 10.63 billion, including inter-segment sales.
Profit after tax declined from AED 570.01 million to AED 451.04 million.
The segment's profit contribution weakened despite revenue growth.
Services and other
Revenue was AED 6.74 billion.
Profit after tax increased to AED 4.82 billion from AED 3.44 billion.
This segment includes management services, hospitality and other smaller activities, as well as investment-related income.
Its profit contribution is significantly influenced by investment gains.
B. Major portfolio companies
Management highlighted the financial performance of major portfolio businesses, including:
Aldar: Revenue AED 21.4 billion; net profit AED 2.4 billion; backlog AED 51.3 billion.
NMDC: Revenue AED 26.2 billion; net profit AED 7.1 billion; backlog AED 80.3 billion.
PureHealth: Revenue AED 22.4 billion; reported EBITDA AED 4.2 billion; management presentation shows AED 1.8 billion net profit, including Alpha Dhabi's share of associate profit.
Trojan: Revenue AED 9.5 billion; net profit AED 490 million; backlog AED 33.3 billion.
These are portfolio-company figures presented in the management report, not additional revenue or profit to be added to Alpha Dhabi's consolidated results.
C. Global technology investment – Alpha Wave Ventures II
Alpha Dhabi has exposure to global technology through its investment in Alpha Wave Ventures II.
Key figures reported by management:
Alpha Dhabi commitment: AED 9.2 billion.
Fund NAV at 30 September 2026: AED 12.7 billion.
Unrealised fair value gain during 9M 2026: AED 3.4 billion.
Gross MOIC: 1.6x.
The portfolio includes investments in SpaceX, OpenAI, Anthropic and Cerebras.
During Q3, Alpha Wave began distributing shares held in SpaceX, and Alpha Dhabi received back approximately 35% of the shares.
This investment is an important source of growth and valuation upside, but its unrealised gains also contribute to volatility in reported earnings.
D. Private credit investments
The Group has committed AED 7.3 billion through two private credit vehicles:
MICAD joint venture with Mubadala Capital: AED 3.67 billion commitment, of which AED 830 million had been deployed.
Alpha Wave Private Credit: AED 3.67 billion commitment, of which AED 1.80 billion had been deployed.
Combined position:
Total commitment: AED 7.3 billion.
Deployed: AED 2.6 billion.
Remaining commitment/dry powder: AED 4.7 billion.
Portfolio investments: 82.
Management reported gross investment returns since inception of over 12% for MICAD and approximately 17% for Alpha Wave Private Credit.
E. Backlog and future performance obligations
The financial statements disclose total unsatisfied performance obligations of approximately AED 161.12 billion.
Breakdown:
Real estate development and sales: AED 71.56 billion.
Commercial and industrial services: AED 51.28 billion.
Construction contracts: AED 34.26 billion.
Management and related services: AED 4.01 billion.
This provides substantial visibility into future contracted activity, although the timing of revenue recognition will depend on contract execution and delivery.
4. Key Performance Drivers
Positive factors
Revenue increased 6.1%, supported by real estate and industrial activities.
Gross profit increased 6.5%.
Adjusted EBITDA increased 9%, indicating improvement in underlying operating performance.
Share of profits from associates and joint ventures nearly doubled.
Other income increased significantly, supported by investment valuation gains.
Real estate profit after tax increased to AED 6.13 billion.
Services and other profit after tax increased to AED 4.82 billion.
Alpha Wave Ventures II generated substantial unrealised valuation gains.
The Group maintained a sizeable contracted performance obligation base of AED 161.12 billion.
Negative factors
General, administrative and selling expenses increased 15.2%, faster than revenue growth.
Industrial segment profit declined despite revenue growth.
Construction segment profit also declined.
Net finance costs increased 29.5%.
Cash and bank balances declined from AED 40.26 billion to AED 36.50 billion.
Net debt increased from approximately AED 3.0 billion at December 2025 to AED 14.1 billion at September 2026, according to management.
Important earnings-quality observation
The Group's reported earnings benefited from approximately AED 3.78 billion in fair value gains on FVTPL investments. These gains are not equivalent to cash generated from operating activities.
Adjusted EBITDA of AED 13.9 billion provides a more useful measure of the underlying operating trend, although it is a management-defined measure and excludes certain items.
Investors should therefore monitor both operating performance and the realisation of investment gains.
5. Outlook & Forward Guidance
Management expressed confidence in the Group's diversified portfolio and its ability to continue delivering growth through operational expansion, investment and disciplined capital allocation.
Management guidance
The adjusted EBITDA target for 2026 is management guidance, not a reported result.
Balance sheet position at 30 September 2026
Total assets: AED 236.46 billion vs. AED 214.42 billion at December 2025.
Total liabilities: AED 121.83 billion vs. AED 110.38 billion.
Total equity: AED 114.63 billion vs. AED 104.04 billion.
Equity attributable to owners: AED 66.02 billion.
Non-controlling interests: AED 48.61 billion.
Cash and bank balances: AED 36.50 billion.
Investment properties: AED 35.22 billion.
Property, plant and equipment: AED 20.02 billion.
Investments in associates and joint ventures: AED 18.41 billion.
Financial investments: AED 20.67 billion.
Contract assets: AED 26.99 billion.
Inventories: AED 16.75 billion.
Development work-in-progress: AED 14.60 billion.
Debt and leverage
Management reported:
Borrowings and sukuk obligations, excluding leases: AED 47.4 billion.
Borrowing and lease obligations: AED 50.6 billion.
Cash and equivalents: AED 36.5 billion, including restricted cash of AED 5.5 billion.
Net debt, including leases: AED 14.1 billion.
Net debt/equity: 12.3%.
Net debt/EBITDA: 0.59x.
Management stated that most debt maturities are beyond three years, with no significant concentration of refinancing risk within one year. It also highlighted available undrawn facilities across the Group.
Liquidity and cash flow – 9M 2026
Net cash generated from operating activities: AED 3.76 billion vs. AED 4.07 billion.
Net cash generated from investing activities: AED 197.14 million, compared with AED 7.00 billion used in 9M 2025.
Net cash used in financing activities: AED 1.19 billion, compared with AED 3.23 billion generated in 9M 2025.
Net increase in cash and cash equivalents: AED 2.77 billion.
Closing cash and cash equivalents: AED 28.38 billion.
The balance-sheet cash and bank balance of AED 36.50 billion is different from cash and cash equivalents of AED 28.38 billion in the cash flow statement. The difference mainly reflects restricted cash and deposits with maturities exceeding three months.
Capital allocation and shareholder returns
Management highlighted a capital deployment programme of AED 30 billion over five years.
During 9M 2026:
Capital deployed: AED 2.4 billion.
Dividend paid to shareholders: AED 2.0 billion.
Share buybacks executed by 2 November 2026: AED 139 million.
Remaining buyback authorisation: AED 861 million.
The AED 2 billion dividend represented 20 fils per share and was paid on 15 April 2026.
Commitments and contingent liabilities
The financial statements disclose:
Letter of guarantees: AED 44.11 billion.
Letters of credit: AED 1.74 billion.
Capital commitments: AED 50.67 billion.
Purchase commitments: AED 5.85 billion.
Operating lease commitments as lessor: AED 14.93 billion.
Guarantees and letters of credit are issued in the normal course of business. These commitments should not be treated as equivalent to recognised borrowings, but they are important when assessing the Group's overall obligations and project exposure.
Subsequent events
The financial statements disclose two important post-period developments:
On 23 October 2026, a subsidiary committed up to USD 1 billion (AED 3.67 billion) to Alpha Wave Ventures III, a growth-stage technology fund focused on AI, AI infrastructure, AI-enabled businesses and life sciences. The commitment is expected to be drawn through capital calls.
On 15 October 2026, Aldar terminated and prepaid two bank loan facilities with an outstanding balance of AED 1 billion. This was treated as a non-adjusting subsequent event, so the September balance sheet was not restated.
6. Investor Takeaway
Alpha Dhabi Holding delivered a strong 9M 2026 performance, with revenue increasing 6.1% to AED 58.27 billion and net profit increasing 22.8% to AED 12.80 billion.
The Group's diversified operating businesses, particularly real estate and industrial activities, continue to provide a substantial revenue base. Adjusted EBITDA increased 9% to AED 13.9 billion, supporting the view that operating performance improved during the period.
However, reported earnings also benefited from approximately AED 3.8 billion in fair value gains on financial investments. This makes it important to distinguish recurring operating performance from investment valuation movements.
The balance sheet remains substantial, with total equity of AED 114.63 billion and management-reported net debt/EBITDA of 0.59x. Nevertheless, net debt has increased, and the Group has significant capital commitments and ongoing investment deployment plans.
Overall assessment: Alpha Dhabi combines a large operating portfolio with significant exposure to real estate, industrial businesses, private credit and global technology investments. Its growth outlook is supported by a sizeable backlog and management's capital deployment strategy. Key areas to monitor are the conversion of backlog into cash flow, investment valuation gains, segment profitability, debt levels and the execution of its AED 30 billion capital programme.
