Emirates Central Cooling Systems (EMPOWER) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered robust financial and operational performance, with revenue up 16.8% year-over-year to AED 631 million and net profit after tax rising 44% to AED 208 million, driven by capacity additions, cost reductions, and strong demand.

• Maintains the world's largest district cooling services capacity, serving approximately 160,000 customers across 1,776 buildings, with a diversified, long-term customer base and strong cash flow visibility.

• Strategic focus on sustainability, innovation, and alignment with UAE's Net Zero 2050 and Dubai's energy strategies.

• The business remains resilient despite regional geopolitical uncertainty, with no expected delays in connecting contracted capacities for 2026 and early 2027.

• Hospitality sector revenue represents 10% of total revenue, with only marginal impact expected from recent travel disruptions.

Financial highlights

• Revenue increased 16.8% year-over-year to AED 631 million, with EBITDA up 21% to AED 358 million and EBITDA margin at 56.8%.

• Net profit after tax was AED 208 million, up 44% year-over-year; net profit before tax reached AED 229 million.

• Gross profit margin for Q1 2026 was 51.1%.

• Operating cash flow reached AED 402 million, supporting strong liquidity; cash and cash equivalents increased to AED 2.45 billion.

• Net debt stood at AED 2.93 billion, with Net Debt/EBITDA at 1.7x.

Outlook and guidance

• Connected capacity guidance for 2026 is 1.76–1.77 million RT, with 66,000–110,000 RT to be added in the remainder of the year; potential upside from accelerated developments.

• EBITDA margin guidance revised upward to 47–48% for the year, reflecting improved efficiency and TSE usage.

• Dividend policy commits to AED 875 million annually for 2025 and 2026, with plans to increase in line with free cash flow growth beyond 2026.

• No major impact expected from regional conflict on capacity connections through first half of 2027; potential impact only if conflict persists into late 2027.

• Expansion strategy includes a new plant in Business Bay, construction to start Q4 2026.