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Earnings Report

Palms Sports

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Palms Sports PJSC reported its Q1 2026 results, showing steady revenue growth and a modest increase in net profit, supported by core service segments including guarding, training, and education.

2. Financial Performance Snapshot

  • Revenue: AED 288.5M (+4% YoY)

  • Gross profit: AED 53.8M (+12% YoY)

  • Profit before tax: AED 22.2M (+11% YoY)

  • Net profit: AED 18.3M (+5% YoY)

  • EPS: AED 0.12 (unchanged YoY)

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.02B

  • Total equity: AED 571.1M

  • Cash & bank balances: AED 170.8M

  • Investments in financial assets: AED 82.3M (down vs Dec-25)

  • Dividends paid: AED 85.05M during the quarter

4. Key Performance Drivers

As seen in the income statement (page 4), performance was supported by core operations but impacted by investment-related movements:

Key drivers included:

  • Revenue growth across segments, particularly guarding & cleaning services and training activities

  • Improved gross profit (+12%), indicating better cost efficiency

  • Negative fair value changes on financial assets (AED -12.8M) impacting overall profitability

  • Higher operating expenses, including administrative costs

  • Stable earnings per share despite profit growth

Overall, core business segments showed resilience, while market-linked investment movements weighed on profitability growth.

5. Outlook & Forward Guidance

Palms Sports operates a diversified business model spanning sports services, education, and security solutions, with revenue largely generated within the UAE.

Key factors to watch going forward:

  • Performance of financial investments and fair value movements

  • Growth in core service segments (training, guarding, education)

  • Cost management and margin sustainability

  • Macroeconomic and geopolitical developments in the region

6. 🧾 Investor Takeaway

Palms Sports delivered steady top-line growth and stable profitability in Q1 2026, with core operations performing well despite headwinds from investment valuation changes.