AD Ports Group announces first quarter revenue of Dhs4.6 billion

AD Ports Group on Friday announced its financial results for the first quarter ending March 31st, 2025.

Building on the momentum of 2024’s record financial performance, the Group started 2025 with impressive double-digit growth from top-line to bottom-line, driven by the Ports, Economic Cities and Free Zones (EC&FZ), and Maritime and Shipping clusters.

In the first quarter of 2025, AD Ports Group recorded revenue of Dhs4.60 billion, marking an 18 per cent year-on-year increase, driven by strong performance in Ports, Economic Cities and Free Zones, and Maritime and Shipping clusters.

Group Ebitda amounted to Dhs1.14 billion in Q1, 2025, translating into a 9 per cent YoY growth, driven by a 17 per cent YoY increase in Ports, 10 per cent YoY in Maritime and Shipping, and 7 per cent YoY in Economic Cities and Free Zones (Group Ebitda Margin stood at 24.7 per cent in Q1 2025).

Moreover, total net profit soared 16 per cent YoY to Dhs464 million, mainly driven by the operating performance. Earnings Per Share (EPS) for the quarter stood at Dhs0.07, implying a 14 per cent YoY increase.

Capital expenditures (CapEx) for the first quarter of the year reached Dhs954 million, with majority of cash outlays going into Economic Cities and Free Zones, Ports (including Dhs182 million going into new and renewal of ports concessions), and Maritime and Shipping assets. Capex intensity continued to decline, reaching 21 per cent of Group revenue in Q1 2025, vs. 33 per cent in Q1 2024.

Operating Cash Flow, which amounted to Dhs725 million in Q1 2025 compared with Dhs781 million in the same period in 2024, was primarily impacted by the timing of collections, and thus unfavourable working capital changes. As a result, Free Cash Flow to the Firm (FCFF) was slightly negative for the quarter at Dhs -173 million.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said, “The positive momentum from our record 2024 financial results continued into the first quarter of 2025, as our resilient and value-adding business ecosystem of interrelated trade, transport, and logistics businesses weathered prevailing macroeconomic and geopolitical uncertainties to drive strong, double-digit growth in revenue and net profit.

The Q1 solid growth was driven by our Ports, Economic Cities and Free Zones, and Maritime and Shipping clusters, which continue to benefit from our agile response to ongoing geopolitical crises and our ongoing investments in core infrastructure amidst our international expansion.”

He added, “In line with the vision of our wise leadership in the UAE, we will continue to follow this prudent, profit-enhancing ‘intelligent internationalisation’ strategy this year as we carefully navigate the turbulence around us to maintain course and position of AD Ports Group, and Abu Dhabi, as world leaders in sustainable trade, transport, logistics, and economic development, drawing on the latest AI and technology innovations.”

Earlier AD Ports Group announced its preliminary unaudited financial results for the fourth quarter and full year ending Dec.31st, 2024.

The year was characterised by solid organic growth operationally and financially, fuelled by inorganic growth primarily coming from Noatum and GFS, a strengthened balance sheet with lower leverage and a stronger liquidity position, and significantly improved cash flow generation with the Group reaching positive Free Cash Flow to the Firm (FCFF) two quarters in a row in Q3 and Q4 2024.

Revenue increased 48 per cent YoY to Dhs17.29 billion fuelled by M&A contribution with healthy double-digit organic growth across the Group’s five business clusters ecosystem.

Ebitda recorded an impressive 69 per cent YoY growth to Dhs4.51 billion, implying an Ebitda margin of 26.1 per cent (vs. 22.8 per cent in 2023, +320 bps YoY). Strong operating performance was driven by the Maritime & Shipping, Ports, and Logistics Clusters.

Profit Before Tax and Minorities grew 45 per cent YoY to Dhs2.04 billion in 2024, whereas Group Total Net Profit increased 31 per cent YoY to Dhs1.78 billion, implying a Net Profit margin of 10.3 per cent.

AD Ports Group’s bottom-line performance was strong despite the introduction of corporate income tax of 9 per cent in the UAE in 2024.

Net Profit Attributable to Owners grew 24 per cent YoY to Dhs1.33 billion led by strong operating performance.

Total Assets grew by 15 per cent YoY to Dhs63.70 billion in 2024 while Total Equity increased 15 per cent YoY to Dhs27.83 billion.

Significant growth in operating profits together with plateauing debt levels led to a 110bps reduction in Net Debt/Ebitda ratio to 3.3x as of December 2024, down from 4.4x in 2023.

AD Ports Group strengthened its liquidity position with a cash & equivalents balance of Dhs2.83 billion at end of 2024 driven by earnings growth and an additional liquidity booster through the refinancing and upsizing of its bank facilities.