ESG Emirates Stallions Group Reports Strong H1 2026 Results

1. Company Overview & Earnings Context

ESG Emirates Stallions Group (ADX: ESG), a subsidiary of International Holding Company (IHC), operates across four core business verticals, including manpower solutions, real estate development, design & interiors manufacturing, and agriculture & landscaping. The Group has more than 50 subsidiaries, operates in over 15 countries, and employs more than 20,000 people.

For H1 2026, ESG delivered another strong financial performance, reporting higher revenue, operating profit, and net profit compared with the same period last year. Growth was primarily supported by the Real Estate and Manpower businesses, continued expansion of its development pipeline, and higher contributions from associates and joint ventures. Management also highlighted a stronger balance sheet, reflecting growth in assets, equity, and book value per share.

2. Financial Performance Snapshot

• Revenue: AED 766.7 Million

• Gross Profit: AED 263.6 Million

• Operating Profit Before Tax: AED 192.5 Million

• Income Tax Expense: AED 26.2 Million

• Net Profit: AED 166.3 Million

• Net Profit Attributable to Parent: AED 141.3 Million

• Basic EPS: AED 0.57

Compared with H1 2025:

• Revenue increased from AED 710.0 million to AED 766.7 million.

• Gross profit increased from AED 221.4 million to AED 263.6 million.

• Profit before tax increased from AED 132.3 million to AED 192.5 million.

• Net profit increased from AED 115.4 million to AED 166.3 million.

• Basic earnings per share increased from AED 0.38 to AED 0.57.

3. Operational Highlights & Key Metrics

• Total Assets: AED 4.79 Billion

• Total Equity: AED 3.20 Billion

• Total Liabilities: AED 1.59 Billion

• Cash & Bank Balances: AED 997.8 Million

• Property & Equipment: AED 363.5 Million

• Investment Properties: AED 471.0 Million

• Investments in Associates & Joint Ventures: AED 1.24 Billion

• Development Work in Progress: AED 544.6 Million

• Operating Cash Flow: AED 246.9 Million

• Revenue Growth: +8% YoY

• Operating Profit Before Tax Growth: +47% YoY

• Total Equity Growth: +10% versus December 2025.

4. Key Performance Drivers

ESG's H1 2026 performance was driven by continued strength in its Real Estate and Manpower verticals, alongside higher contributions from associates and joint ventures. Revenue growth, a gain on the deconsolidation of a subsidiary, and higher interest and other income supported profitability. The Group also continued advancing its real estate development pipeline while maintaining disciplined execution across its diversified operating platform. These positives were partly offset by higher administrative, selling, and distribution expenses as the business continued expanding.

5. Outlook & Forward Guidance

Management remains focused on maintaining operational discipline, expanding the Group's real estate development pipeline, strengthening performance across its business verticals, and pursuing carefully selected growth opportunities. ESG also aims to preserve financial flexibility through disciplined capital allocation while continuing to deliver sustainable long-term value for shareholders.

6. Investor Takeaway

ESG Emirates Stallions Group delivered a strong H1 2026 performance with solid revenue growth, significantly higher profitability, and a stronger balance sheet. Supported by its diversified business model, expanding real estate pipeline, and resilient operating businesses, the Group appears well positioned to continue executing its long-term growth strategy while creating value for shareholders.