Salik Company (SALIK) H1 2025 earnings summary

Executive summary

• Achieved record H1 2025 results with revenue up 39.5% year-on-year and net profit up 41.5% year-on-year, driven by new toll gates, variable pricing, and ancillary revenue growth.

• Operates Dubai's tollgates under a long-term concession, with an asset-light model and strong macroeconomic support.

• Total chargeable trips reached 318.4 million in H1 2025, reflecting robust mobility demand and successful implementation of variable pricing.

• Ancillary revenues expanded through partnerships in parking, insurance, and smart mobility, with inclusion in the MSCI UAE Index.

• Upward revision of FY 2025 guidance, supported by macroeconomic tailwinds and operational enhancements.

Financial highlights

• H1 2025 revenue reached AED 1,527.3 million, up 39.5% year-on-year; Q2 2025 revenue was AED 775.7 million, up 45.6% year-on-year.

• EBITDA for H1 2025 was AED 1,065.0 million, up 44.2% year-on-year, with margin expanding to 69.7%.

• Net profit after tax for H1 2025 was AED 770.9 million, up 41.5% year-on-year, with a net margin of 50.5%.

• Free cash flow for H1 2025 was AED 1.1 billion, up 62.4% year-on-year, with a margin of 72.8%.

• Board proposed a dividend of AED 770.9 million for H1 2025, representing 100% payout of distributable net profit.

Outlook and guidance

• Full-year 2025 revenue growth guidance upgraded to 34%-36%, from previous 28%-29%.

• EBITDA margin guidance raised to 68.5%-69.5%; net profit margin after tax at 49.5%-50.5%.

• 100% of net profit to be distributed as dividends, subject to board and AGM approval.

• Ancillary revenue targets: parking AED 30-50 million (2026), AED 120-150 million (2030); insurance AED 10-20 million (2026), AED 40-60 million (2030).

• Moderate seasonal fluctuations expected, with Q3 typically softer due to lower traffic volumes.