ADNOC Logistics & Services (ADNOCLS) Q2 2025 earnings summary

Executive summary

• Achieved record-breaking H1 2025 results with revenue, EBITDA, and net profit surpassing market expectations, driven by strong performance across all business segments and upgraded full-year guidance.

• Integrated Logistics and Shipping segments delivered significant year-on-year growth, supported by the Navig8 acquisition, value efficiency initiatives, and digital transformation.

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

• Maintained robust financial health with conservative leverage, increased dividend, and substantial CAPEX investment, including a $1.1 billion hybrid equity instrument.

• Major acquisition of an 80% stake in Navig8 Topco Holdings Inc expanded service offerings and international presence.

Financial highlights

• H1 2025 revenue reached $2,439 million, up 40% year-on-year; EBITDA rose 26% to $744 million; net profit was $420 million, up 5% year-on-year.

• Operating free cash flow grew to $604 million, with a margin of 25%.

• Net debt/EBITDA at 0.85x, reflecting strong financial flexibility despite $1.5 billion CAPEX.

• Dividend per share increased 5% year-on-year to AED 0.14, totaling $287 million for 2025.

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

Outlook and guidance

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

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

• $3 billion in additional growth investments planned by 2029, targeting unlevered IRRs in the low double digits.

• Annual dividend per share targeted to grow 5% annually from 2024 base.

• Navig8 acquisition expected to be immediately value-accretive with anticipated cost synergies and expanded global reach.