National Central Cooling Company (TABREED) Q4 2025 earnings summary

Executive summary

• Total connected capacity increased 19% year-over-year to 1.57 million RT, driven by organic growth and the PAL Cooling acquisition, which contributed 190.8k RT.

• Group revenue rose 1% year-over-year to AED 2.46 billion, supported by capacity additions and CPI indexation, despite milder weather impacting consumption volumes.

• EBITDA grew 1.3% to AED 1.27 billion, with a margin of 51.6%; normalized net profit was AED 521 million, reflecting higher finance costs and one-off transaction costs.

• Dividend payout for FY 2025 is 13 fils per share, maintaining a payout ratio above 70% of net income.

• Major strategic transactions included the Palm Jebel Ali concession and PAL Cooling acquisition, expanding the asset base and future growth pipeline.

Financial highlights

• Revenue: AED 2.46 billion (+1% YoY); EBITDA: AED 1.27 billion (+1% YoY); Normalized Net Profit: AED 521 million (-9% YoY).

• EBITDA margin at 51.6% for 2025; gross profit margin stable at 43.9%.

• Net debt/EBITDA increased to 4.6x due to debt-funded acquisitions; balance sheet remains investment-grade.

• Cash and cash equivalents at year-end were AED 655 million, down from AED 1,023 million.

• Total dividend for 2025 proposed at 13 fils per share, representing a payout ratio of ~80% on reported profit and 71% on normalized profit.

Outlook and guidance

• Medium-term annual capacity expansion projected at 3%-5% through 2028, with 20%-30% of growth expected from JVs.

• Annual CapEx guidance maintained at AED 200-300 million, with plans for new greenfield plants and network expansion.

• Dividend payout ratio expected to remain consistent with historical levels (~70%).

• Strong growth pipeline and favorable market conditions in UAE and GCC support long-term sustainable growth.

• Management is monitoring the impact of new UAE corporate tax and international tax reforms, with no immediate material effect expected.