Parkin Q2 net profit rises 12% to Dhs166.2 million

Parkin Company PJSC (Parkin) announced its financial and operational results for the second quarter ended 30th June, 2026, reporting a 14 per cent increase in total revenue to Dhs364.1 million compared with the same period in 2025.

Net profit rose 12 per cent to Dhs166.2 million, supported by growth in seasonal cards, developer parking and enforcement. EBITDA increased 15 per cent to Dhs217.2 million from Dhs189.3 million, with an EBITDA margin of 60 per cent.

Eng. Mohamed Abdulla Al Ali, CEO of Parkin, said, "Parkin delivered a strong second quarter, with revenues up 14 percent to Dhs364.1 million, EBITDA up 15 per cent to Dhs217.2 million and net profit up 12 per cent to Dhs166.2 million. Growth was driven by our seasonal cards, developer parking and enforcement segments, offsetting softer public parking demand during the quarter."

He added that Parkin continued to execute its growth strategy, expanding its total parking portfolio by almost 57,000 spaces over the past 12 months. In cooperation with the Roads and Transport Authority (RTA), the company added 9,900 public parking spaces in the first half of 2026, while its developer parking portfolio more than tripled to 61,500 spaces through several strategic partnerships.

The company's total parking portfolio increased 27 per cent to 268,300 spaces from 211,500 in the second quarter of 2025. Public parking spaces increased by 14,500, or 8 per cent, to 203,200 from 188,700. Zone C accounted for 9,900 new spaces and Zone D for 4,500. During the second quarter alone, Parkin added 7,900 public parking spaces in cooperation with the RTA, with around 50 per cent of these introduced in June.

Following the introduction of the variable parking tariff in April 2025, Parkin's public parking portfolio was reclassified into Standard and Premium Parking. At the end of the second quarter, Standard Parking comprised 122,700 spaces, or 60 percent of the public parking portfolio, while Premium Parking accounted for 80,300 spaces, or 40 per cent.

Developer parking spaces increased to 61,500 from 19,600 a year earlier, mainly as a result of contracts signed and announced in the second half of 2025. Parkin added a further 2,400 developer spaces during the second quarter. Multi-storey car parking spaces increased by around 400 to 3,700.

Total parking transactions reached 34 million, up 2.6 per cent year-on-year. Public parking transactions declined to 27.2 million from 29.2 million, while developer parking transactions surged 75 per cent to 6.6 million from 3.8 million. Multi-storey car park transactions remained stable at 0.2 million.

The average public parking utilisation rate stood at 20.2 per cent, compared with 22.7 percent in the second quarter of 2025 and 21.8 percent in the first quarter of 2026. Seasonal card sales increased 38 percent to 97,500 from 70,900, while the weighted average hourly public parking tariff remained broadly stable at Dhs3.00, down 1 percent year-on-year.

Parkin's field enforcement teams scanned 8.3 million vehicle registration plates, up 1 percent, while its smart inspection fleet scanned 20.6 million plates, a 52 per cent increase from 13.5 million. The smart inspection fleet expanded to 37 vehicles from 25 a year earlier. Enforcement notices increased 5 per cent to around 695,000, of which 496,000, or 71 percent, related to public parking violations.

Public parking revenue declined 8 per cent to Dhs121.9 million from Dhs132.2 million. Developer parking revenue rose 61 percent to Dhs35.8 million, while revenue from seasonal cards and permits increased 50 percent to Dhs78.2 million. Enforcement revenue grew 11 per cent to Dhs107.5 million from Dhs96.7 million, while the fine collection rate stood at 75 per cent compared with 83 per cent a year earlier.

The variable concession fee paid to the RTA increased to Dhs55.2 million from Dhs49.2 million, while staff costs remained broadly stable at Dhs34.7 million, with an average headcount of 361 employees.

Free cash flow to equity reached Dhs341.8 million, with a cash conversion rate of 96 per cent. Parkin's net debt stood at Dhs710.1 million at the end of the quarter, while available liquidity amounted to Dhs563.2 million.

Parkin maintained its dividend policy, under which it intends to pay semi-annual dividends in April and October. For the first half of 2026, the company expects to pay a minimum dividend equal to the higher of 100 percent of net profit for the period or free cash flow to equity, subject to distributable reserve requirements.

For 2026, Parkin expects public parking revenue of Dhs510 million to Dhs550 million, enforcement revenue of Dhs420 million to Dhs460 million, seasonal card revenue of Dhs280 million to Dhs300 million and developer parking revenue of Dhs130 million to Dhs150 million.

Capital expenditure guidance remains at Dhs45 million to Dhs55 million, compared with Dhs13.9 million in 2025. Following the addition of 9,900 public parking spaces in the first half, Parkin now estimates that a further 3,500 to 5,000 spaces could be added by year-end.

 WAM