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Earnings Report

Salik Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Salik Company PJSC (Salik) reported stable Q1 2026 profitability while continuing to generate strong cash flows from Dubai’s tolling infrastructure operations. The Company operates and maintains Dubai’s toll gate system and also provides seamless parking payment solutions across the emirate.

During Q1 2026, Salik operated a total of 10 toll gates following the addition of two new gates that became operational in November 2024. The Company continued benefiting from recurring tolling revenues, strong liquidity, and long-term concession rights with Dubai’s Roads & Transport Authority (RTA).

2. Financial Performance Snapshot

  • Revenue: AED 728.9M

  • Profit before tax: AED 405.8M

  • Net profit after tax: AED 369.3M

  • Basic & diluted EPS: AED 0.05 per share

Revenue Breakdown

  • Toll usage fees: AED 625.5M

  • Tag activation fees: AED 12.2M

  • Fines revenue: AED 69.1M

  • Miscellaneous revenue: AED 22.1M

Key Expenses

  • Concession fee expense: AED 144.6M

  • Finance costs: AED 69.5M

  • Operations & maintenance expense: AED 26.0M

  • Depreciation & amortisation: AED 36.3M

3. Operational Highlights & Key Metrics

  • Total assets: AED 8.43B

  • Total equity: AED 1.59B

  • Cash & cash equivalents: AED 1.61B

  • Borrowings: AED 4.0B

  • Intangible assets (mainly toll operation rights): AED 6.35B

Traffic & Tolling Operations

  • Salik now operates 10 toll gates across Dubai

  • Two new toll gates added in 2024 carried a combined valuation of AED 2.73B

  • Variable concession fee payable to RTA increased to 23.12% of toll usage fees

Cash Flow Highlights

  • Operating cash flow: AED 636.5M

  • Net increase in cash: AED 1.10B

Dividend

  • Shareholders approved a dividend of AED 890.3M

  • Equivalent to 11.8712 fils per share

4. Key Performance Drivers

  • Stable toll traffic volumes across Dubai road networks

  • Continued contribution from the two new toll gates

  • Strong recurring tolling revenue model

  • Growth in miscellaneous and parking-related revenue streams

  • Lower finance costs compared to Q1 2025

  • Strong cash generation and liquidity buildup during the quarter

However, profitability remained broadly flat year-on-year due to:

  • Slight decline in toll usage revenue

  • Higher employee-related expenses

  • Ongoing concession-related costs payable to RTA

5. Outlook & Forward Guidance

Salik continues focusing on:

  • Expanding Dubai’s smart mobility ecosystem

  • Optimising traffic flow through tolling infrastructure

  • Growing parking payment solutions and digital services

  • Maintaining strong dividend distributions and shareholder returns

  • Enhancing operational efficiency and technology capabilities

The Company also highlighted that traffic activity can experience moderate seasonality, especially during summer periods. Management additionally noted that regional geopolitical developments are being closely monitored, although no material financial impact was identified during Q1 2026.

6. 🧾 Investor Takeaway

Salik delivered another quarter of strong profitability and cash generation, supported by Dubai’s resilient traffic ecosystem, recurring tolling revenues, growing liquidity, and long-term concession rights. While revenue moderated slightly year-on-year, the business continues to maintain high margins, strong dividend capacity, and stable long-term infrastructure-driven cash flows.