National Central Cooling Company (TABREED) Q1 2026 earnings summary

Executive summary

• Operations remained stable with high availability and strong cash flow performance in Q1 2026, with continued expansion in district cooling capacity.

• District cooling capacity expanded by 245,000 RTs year-over-year, reaching 1.57 million RTs, mainly due to the PAL acquisition; total connected capacity rose 18.4% year-over-year.

• Revenue for Q1 2026 increased 4% year-over-year to AED 486 million, with EBITDA up 1% to AED 285 million and net operating cash flows up 70% to AED 352 million.

• Net profit attributable to equity holders declined 32% year-over-year to AED 78 million, mainly due to higher finance costs and lower JV contributions.

• Total comprehensive income rose to AED 111 million, driven by positive movements in derivatives and FX translation.

Financial highlights

• Revenue grew 4% year-over-year to AED 486 million, supported by organic capacity growth and CPI indexation.

• EBITDA reached AED 285 million, up 1% year-over-year, with a margin of 59%.

• Gross profit increased to AED 242 million, margin at 50%.

• Net profit fell 32% to AED 78 million, mainly due to higher finance costs and lower JV contributions.

• Net operating cash flows surged 70% year-over-year to AED 352 million, with cash and short-term deposits at AED 756 million, up 15% year-to-date.

Outlook and guidance

• Capacity growth for 2026 expected at the lower end of 3%-5% guidance due to project phasing; medium-term guidance reconfirmed at 3%-5% annual capacity growth through 2028.

• EBITDA margin guidance remains at 50%-53%.

• CapEx guidance for organic expansion maintained at AED 200-300 million per year.

• Management does not anticipate material impact from current geopolitical uncertainties but continues to monitor the situation.

• Interim results are not indicative of full-year performance due to seasonality in chilled water demand.