TECOM Group (TECOM) Q2 2025 earnings summary

Executive summary

• Achieved strong financial and operational performance in H1 2025, with revenue and EBITDA growth outpacing prior year and IPO guidance.

• Revenue for the six months ended 30 June 2025 was AED 1,389.2 million, up from AED 1,147.8 million year-over-year, reflecting strong growth across all segments.

• Net profit for the period reached AED 737.4 million, a 22% increase compared to AED 603.0 million in the prior year period.

• Maintained high occupancy rates across commercial, industrial, and land leasing segments, reflecting robust market demand.

• Advanced sustainability and ESG initiatives, including increased LEED certifications and clean energy generation.

Financial highlights

• H1 2025 revenue reached AED 1,389 million, up 21% year-over-year; EBITDA rose 24% to AED 1,108 million.

• Net profit for H1 2025 was AED 737 million, a 22% increase year-over-year.

• Gross profit rose to AED 938.7 million from AED 771.4 million year-over-year.

• Cash generated from operations was AED 1,007.0 million, up from AED 903.7 million.

• Portfolio valuation reached AED 28 billion, up 22.1% YoY.

Outlook and guidance

• 2025 revenue growth targeted at 15-17% YoY, with EBITDA expansion of 18-20% YoY.

• Board expects to increase H2 2025 dividend by 10%, reflecting confidence in future cash flows.

• Management expects to recognize AED 46.6 million in revenue from unsatisfied performance obligations over the next two years.

• The Group maintains sufficient headroom to meet all financial covenants and has undrawn borrowing facilities of AED 2.35 billion.

• Positive outlook for Dubai's commercial and industrial real estate markets, supported by strong economic fundamentals.