Emirates Mobility Company

1. Company Overview & Earnings Context

Emirates Mobility Company P.J.S.C., formerly Emirates Driving Company P.J.S.C., is an ADX-listed mobility company. On 12 May 2026, the Company announced its strategic transformation and rebranding from Emirates Driving Company to Emirates Mobility, with its ADX trading symbol changing from DRIVE to EMOBILITY. The transformation reflects an expansion beyond traditional driver training into a broader integrated mobility ecosystem. 

The Group now spans driver training, transport, courier and delivery services, limousine operations, automotive services, EV charging infrastructure, technology/software activities and mobility-related investments. Its parent is Two-Point Zero Group P.J.S.C., while Fount Trust is the ultimate parent. 

For the nine months ended 30 September 2026, Emirates Mobility reported revenue of AED 537.6 million, down 4.5% YoY, while net profit declined 22.5% to AED 210.7 million. Management attributes the weaker comparison mainly to a shift in customer demand across driving-course categories, continued investment in expansion and the absence of substantial prior-year non-recurring gains from property disposals. 

Importantly, 2026 is also a transformation and investment year. The Group completed its acquisition of Performise Labs, continued investing in EV charging through ChargePoint, maintained its strategic investment in Mwasalat and reorganized the legacy driver-training business under Emirates Driving Company L.L.C.

2. Financial Performance Snapshot

• Revenue: AED 537.6 Million (-4.5% YoY)

• Direct Expenses: AED 206.0 Million (+4.7%)

• Gross Profit: AED 331.6 Million (-9.4%)

• Gross Margin: 61.7% vs. 65.0%

• G&A Expenses: AED 123.7 Million (+6.0%)

• EBITDA: AED 273 Million vs. AED 332 Million (-17.8%)

• Finance Costs: AED 12.4 Million vs. AED 6.2 Million

• Rental Income, Net: AED 11.0 Million vs. AED 3.8 Million

• FVTPL Gain: AED 3.3 Million vs. AED 6.4 Million

• Gain on Assets Held for Sale: AED 1.4 Million vs. AED 30.7 Million

• Share of Profit from Associate: AED 3.6 Million vs. Nil

• Interest Income: AED 24.4 Million vs. AED 24.6 Million

• Profit Before Tax: AED 244.4 Million (-23.0%)

• Income Tax: AED 33.7 Million vs. AED 45.6 Million

• Net Profit: AED 210.7 Million (-22.5%)

• Parent-Attributable Profit: AED 205.7 Million (-21.8%)

• EPS: AED 0.19 vs. AED 0.24

• Q3 Revenue: AED 177.0 Million (-15.5% YoY)

• Q3 Net Profit: AED 66.0 Million (-41.6% YoY)

• Q3 EPS: AED 0.06 vs. AED 0.10

The reported earnings decline overstates some of the deterioration in recurring operations because the 2025 comparison benefited from significantly larger non-recurring property-disposal gains. Gains from assets held for sale fell to only AED 1.4 million in 9M 2026 from AED 30.7 million in the comparable period. 

Nevertheless, underlying operations also softened. Revenue declined while direct expenses increased, compressing gross margin to approximately 61.7% from 65.0%. G&A and finance costs also increased as Emirates Mobility invested in its expanded operating platform.

3. Operating Performance & Major Programs

The legacy driver-training franchise remains the Group's primary earnings engine. The newly established Emirates Driving Company L.L.C., to which the Group's driving-training business was transferred, generated AED 342 million of revenue versus AED 351 million and maintained a strong 81% gross margin. Net profit was AED 213 million versus AED 230 million. 

Excellence Group generated AED 204 million of revenue versus AED 212 million. Its driver-training business contributed AED 179 million versus AED 190 million, although courier, limousine and auto-repair activities provided diversification. Gross profit was AED 65 million, EBITDA AED 33 million and PAT AED 11 million. Management cited softer hospitality/corporate travel demand, higher fuel costs and a one-off cost associated with securing two plots in Jebel Ali and Al Qusais as earnings headwinds. 

A key strategic development was the 51% acquisition of Performise Labs, completed on 4 August 2026 for an initial AED 15 million cash payment. Performise brings AI-driven testing and automation capabilities into the Group's operations and contributed AED 1.2 million of revenue after consolidation. On a pro-forma basis, its 9M revenue increased 42% to AED 3.7 million.  

The EV infrastructure platform is also progressing. ChargePoint, 65%-owned by Emirates Mobility, signed an agreement with ITC to install 1,800 EV chargers. Management expects the network to go live in November 2026 and indicates AED 58 million of Phase 1 strategic investment, with 1,800+ chargers targeted by 2027. 

Mwasalat represents another major strategic investment. The associate generated AED 662 million of revenue, up 20%, and AED 175 million of EBITDA, up 34%. Emirates Mobility recognized AED 3.6 million as its share of Mwasalat's profit. The Group holds an option to increase its stake from 22.5% to 50.6%, exercisable through 31 December 2026; no binding decision to exercise had been made at 30 September.  

4. Key Performance Drivers

Driving-training demand and product mix weakened. Management attributes the revenue decline primarily to changing demand across course categories, with some categories seeing higher demand and others lower enrolments. It states that regional geopolitical tensions had not materially affected operations and considers a prolonged impact unlikely. 

Expansion costs pressured profitability. Direct expenses increased to AED 206 million, reflecting staff, depreciation and fuel costs associated with expansion. G&A increased to AED 124 million, partly because certain annual costs are now accrued monthly rather than primarily at year-end. 

Finance costs almost doubled to AED 12.4 million. This included AED 5.1 million of profit expense on the Murabaha facility used partly to finance the Mwasalat acquisition and AED 7.3 million of lease interest.

Prior-year one-offs created a difficult comparison. The Group recognized AED 30.7 million of gains on assets held for sale in 9M 2025 versus only AED 1.4 million in 2026. This roughly AED 29.3 million YoY reduction accounts for a meaningful part of the PBT decline. 

Rental income was a positive offset, rising to AED 11.0 million from AED 3.8 million, while Mwasalat contributed AED 3.6 million of associate profit.

The Group is deliberately investing ahead of revenue in new businesses. ChargePoint and Performise Labs remain early-stage platforms whose current results include investment before their targeted commercial scale. 

The combination means current reported earnings reflect both softer legacy training activity and upfront investment in the transition toward a broader mobility platform.

5. Balance Sheet, Backlog & Cash Flow

• Total Assets: AED 1.981 Billion vs. AED 2.090 Billion (-5.2%)

• Total Equity: AED 1.492 Billion vs. AED 1.509 Billion (-1.2%)

• Total Liabilities: AED 488.9 Million vs. AED 580.0 Million (-15.7%)

• Cash & Bank Balances: AED 769.7 Million vs. AED 946.5 Million

• Cash & Bank Balances / Assets: ~39%

• Property & Equipment: AED 316.8 Million vs. AED 299.9 Million

• Investment in Mwasalat: AED 321.5 Million

• Intangibles & Goodwill: AED 296.9 Million vs. AED 280.2 Million

• Trade & Other Receivables: AED 70.1 Million vs. AED 46.1 Million

• FVTPL Investments: AED 59.4 Million vs. AED 56.4 Million

• Murabaha Financing: AED 136.0 Million vs. AED 161.3 Million

• Lease Liabilities: AED 153.1 Million vs. AED 136.3 Million

• Operating Cash Flow: AED +186.7 Million vs. AED +261.2 Million

• Investing Cash Flow: AED (94.9) Million vs. AED +394.0 Million

• Financing Cash Flow: AED (268.5) Million

• Period-End Cash Equivalents: AED 146.7 Million

• Dividend to Parent Shareholders: AED 215.5 Million

• Dividend Per Share: AED 0.20 (+18%)

The balance sheet remains highly liquid, with cash and bank balances of approximately AED 770 million representing about 39% of total assets. Management highlights that this liquidity remained available after funding dividends, the Performise acquisition and settlement of contingent consideration. 

Operating cash flow remained positive at AED 186.7 million, although it declined approximately 29% YoY. Investing activities consumed AED 94.9 million, including AED 46.8 million of property/equipment purchases, AED 14.6 million net cash used for Performise Labs and AED 51 million of contingent consideration payments, partly offset by asset-sale proceeds and other receipts. 

Financing cash outflow was AED 268.5 million, primarily due to AED 215.5 million of dividends, AED 12.3 million of NCI dividends, lease payments and Murabaha repayments. Cash equivalents consequently declined to AED 146.7 million. 

The Group paid a 20-fils-per-share FY2025 dividend totaling approximately AED 215 million, an 18% increase from the prior distribution. 

Traditional industrial backlog/order book is not disclosed. However, ChargePoint's agreement to install 1,800 EV chargers provides a meaningful operational pipeline, while the Mwasalat option and expansion of training sites represent additional strategic growth opportunities. These should not be treated as conventional contracted backlog unless explicitly identified as such by the Company.

6. Investor Takeaway

Emirates Mobility's 9M 2026 results should be viewed as a transition-period performance rather than simply a 22% earnings decline.

The legacy driver-training franchise remains highly profitable, with EDC maintaining an 81% gross margin, but changing course mix and softer volumes reduced revenue. At the same time, Emirates Mobility is investing in a much broader ecosystem encompassing EV charging, AI/software, transport, limousine, courier, automotive services and strategic mobility investments.

Part of the YoY profit decline is explained by accounting comparability. The prior period included materially larger property-disposal gains, while 2026 carries higher staff, depreciation, G&A and finance costs associated with expansion. Even after adjusting conceptually for those one-offs, however, lower revenue and gross-margin compression show that the core business did experience some operational pressure.

The balance sheet provides substantial strategic flexibility. Cash and bank balances remain at AED 769.7 million, total liabilities declined approximately 16%, and operating activities still generated AED 186.7 million of cash. This liquidity is particularly important given the capital requirements of ChargePoint, Performise Labs, new training facilities and the potential decision regarding Mwasalat.

The growth pipeline is becoming more tangible. ChargePoint's planned 1,800-charger network could establish a meaningful EV-infrastructure platform; Performise adds AI and automation capabilities; Mwasalat is already delivering double-digit revenue and EBITDA growth; and the Jebel Ali/Al Qusais sites provide capacity for heavy-vehicle and bus-training expansion.

The key investor metrics to monitor are therefore recovery in driver-training revenue, gross-margin stabilization, EBITDA conversion, expansion-related cost discipline, operating cash flow, ChargePoint rollout and utilization, Performise commercialization, returns from Mwasalat and any decision to exercise the option to increase the Mwasalat stake to 50.6%.

There is also a notable accounting-development point: management states that IFRS 18, effective from 1 January 2027, is expected to have a material impact on the presentation of the Group's financial statements, and the Group is assessing its implications. 

Deloitte reviewed the interim condensed consolidated financial statements under ISRE 2410 and issued an unmodified conclusion, stating that nothing came to its attention causing it to believe the statements were not prepared, in all material respects, in accordance with IAS 34. The review report is dated 28 October 2026.  

Overall, Emirates Mobility remains financially strong and cash-rich, but 9M 2026 reflects the near-term cost of transforming a highly profitable driver-training franchise into a diversified mobility platform. The investment case increasingly depends on whether ChargePoint, Performise, Mwasalat and the wider mobility ecosystem can generate sufficient recurring earnings to offset softer legacy growth and deliver attractive returns on the capital being deployed.