Earnings Report

Palms Sports

Q1 26

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.