National Central Cooling Company (TABREED) Q2 2025 earnings summary

Executive summary

• Achieved record organic capacity additions in H1 2025, nearly doubling 2024's full-year additions, with 41,600 RT of new connections driven by three new greenfield plants in the U.A.E. and Saudi Arabia.

• Group revenue rose 3% year-over-year to AED 1.1 billion in H1 2025, with Q2 revenue growth accelerating to 5% year-over-year.

• EBITDA increased by 5% to AED 632 million in H1, with margins improving to 57% due to scale benefits and cost controls.

• Announced acquisition of PAL Cooling Holding via a 50/50 JV, expanding capacity and market share in Abu Dhabi and diversifying the customer base.

• Proposed the first interim dividend in company history, reflecting strong performance and outlook.

Financial highlights

• Revenue for H1 2025 reached AED 1,109 million, up 3% year-over-year; Q2 revenue up 5% year-over-year.

• EBITDA grew 5% to AED 632 million, with margin at 57%.

• Net profit increased 2.5% to AED 276 million, with net profit margin stable at 24.9%.

• Free cash flows totaled AED 973 million over the last 12 months, up 3% year-over-year.

• Interim dividend of AED 0.065 per share proposed, first in company history.

Outlook and guidance

• Medium-term guidance targets 3–5% annual organic capacity growth and 50–53% EBITDA margin through 2027.

• Organic CapEx expected at AED 200–300 million annually; H1 investment at AED 66 million, expected to ramp up.

• Net debt to EBITDA expected to rise to 4.5x post-PAL acquisition, but remain within investment-grade criteria.

• Commitment to maintaining investment grade credit rating.