ADNOC Logistics & Services (ADNOCLS) Q2 2025 earnings summary

Executive summary

• Delivered record-breaking H1 2025 results with revenue up 40% YoY to $2,439 million, EBITDA up 26% to $744 million, and net profit up 5% to $420 million, surpassing market expectations across all business segments.

• Major acquisition of Navig8 expanded international reach, contributing $649 million in revenue and $30 million in net profit post-acquisition.

• Advanced digital transformation with AI-driven logistics, SmartPort digitalization, and safety improvements.

• Secured a 15-year, $531 million contract with Borouge, enhancing revenue visibility and supporting UAE industrialization.

• Issued a $1.1 billion hybrid equity instrument, providing significant new capital.

Financial highlights

• H1 2025 revenue reached $2,439 million, up 40% YoY; EBITDA rose 26% to $744 million with a 30% margin; net profit was $420 million, up 5% YoY and 18% over H2 2024.

• Q2 2025 revenue was $1,258 million (+40% YoY), EBITDA $400 million (+31% YoY), net profit $236 million (+14% YoY).

• Operating free cash flow for H1 2025 was $604 million, up 13% YoY.

• Cash and cash equivalents at 30 June 2025 stood at $498.9 million, up from $198.9 million at year-end 2024.

• Basic and diluted EPS for H1 2025 was $0.06, up from $0.05 in H1 2024.

Outlook and guidance

• Upgraded 2025 guidance: high 20% revenue growth, mid-20% EBITDA growth, and low to mid double-digit net income growth YoY.

• Medium-term (2026–2029) guidance: low single-digit revenue growth, mid to high single-digit EBITDA and net profit CAGR.

• $3 billion in additional growth investments planned, not yet reflected in current guidance.

• Dividend for FY2025 set to increase by 5% to $287 million, with annual progression targeted.

• No material top-up tax expected under OECD Pillar Two for H1 2025.