Abu Dhabi Ship Building reported a net profit before tax of AED7 million ($2 million) for the period ended March 31. This figure increased from AED1 million during the same period in 2025 following the reversal of provisions on received receivables.
Revenues for the first three months of the year reached AED426 million, which is nearly double the AED253 million recorded in the previous year. Much of this growth was attributed to progress on a contract to build three BR71 MKII 71-metre corvettes and logistical support for the Angolan Navy.
Following the signature of a AED7 billion deal with EDGE to supply eight missile boats to the Kuwait Navy, the order book for the firm now stands at more than AED11 billion. The Kuwait programme is projected to make a significant contribution to profitability.
This contract will result in an accounting adjustment that defers some profits from the current year to the second year onwards. The company stated it is projecting a return to recent profit trends this year and expects revenues to more than double those of 2025 as the programme begins delivery.
While regional conflict makes predicting the impact on current year results difficult, the shipbuilder noted that supply chain disruptions could materially affect revenue recognition and profits. Currently, the firm said it is providing support to the UAE Navy and National Guard on other urgent projects.
Progress on the Angolan project included the launch of the first BR71 MKII corvette in March 2026 and the delivery of six interceptor boats. For the UAE Navy, the shipbuilder launched the second of four offshore patrol vessels in February 2026 as part of the FALAJ 3 contract.
The small boat business segment is continuing the construction of 19 search and rescue boats following the delivery of five boats in 2025. During the same period, the maintenance and mission systems segments completed 16 dockings and boat launchings.
The net cash position was AED261 million on March 31 after payments were made to suppliers for the Angola and FALAJ 3 programmes.
Following the end of the quarter, the firm received €75 million ($81 million) for the Angola programme and an advance payment of AED1.45 billion for the Kuwait contract.
