ADNOC Logistics & Services (ADNOCLS) Q1 2026 earnings summary

Executive summary

• Q1 2026 net profit rose 20% year-on-year to $222 million, with EBITDA up 7% to $368 million, driven by strong shipping market conditions, higher TCE rates, and disciplined execution, despite revenue declining due to EPC project wind-down.

• Operating free cash flow surged 45% year-on-year to $394 million, supporting a proposed Q1 dividend of $85.3 million, up 5% year-on-year, in line with a progressive dividend policy.

• Upgraded full-year 2026 guidance for revenue, EBITDA, and net profit after just one quarter, reflecting strong operational momentum and market tailwinds.

• Maintained high standards in health, safety, and environment, reporting zero fatalities and significant reductions in incident rates.

• The group remains majority-owned by ADNOC, with a 22% public float after recent share placements.

Financial highlights

• Group revenue was $1.08 billion, down 10% year-on-year due to the wind-down of the G Island EPC project; underlying business revenue grew 7% year-on-year.

• EBITDA margin expanded to 34%, up 5 percentage points year-on-year.

• Net profit reached $222 million (+20% YoY); EPS rose 12% to $0.03 per share.

• Net debt reduced 62% year-on-year to $420 million, with a net debt to EBITDA ratio of 0.28x, providing significant liquidity.

• Operating free cash flow conversion exceeded 100% of EBITDA.

Outlook and guidance

• Upgraded 2026 guidance: EBITDA growth now mid to high single digits, net profit growth mid to high teens, and shipping EBITDA growth mid-to-high 50% year-on-year.

• Revenue guidance improved to a low to mid-single-digit reduction, reflecting better-than-expected performance.

• Dividend for FY2026 expected at $341 million, with a 5% annual increase through 2030.

• Medium-term CAGR guidance of greater than 9% through 2029 is confirmed.

• Guidance is conservative, assuming lower shipping rates and minimum logistics activity; further upside possible if current market conditions persist.