ADNOC Logistics & Services (ADNOCLS) Q1 2026 earnings summary

Executive summary

• Achieved 20% year-on-year net profit growth in Q1 2026 to $222 million, with EBITDA up 7% to $368 million, driven by strong shipping market conditions and disciplined execution.

• Revenue for Q1 2026 was $1.08 billion, down 8–10% year-on-year due to the wind-down of major EPC projects, but underlying business revenue grew 7% year-on-year.

• Upgraded full-year 2026 guidance for revenue, EBITDA, and net profit after just one quarter, reflecting strong operational momentum and market tailwinds.

• Proposed a Q1 dividend of $85.3 million, up 5% year-on-year, in line with a progressive dividend policy.

• Maintained a strong balance sheet with net debt to EBITDA at 0.28x and $695 million in cash, supporting growth and shareholder returns.

Financial highlights

• Group revenue was $1.08 billion, down 8–10% year-on-year due to EPC project wind-down; underlying business revenue grew 7% year-on-year.

• EBITDA increased 7% year-on-year to $368 million, with margins expanding to 34% (+5pp YoY).

• Net profit reached $222 million (+20% YoY); EPS up 12% to $0.03 per share.

• Operating free cash flow increased 45% year-on-year to $394–395 million, exceeding EBITDA.

• Net debt reduced 62% year-on-year to $420 million; cash position at $695 million.

Outlook and guidance

• Upgraded 2026 guidance: EBITDA now expected to grow mid-to-high single digits, net profit mid-to-high teens, and shipping EBITDA mid-to-high 50% year-on-year.

• Revenue guidance narrowed to a low-to-mid single-digit reduction, reflecting better-than-expected performance.

• Dividend for FY2026 expected at $341 million, with a 5% annual increase through 2030.

• Integrated logistics guidance set conservatively at minimum activity levels due to regional uncertainty, with potential upside if conditions normalize.

• Medium-term CAGR for EBITDA confirmed at greater than 9% through 2029.