National Central Cooling Company (TABREED) Q4 2024 earnings summary

Executive summary

• Revenue reached AED 2.43 billion in 2024, with like-for-like growth of 4.5% and reported growth of 1%, supported by sustainable district cooling operations and efficiency investments.

• EBITDA grew 5% to AED 1.25 billion, with margin expanding to 51.4%.

• Net profit before tax increased 4% year-over-year; net profit after tax was AED 570 million, up from AED 430 million in 2023.

• International presence expanded, with one-third of new capacity outside the UAE; two new greenfield plants commissioned.

• Achieved Verified Carbon Standard certification, enabling carbon credit generation and trading.

Financial highlights

• Revenue: AED 2,434 million (+1% YoY); EBITDA: AED 1,252 million (+5% YoY); EBITDA margin: 51.4%.

• Net profit before tax: AED 624 million (+4% YoY); net profit after tax: AED 570 million.

• Free cash flow reached AED 971 million; net operating cash flow was AED 1.2 billion.

• Net debt reduced by 6% to AED 4.6 billion; net debt to EBITDA improved to 3.7x, lowest in five years.

• Total assets at year-end were AED 14.1 billion, with total equity of AED 6.96 billion.

Outlook and guidance

• Targeting annual capacity growth of 3%-5% for 2025-2027, driven by signed agreements and new projects.

• Organic capex expected at AED 200-300 million per year; EBITDA margin guidance of 50%-53%.

• No fixed leverage target, but upper limit set to maintain investment-grade credit rating.

• Management expects to refinance significant 2025 debt maturities and continue as a going concern.

• U.A.E. remains the cornerstone of growth, with two-thirds of new capacity additions in 2024 from U.A.E.