Parkin Company (PARKIN) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered record financial results, with revenue and net profit both increasing by 56% year-over-year and EBITDA up 41%, driven by strong operational performance and the introduction of a variable parking tariff.

• For the six months ended 30 June 2025, revenue was AED 585.7 million, up 39.6% year-over-year, and net profit after tax reached AED 284.9 million, a 43.4% increase.

• Added 11.1k new parking spaces, bringing the total to 211.5k, a 6% increase year-over-year.

• The company declared and paid dividends of AED 280.9 million during the period.

• The business is subject to moderate seasonality, with lower activity during summer months.

Financial highlights

• Q2 2025 revenue reached AED 320.0 million (+56% YoY), EBITDA was AED 189.3 million (+41%), and net profit totaled AED 148.4 million (+56%).

• Free cash flow to equity rose to AED 312.0 million, with a 98% cash conversion rate.

• Operating expenses increased to AED 130.6 million, mainly due to higher headcount and marketing costs.

• EBITDA margin declined from 65% to 59% year-over-year due to higher concession fees and staff costs.

• Enforcement revenue grew 77% to AED 96.7 million, and developer parking revenue increased 55% to AED 22.3 million.

Outlook and guidance

• FY 2025 guidance maintained, with revenue expected at the upper end of the previously guided range.

• Public parking segment projected to generate AED 520–550 million in revenue for FY 2025; enforcement revenues anticipated between AED 275–305 million.

• Company targets FY 2025 headcount of approximately 380, reflecting ongoing expansion.

• Management anticipates a revision in the variable concession fee, expected to increase from 20% to up to 27.5% of revenue, effective April 2025.

• Forward-looking statements caution that results may vary due to economic and strategic factors.