AD Ports Group posts Dhs4.83b revenue for the second quarter

AD Ports Group on Wednesday announced its financial results for the second quarter of 2025.

The group’s revenue surged 15 per cent year-on-year (YoY) to Dhs4.83 billion in Q2 2025, driven by the Ports, Economic Cities & Free Zones, and Maritime & Shipping clusters.

Quarterly EBITDA increased 9 per cent YoY to Dhs1.17 billion, with group EBITDA margin standing at 24.2 per cent in Q2, 2025.

The group’s profit before tax reached Dhs519 million, up 5 per cent YoY, primarily due to the effect of higher depreciation and amortisation charges and finance costs.

Total net profit was relatively flat at Dhs445 million because of higher Income tax, while earnings per share (EPS) for the quarter stood at Dhs0.07, flat YoY.

Capital expenditure in the quarter totalled Dhs928 million, with most investment directed to Maritime & Shipping, Economic Cities & Free Zones, and Ports assets.

Capex intensity fell to 19 per cent of group revenue from 28 per cent a year earlier.

Given the strong operating profit performance and a cash conversion of 97 per cent for the quarter, operating cash flow reached Dhs1.14 billion in Q2 2025, almost doubling from the same period a year earlier. As a result, Free Cash Flow to the Firm (FCFF) was positive for the quarter and year-to-date. The group’s underlying operational performance was strong across the Ports, Economic Cities & Free Zones (EC&FZ), and Maritime & Shipping clusters, which all together constituted over 90 per cent of total Q2 2025 EBITDA. In Ports, quarterly container throughput soared 17 per cent YoY while general cargo volumes increased 13 per cent YoY.

The CMA Terminal at Khalifa Port, which began commercial operations at the start of 2025, achieved 80 per cent utilisation in the quarter and 62 per cent year to date.

In EC&FZ, another 600,000 m2 of land were leased in Q2 2025, bringing the total land leases year-to-date to 1.6 km2.

Utilisation in the staff accommodation business, Sdeira Group, increased to 80 per cent, up from 63 per cent in Q2 of 2024 and 75 per cent in Q1 of 2025.

In the Maritime & Shipping cluster, container feeder shipping volumes rose 34 per cent YoY, while the bulk, multipurpose, and Ro-Ro shipping vessel fleet reached 34 as of Q2 2025, up from 28 at the same period a year earlier.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said that the company’s five-cluster business model continued to deliver sustainable growth despite a challenging macroeconomic and geopolitical backdrop. He said the group’s strategic flexibility helped offset external headwinds and seize opportunities in dynamic markets such as the Red Sea and emerging trade corridors in Central Asia.

He added, “The long-term profitable nature of our value-enhancing internationalisation, which, in line with the vision of our wise leadership in the UAE, and despite all temporary obstacles, is positioning AD Ports Group as a leader in sustainable trade, transport, logistics, and economic development.”

Earlier in May AD Ports Group announced its financial results for the first quarter ending 31st March 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 of 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 Dhs173 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.

WAM