Parkin Company

1. Company Overview & Earnings Context

Parkin Company P.J.S.C. is a Dubai Financial Market (DFM)-listed company and the exclusive operator of public parking services in Dubai. Under a 49-year concession agreement with the Roads and Transport Authority (RTA), Parkin manages paid on-street, off-street and multi-storey public parking, alongside selected developer-owned parking facilities. Dubai Investment Fund holds 75.01% of the company, with the remaining 24.99% publicly traded.

Parkin delivered a strong H1 2026 performance, with total revenues increasing 26% YoY to AED 748.3 million, EBITDA rising 23% to AED 448.5 million and net profit growing 23% to AED 351.4 million. Growth was supported by a significantly larger parking portfolio, strong seasonal card demand, developer parking expansion and higher enforcement revenue.

2. Financial Performance Snapshot

• Total Revenues: AED 748.3 Million (+26% YoY)

• Operating Profit: AED 405.1 Million (+20.7% YoY)

• EBITDA: AED 448.5 Million (+23% YoY)

• EBITDA Margin: 60%, compared with 62% in H1 2025

• Profit Before Tax: AED 386.95 Million (+23.5% YoY)

• Net Profit: AED 351.38 Million (+23.3% YoY)

• Earnings Per Share (EPS): AED 0.12, compared with AED 0.10 in H1 2025

Compared with H1 2025:

• Total revenues increased from AED 593.3 million to AED 748.3 million.

• Operating profit increased from AED 335.67 million to AED 405.06 million.

• EBITDA increased from AED 365.5 million to AED 448.5 million.

• Profit before tax increased from AED 313.21 million to AED 386.95 million.

• Net profit increased from AED 284.95 million to AED 351.38 million.

• EPS increased from AED 0.10 to AED 0.12.

3. Operational Highlights & Key Metrics

• Total Parking Spaces: 268.3K (+27% YoY)

• Public Parking Spaces: 203.2K (+8% YoY)

• Developer Parking Spaces: 61.5K (+214% YoY)

• Public MSCP Spaces: 3.7K (+16% YoY)

• Seasonal Cards Sold: 198.1K (+72% YoY)

• Total Fines Issued: 1.45 Million (+18% YoY)

• Weighted Average Public Parking Tariff: AED 3.01/hour (+8% YoY)

• Total Parking Transactions: 68.8 Million (-1% YoY)

• Free Cash Flow to Equity: AED 341.8 Million (+10% YoY)

• Cash Conversion: 97%

Parkin's total assets increased to AED 2.53 billion at the end of June 2026, while cash and cash equivalents almost doubled from year-end levels to AED 418.25 million. Total equity stood at AED 519.26 million.

4. Key Performance Drivers

Parkin's H1 growth was driven by several revenue streams beyond traditional public parking. Developer parking revenue increased 63% YoY to AED 69.4 million, supported by the expansion of developer parking capacity to 61.5K spaces from just 19.6K a year earlier. Seasonal cards and permits revenue also increased 63% to AED 154.5 million, while enforcement revenue rose 27% to AED 227.3 million.

The expansion of Parkin's parking portfolio was particularly significant. Total parking capacity grew 27% to 268.3K spaces, including a 214% increase in developer spaces. In cooperation with the RTA, Parkin added 9.9K public parking spaces during H1 2026, while several developer partnerships signed mainly during H2 2025 contributed to the rapid expansion of its developer portfolio.

Seasonal cards were another major growth engine, with sales increasing 72% YoY to 198.1K during H1. Management attributed the continued strong demand partly to the value proposition created by the gap between variable daily parking tariffs and unchanged seasonal card pricing.

Public parking was comparatively softer. H1 public parking revenue increased only 3% to AED 252.2 million, while utilisation declined to 21.0% from 25.2%. Management cited the shift toward seasonal cards, regional geopolitical factors and fewer chargeable days as contributing factors.

5. Outlook & Forward Considerations

Parkin said its overall FY 2026 financial outlook remains substantially unchanged, although it revised its expectations between individual revenue segments. Management now expects slightly lower public parking revenue to be offset by stronger contributions from seasonal cards and developer parking. Guidance for enforcement activities remains unchanged.

The company's public parking expansion has already exceeded its initial expectations. Management had originally anticipated adding up to 7.5K public parking spaces during 2026, but 9.9K spaces had already been delivered during H1.

Capital expenditure guidance remains at AED 45–55 million for FY 2026, supporting developer contract obligations and technology investments, including smart parking camera infrastructure. The amount includes up to AED 20 million associated with Dubai Sports City.

Parkin also confirmed that its dividend policy remains unchanged. During H1 2026, the company paid AED 343.72 million in dividends, compared with AED 280.87 million during H1 2025.

6. Investor Takeaway

Parkin delivered a strong H1 2026, with total revenues rising 26% to AED 748.3 million, EBITDA increasing 23% to AED 448.5 million and net profit growing 23% to AED 351.4 million. The results demonstrate that the company is increasingly benefiting from multiple revenue streams beyond traditional hourly public parking, particularly seasonal cards, developer parking and enforcement.

Operational expansion was equally strong. Parkin increased its parking portfolio by 27% to 268.3K spaces, while developer capacity more than tripled and seasonal card sales jumped 72%. Cash generation also remained robust, with AED 368.8 million of operating cash flow, free cash flow to equity of AED 341.8 million and a 97% cash conversion rate.

The key area to monitor is public parking utilisation, which declined despite the addition of new capacity. However, Parkin's ability to offset this softness through rapidly growing seasonal-card, developer-parking and enforcement revenues has kept its overall FY 2026 financial outlook broadly unchanged. The continued expansion of higher-growth revenue streams, together with its unchanged dividend policy, remains central to the investment case heading into H2 2026.