National Central Cooling Company (TABREED) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of AED 466 million, with EBITDA up 4% to AED 283 million and net profit rising 3% to AED 115 million, despite lower consumption volumes due to colder weather.

• Expanded capacity through organic growth and a major new JV/concession with Dubai Holding for Palm Jebel Ali, adding 250,000 RT over 30 years.

• Issued inaugural $700 million green sukuk, improving liquidity, refinancing debt, and supporting sustainability projects.

• Maintained strong focus on operational efficiency, sustainability, and shareholder returns.

• Net profit attributable to equity holders rose to AED 115.4 million from AED 112.1 million year-over-year.

Financial highlights

• Q1 2025 revenue reached AED 466 million, stable year-over-year, with a 7% CAGR since 2021.

• EBITDA grew 4% to AED 283 million, with margins expanding to 61%.

• Net profit increased 3% to AED 115 million; net profit CAGR of 7% over four years.

• Free cash flow for Q1 was AED 182 million; 12-month free cash flow yield at 12%.

• Cash balance rose 14% YTD to AED 1,168 million.

Outlook and guidance

• Medium-term capacity growth guidance of 3%-5% per year through 2027 reaffirmed.

• Expect strong uptick in capacity additions in Q2, with two greenfield plants to be completed.

• Organic CapEx expected at AED 200–300 million per year; Q1 CapEx was AED 25 million.

• EBITDA margin guidance maintained at 50%-53%; Q1 LTM margin at 52%.

• Interim results not indicative of full-year performance due to seasonality, with higher revenues expected in summer.