Salik Company (SALIK) H2 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with all key metrics showing significant growth year-over-year, driven by increased trips, new toll gates, and ancillary partnerships.

• Maintained 100% exclusivity as Dubai's sole toll gate operator, with a concession framework extending to 2071.

• Introduced variable pricing and expanded toll network, supporting future revenue streams.

• Expanded ancillary revenue streams, including parking and insurance partnerships, as a second pillar of the business model.

• Maintained robust margins and cash generation, with positive credit ratings assigned.

Financial highlights

• Revenue generating trips reached 498.1 million, up 8% year-over-year, with Q4 trips up 15.8%.

• Gross and total revenue rose 8.7% year-over-year to AED 2.3 billion; Q4 revenue up 15.6%.

• EBITDA grew 13.6% year-over-year to AED 1.58 billion (margin 68.9%); Q4 EBITDA up 26.7% (margin 71.3%).

• Net profit after tax was AED 1.16 billion, up 6.1% year-over-year, despite the introduction of a 9% corporate tax.

• Free cash flow for the year was AED 1.5 billion, with a margin of 63.6%.

Outlook and guidance

• 2025 revenue guidance revised upwards to 28%-29% growth over 2024, driven by new gates, variable pricing, and ancillary streams.

• EBITDA margin expected to remain robust at 68%-69% in 2025; net profit margin before and after tax projected at 54%-55% and 49%-50%, respectively.

• Guidance assumes continued macro strength, ancillary revenue growth, and stable interest rates.

• Continued focus on portfolio diversification and sustainable growth.