National Central Cooling Company (TABREED) Q2 2026 earnings summary

Executive summary

• Connected capacity grew 15% year-over-year to 1.58 million RT, mainly from the PAL Cooling acquisition and organic growth in the UAE.

• Revenue for H1 2026 increased 2% year-over-year to AED 1.13 billion, supported by higher fixed capacity charges and value chain business, despite a decline in consumption volumes.

• EBITDA reached AED 615 million, down 2% year-over-year, with a margin of 54.6%-55%.

• Net operating cash flow surged 40% year-over-year to AED 632 million, reflecting improved cash conversion and working capital management.

• Interim dividend of 5 fils per share approved, reflecting a 73% payout ratio of normalized net profit.

Financial highlights

• Revenue: AED 1,128 million (+2% YoY); EBITDA: AED 615 million (-2% YoY); Net profit: AED 192 million (-30% YoY).

• Gross profit margin declined to 46.8% from 47.9% YoY; EBITDA margin at 54.6%-55%.

• Net operating cash flows increased 40% YoY to AED 632 million; cash conversion ratio at 103%.

• Net debt/EBITDA improved to 4.57x at period end, within investment-grade parameters.

• Free cash flow reached AED 467 million after CapEx and dividends.

Outlook and guidance

• Connected capacity growth for 2026 revised to ~1% due to project phasing, with medium-term growth guidance of 3%-5% annually for 2027-2028.

• EBITDA margin guidance updated to around 50%-55% going forward, reflecting inflationary pressures.

• CapEx guidance unchanged at AED 200-300 million per year; future updates possible if new projects arise.

• Long-term growth outlook remains positive, underpinned by a strong pipeline and secured customer agreements.

• Management does not anticipate material impact from current geopolitical uncertainties but continues to monitor the situation.