Tabreed posts AED 192 million in first-half profit as revenue grows 2%
Key Facts
Tabreed announced its first-half 2026 results on August 11, reporting revenue of AED 1.13 billion and net profit of AED 192 million for the period ended June 30. The company said revenue grew 2% year on year, supported by fixed capacity charges, capacity expansion and diversification across the value chain. The results showed continued business growth alongside higher financing costs. The company attributed those costs to the refinancing it carried out in 2025 at prevailing market rates, and to additional interest related to acquisition financing debt. These factors put net profit in the context of operational expansion and its financing.
Connected capacity stood at 1.58 million refrigeration tons on June 30, up 15% year on year, while organic projects added 4,500 refrigeration tons during the first half. Tabreed said revenue growth benefited from fixed capacity charges, alongside capacity expansion and diversification across the value chain. Capacity growth reflects an expanded operating base during the period, while the contribution from organic projects illustrates part of the ongoing expansion. In the first nine months of 2025, the company had reported connected capacity of 1.38 million refrigeration tons, up 4.5% year on year. It also said at the time that fixed capacity charges supported revenue despite milder weather in the third quarter.
Net operating cash flow improved 40% year on year in the first half to AED 632 million, and the company said its net debt-to-EBITDA ratio was 4.57 times at the end of June. Cash stood at AED 661 million on June 30, alongside an undrawn AED 1.2 billion revolving green credit facility. Tabreed said it had no near-term debt maturities. These indicators provide a picture of available liquidity alongside expansion financing and higher borrowing costs. The board also approved an interim cash dividend of 5.0 fils per share for the first half, equivalent to 74% of net profit for the period.
Part of the financing needs stem from Tabreed's acquisition of PAL Cooling, which was completed on October 13, 2025, at an enterprise value of AED 4.1 billion. The deal added around 600,000 refrigeration tons of capacity across eight concessions in Abu Dhabi. In its results for the first nine months of 2025, the company reported revenue of AED 1.87 billion, up 1% year on year, and EBITDA of around AED 975 million, up 5%. Net profit then was AED 420 million, compared with AED 425 million in the corresponding period of 2024. Tabreed said higher financing costs after issuing green sukuk to refinance previously low-cost debt weighed on profit, and that adjusted net profit would have risen around 5% after excluding those costs and non-recurring items.
In a separate review of second-quarter results, a U Capital assessment published on August 17 said net profit was AED 113.7 million, down 29% year on year and up 45% quarter on quarter. The assessment cited increases of 27.9% in administrative expenses and 13.9% in financing costs year on year. These figures do not represent the nine-month results, but provide a dated indication of the expense trend during the quarter. For its medium-term outlook, Tabreed maintained its expectation of annual capacity growth of between 3% and 5% through 2028. It also set organic capital expenditure of between AED 200 million and AED 300 million a year, and a target EBITDA margin of between 50% and 53%.
Among the projects forming part of the expansion is the Palm Jebel Ali district cooling system, with capacity of 250,000 refrigeration tons. The company said construction began in the third quarter of 2025, with cooling supply expected to start in 2027. The plan links current expansion with projects whose operational impact will extend into future years. In the first half of 2026, revenue growth was supported, according to the company, by fixed capacity charges, expansion and diversification across the value chain. The company's announced capacity, capital expenditure and EBITDA margin guidance remains its medium-term framework through 2028.