Salik Company (SALIK) Q2 2026 earnings summary

Executive summary

• Maintained resilient financial performance in H1 2026, with revenue of AED 1,412.0 million (down 7.5% year-over-year) and strong profitability margins despite macroeconomic and geopolitical headwinds.

• Net profit for H1 2026 was AED 704.0 million, down 8.7% year-over-year, with a margin of 49.9%.

• EBITDA for H1 2026 was AED 975.6 million, down 8.4% year-over-year, with a margin of 69.1%.

• Encouraging recovery in traffic and mobility trends observed in Q2 2026, with June volumes nearing normal levels.

• Expanded ancillary services portfolio through strategic agreements and partnerships in parking, access control, insurance, and EV charging.

Financial highlights

• H1 2026 revenue was AED 1,412.0 million, down 7.5% year-over-year; Q2 revenue was AED 683.1 million, down 11.9%.

• H1 2026 EBITDA was AED 975.6 million (margin 69.1%), down 8.4% year-over-year; net profit was AED 704.0 million (margin 49.9%), down 8.7%.

• Free cash flow for H1 2026 was AED 551.0 million (margin 39%), impacted by working capital timing, VAT settlements, and concession fee payments.

• Toll usage fees contributed 85.2% of revenue; fines 10.2%; tag activation and ancillary streams 4.6%.

• Net debt as of June 30, 2026, stood at AED 5,038.6 million; net debt/EBITDA at 2.45x, well below covenant threshold.

Outlook and guidance

• FY 2026 revenue growth guidance revised to -3% to 0% due to regional events; EBITDA margin guidance at 67.5%-68.5%; post-tax net profit margin at 49.5%-50.5%.

• Traffic volumes expected to normalize during Q3 2026, with gradual recovery anticipated.

• Dividend policy maintained at 100% of net profit, with payout expected before end of October.

• Management expects to refinance or replace existing borrowings before maturity in June 2027.