Emirates Central Cooling Systems (EMPOWER) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with revenue up 4.5% year-over-year to AED 1,519.4 million and net profit before tax up 16.1% to AED 514 million, despite regional geopolitical tensions and softer hospitality demand.

• Achieved milestone of over two million refrigeration tons of contracted capacity and increased connected capacity to 1.71 million refrigeration tons, supporting future growth.

• Maintained robust cash conversion and a strong balance sheet, with continued investment in network expansion and operational efficiency.

• Major shareholder change: EPI transferred its stake to DEWA, increasing DEWA's holding to 80%.

• Supported Dubai's energy strategy and sustainability goals, contributing to increased district cooling penetration.

Financial highlights

• H1 2026 revenue reached AED 1,519.4 million, up 4.5% year-over-year; EBITDA rose 7.5% to AED 773 million; profit before tax increased 16.1% to AED 514 million.

• Net profit after tax for H1 2026 was AED 468 million; operating profit rose 9.4% to AED 580.8 million.

• EBITDA margin for H1 2026 was 50.9%; Q2 EBITDA margin at 46.7%.

• Net debt stood at AED 2,991 million, with net debt to EBITDA at 1.8x.

• Cash and cash equivalents increased to AED 2,472 million as of June 2026.

Outlook and guidance

• Expect consumption revenue to rebound in H2 2026, especially as weather conditions favor higher demand and hospitality occupancy improves.

• Guidance for 2026 and 2027 CapEx remains AED 450–500 million per year, with capacity additions of 90,000–110,000 tons in 2027.

• Connected capacity forecasted to reach 1.76–1.77 million refrigeration tons by year-end, with 49,000–59,000 tons to be added in H2.

• Dividend policy updated to AED 875 million per year for 2025 and 2026; 2027 policy to be announced with Q3 results.

• No interim dividend declared for the six-month period.