Salik Company (SALIK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose to AED 751.6 million, up 33.7% year-on-year, with net profit after tax increasing to AED 370.6 million, driven by two new toll gates and variable pricing.

• Maintained 100% exclusivity as Dubai's sole toll gate operator, leveraging an asset-light model and expanding ancillary revenue streams through partnerships in parking, insurance, and smart payment solutions.

• Total chargeable trips reached 158 million, up 35.1% year-on-year, reflecting strong mobility demand and operational expansion.

• Board approved a dividend of AED 619.8 million for H2 2024, reflecting 100% of distributable net profit.

• Benefited from Dubai's robust macroeconomic environment, with strong tourism, real estate activity, and government initiatives supporting mobility demand.

Financial highlights

• Revenue grew 33.7% year-on-year to AED 751.6 million in Q1 2025; EBITDA reached AED 519.6 million (margin 69.1%), and net profit after tax was AED 370.6 million (margin 49.3%).

• Free cash flow totaled AED 626.7 million, up 77.8% year-on-year, with a margin of 83.4%.

• Toll usage fees comprised 88.6% of revenue, fines 9.1%, and other streams 2.3%.

• Net debt decreased to AED 4.7 billion, with a net debt-to-EBITDA ratio of 2.7x.

• Cash and equivalents at period end were AED 1.5 billion.

Outlook and guidance

• 2025 revenue expected to increase 28%-29% over 2024, with an EBITDA margin of 68%-69% and net profit margin after tax of 49%-50%.

• Parking payment solutions projected to generate AED 30-50 million in 2026 and AED 120-150 million in 2030; data monetization revenue expected at AED 10-20 million in 2026 and AED 40-60 million in 2030.

• Dividend policy targets 100% payout of net profit, with AED 1,164.5 million distributed for FY 2024.

• Guidance may be revised after further data on variable pricing and new gates is available.

• Moderate seasonal fluctuations expected, with lower revenue and earnings during summer months.