National Central Cooling Company (TABREED) Q3 2025 earnings summary

Executive summary

• Achieved record organic capacity additions of 52.9k RT in 9M 2025, nearly double the prior year, bringing total connected capacity to 1.38 million RT and reinforcing leadership in district cooling.

• Completed two major transactions: PAL Cooling acquisition and Palm Jebel Ali concession, significantly expanding market position and future revenue visibility.

• Approved and distributed the first interim dividend of 6.5 fils per share, marking a milestone in shareholder returns and reflecting confidence in long-term value creation.

• Revenue for the nine months ended 30 September 2025 reached AED 1,867.4 million, up 1.3% year-over-year, with net profit attributable to equity holders at AED 419.9 million, slightly down from AED 425.2 million in the prior year.

• Total comprehensive income attributable to equity holders was AED 380.0 million, reflecting negative movements in foreign currency translation and cash flow hedge reserves.

Financial highlights

• Group revenue rose 1% YoY to AED 1.87 billion, driven by capacity additions in the UAE.

• EBITDA increased 5% YoY to AED 975 million, with margin improving to 52.2%.

• Net profit declined slightly YoY due to higher finance costs and one-off losses, with normalized net profit at AED 425 million and reported net profit at AED 420 million.

• Free cash flow (excluding PAL Cooling advance) reached AED 965 million, yielding over 10%; cash and short-term deposits stood at AED 666 million, down 11% YoY.

• Net debt to EBITDA increased to 4.5x, reflecting acquisition funding and investment activity.

Outlook and guidance

• Medium-term guidance unchanged: annualized capacity growth of 3%-5% through 2027, with organic CapEx of AED 200–300 million per year.

• EBITDA margin guidance maintained at 50%-53%; current margin at 52.7%.

• Management notes interim results are subject to seasonality, with higher revenues in summer months.

• PAL Cooling's future capacity growth to be included in full-year results.

• No material exposure to Pillar Two income taxes in jurisdictions where legislation is not yet enacted.