Salik Company

1. Company Overview & Earnings Context

Salik Company PJSC is a Dubai Financial Market (DFM)-listed company and the exclusive operator of Dubai's electronic toll collection system. The company manages toll gates across Dubai's road network, generating revenue primarily from toll usage fees, fines and tag activation fees. Salik is also expanding its presence in smart mobility and digital payment solutions through parking partnerships and other ancillary services.

For the nine months ended September 30, 2026, Salik reported total revenue of AED 2.12 billion, declining 6.9% year-on-year, while net profit decreased 8.6% to AED 1.05 billion. Performance was affected by lower traffic volumes following regional developments earlier in the year, resulting in fewer chargeable trips and reduced toll usage revenue. However, the third quarter showed signs of recovery, with sequential improvements in revenue, EBITDA, net profit and traffic activity. Despite the decline in earnings, Salik maintained strong profitability, reporting an EBITDA margin of 68.5% and a net profit margin of 49.4%.

2. Financial Performance Snapshot

• Total Revenue: AED 2.12 billion (-6.9% YoY)

• Toll Usage Revenue: AED 1.81 billion (-10.1% YoY)

• Fines Revenue: AED 220.1 million (+6.5% YoY)

• Tag Activation Fees: AED 37.7 million (+8.5% YoY)

• Other Revenue: AED 49.7 million (+132.1% YoY)

• EBITDA: AED 1.45 billion (-8.5% YoY)

• EBITDA Margin: 68.5%, compared with 69.6%

• Net Finance Costs: AED 192.2 million (-11.9% YoY)

• Profit Before Tax: AED 1.15 billion (-8.6% YoY)

• Income Tax Expense: AED 103.3 million

• Net Profit: AED 1.05 billion (-8.6% YoY)

• Net Profit Margin: 49.4%, compared with 50.3%

• Earnings Per Share (EPS): AED 0.1393 (-8.6% YoY)

• Operating Cash Flow: AED 1.05 billion (-28.9% YoY)

• Free Cash Flow: AED 1.05 billion (-28.9% YoY)

• Free Cash Flow Margin: 49.4%, compared with 64.7%

Compared with 9M 2025:

• Revenue decreased from AED 2.28 billion to AED 2.12 billion.

• Toll usage revenue declined from AED 2.01 billion to AED 1.81 billion.

• EBITDA decreased from AED 1.58 billion to AED 1.45 billion.

• Profit before tax declined from AED 1.26 billion to AED 1.15 billion.

• Net profit decreased from AED 1.14 billion to AED 1.05 billion.

• Earnings per share declined from AED 0.1525 to AED 0.1393.

• Operating cash flow decreased from AED 1.47 billion to AED 1.05 billion.

• Free cash flow declined from AED 1.47 billion to AED 1.05 billion.

• EBITDA margin decreased from 69.6% to 68.5%.

Source: Salik Q3 and 9M 2026 Financial Results, pages 3–4.

Salik Q3 2026 Press Release EN.Pdf.pdf

Salik Q3 2026 Press Release EN.Pdf.pdf

3. Operational Highlights & Key Metrics

• Total Assets: AED 7.83 billion (+3.5% YoY)

• Total Liabilities: AED 6.46 billion (-4.4% YoY)

• Total Equity: AED 1.37 billion (+69.8% YoY)

• Cash and Cash Equivalents: AED 583.2 million (+36.9% YoY)

• Short-Term Bank Deposits: AED 464.7 million (+83.0% YoY)

• Net Debt: AED 4.61 billion (-13.7% YoY)

• Net Debt-to-EBITDA Ratio: 2.29x

• Total Trips: 577.8 million (-8.1% YoY)

• Total Chargeable Trips: 419.3 million (-10.9% YoY)

• Peak-Hour Trips: 155.3 million (+2.0% YoY)

• Off-Peak Trips: 219.6 million (-20.1% YoY)

• Past-Midnight Trips: 44.5 million (+2.1% YoY)

• Active Registered Accounts: 2.9 million (+5.7% YoY)

• Ancillary Revenue: AED 26.5 million (+82.5% YoY)

• Q3 2026 Revenue: AED 705.3 million (-5.7% YoY, +3.2% QoQ)

• Q3 2026 Toll Usage Revenue: AED 607.3 million (-7.3% YoY, +5.2% QoQ)

• Q3 2026 EBITDA: AED 474.0 million (-8.6% YoY, +1.2% QoQ)

• Q3 2026 EBITDA Margin: 67.2%, compared with 69.4%

• Q3 2026 Profit Before Tax: AED 374.8 million (-8.5% YoY)

• Q3 2026 Net Profit: AED 341.1 million (-8.5% YoY, +1.9% QoQ)

• Q3 2026 Free Cash Flow: AED 494.6 million (+37.4% YoY)

• Q3 2026 Total Trips: 194.0 million (-5.0% YoY, +4.0% QoQ)

• Q3 2026 Chargeable Trips: 140.8 million (-7.4% YoY, +6.0% QoQ)

• Q3 2026 Free Cash Flow Margin: 70.1%

• Total Shares Outstanding: 7.5 billion

• Dividend Payout Policy: 100% of net profit, subject to approvals

Source: Salik Q3 and 9M 2026 Financial Results, pages 1–5. Balance sheet growth rates compare September 2026 with September 2025.

Salik Q3 2026 Press Release EN.Pdf.pdf

Salik Q3 2026 Press Release EN.Pdf.pdf

4. Key Performance Drivers

Salik's financial performance during the first nine months of 2026 was primarily affected by lower traffic volumes across Dubai's toll road network following exceptional regional developments that began in late February. Total trips declined 8.1% year-on-year to 577.8 million, while chargeable trips decreased 10.9% to 419.3 million. Consequently, toll usage revenue declined 10.1% to AED 1.81 billion, contributing to a 6.9% reduction in total revenue. Off-peak traffic experienced the largest decline, falling 20.1%, while peak-hour trips increased 2.0%, demonstrating relatively stronger demand during periods of higher road usage.

Despite lower toll revenue, Salik benefited from growth in other revenue streams. Fines revenue increased 6.5% to AED 220.1 million, while tag activation fees rose 8.5% to AED 37.7 million. Ancillary revenue grew 82.5% to AED 26.5 million, supported primarily by the Parkonic parking partnership and continued growth in the company's insurance partnership with Liva Group. These developments reflect Salik's efforts to diversify its revenue base beyond traditional toll collection and expand into integrated mobility and digital payment services.

Profitability remained strong but was affected by lower revenue and increased operating costs. EBITDA declined 8.5% to AED 1.45 billion, with its margin narrowing from 69.6% to 68.5%. The margin reduction reflected an increase in concession fees to 23.1%, alongside higher operation and maintenance expenses, employee costs, software enhancement expenditure and commissions paid to service providers. However, an 11.9% reduction in net finance costs helped partially offset the impact on profitability.

The third quarter demonstrated improving operating momentum, with total trips increasing 4.0% quarter-on-quarter to 194.0 million and chargeable trips rising 6.0% to 140.8 million. Revenue increased 3.2% compared with Q2 2026, while EBITDA and net profit improved 1.2% and 1.9%, respectively. Cash generation also strengthened significantly, with Q3 free cash flow reaching AED 494.6 million, compared with an outflow of AED 85.4 million in the preceding quarter.

Salik continued strengthening its financial position, reducing net debt by 4.0% since the beginning of the year to AED 4.61 billion. The company's net debt-to-EBITDA ratio improved to 2.29x, compared with 2.45x at the end of Q2 2026, providing additional financial flexibility to support future growth initiatives.

5. Outlook & Forward Guidance

Salik remains focused on its long-term growth strategy, supported by Dubai's continued economic development, population expansion, urban infrastructure investments and increasing demand for smart mobility solutions. Management expects traffic activity to continue recovering as mobility patterns normalize following the regional developments experienced earlier in 2026.

For FY 2027, Salik expects total revenue growth of 6–8% year-on-year, reflecting Dubai's broader macroeconomic outlook and anticipated improvements in traffic activity. The company forecasts an EBITDA margin of 69.5–70.5%, supported by an expected reduction in concession fees under the inflation protection mechanism, partially offset by higher operating and maintenance costs. Net profit margin is expected to reach 50.5–51.5%.

Salik continues expanding its digital mobility ecosystem through strategic partnerships and technology investments. During September 2026, the company renewed its technology partnership with TransCore for another five years, supporting tolling infrastructure, artificial intelligence applications, cybersecurity and integrated payment solutions. The company also launched seamless parking payments at Dubai Harbour through its partnership with Shamal, further extending the use of Salik accounts beyond toll collection.

Management remains confident in the medium- to long-term potential of ancillary revenue streams, particularly parking payments, insurance partnerships and other mobility-related services. Dubai's long-term urban development plans, including the Dubai 2040 Urban Master Plan, are expected to support future demand for transportation infrastructure and smart mobility services.

Salik also reaffirmed its dividend distribution policy of 100% of net profit, subject to Board recommendation and shareholder approval.

Salik Q3 2026 Press Release EN.Pdf.pdf

6. Investor Takeaway

Salik maintained strong profitability during the first nine months of 2026 despite lower traffic volumes and reduced toll usage revenue. Total revenue declined 6.9% to AED 2.12 billion, while net profit decreased 8.6% to AED 1.05 billion. Nevertheless, the company continued generating substantial earnings, maintaining an EBITDA margin of 68.5% and a net profit margin of 49.4%, highlighting the strength of its toll collection business model.

The third quarter showed encouraging signs of operational recovery, with improvements in traffic volumes, revenue, EBITDA and net profit compared with the previous quarter. Free cash flow increased 37.4% year-on-year during Q3 2026 to AED 494.6 million, while net debt declined to AED 4.61 billion, strengthening the company's financial flexibility.

Salik's expanding ancillary revenue streams, including parking payments and insurance partnerships, provide additional opportunities for long-term growth and revenue diversification. The company's FY 2027 guidance of 6–8% revenue growth, an EBITDA margin of 69.5–70.5% and a net profit margin of 50.5–51.5% reflects management's expectations for improving business conditions and operating efficiency.

Looking ahead, investors should monitor traffic volume recovery, chargeable trips, toll revenue growth, operating margins, debt levels and the contribution of new mobility services. Salik's exclusive tolling operations, strong cash generation, expanding smart mobility ecosystem and dividend payout policy remain important considerations for its long-term investment outlook.

Sources: Salik Company PJSC, Q3 and 9M 2026 Financial Results Press Release dated November 13, 2026, and Reviewed Condensed Interim Financial Statements for the nine months ended September 30, 2026. All financial figures are presented in AED unless otherwise stated.