AD Ports Group reports double-digit revenue surge in Q2 2025
The AD Ports Group recently published its financial results for the second quarter and first half of the year ending June 30, 2025.
The AD Ports Group said its continued in the first half of 2025 with double-digit top-line growth recorded in both Q2 and H1 2025, driven by the ports cluster, the economic cities and free zones (EC&FZ) cluster and the maritime and shipping clusters.
The group's revenue surged 15 per cent year-on-year to AED4.83 billion (US$270 million) in Q2 2025, driven by the ports, EC&FZ, and maritime and shipping clusters.
The group's quarterly gross operating profit increased nine per cent YOY to AED1.17 billion (US$320 million), with group gross operating profit margin standing at 24.2 per cent in Q2 2025.
Profit before tax reached AED519 million (US$141 million), up five per cent YOY, primarily due to the effect of higher depreciation and amortisation charges and finance costs while total net profit was relatively flat at AED445 million (US$121 million) because of higher income tax.
Earnings per share for the quarter stood at AED0.07 (US$0.02), flat YOY.
With a marginal increase in net debt and a continued strong liquidity position, net debt/gross operating profit has been relatively stable for the past three quarters at 4.1x, but improved significantly YOY from 4.9x in Q2 2024.
Capex in Q2 2025 reached AED928 million (US$253 million), with majority of cash outlays going into maritime and shipping, EC&FZ, and ports assets. Capex intensity continued to decline, reaching 19 per cent of group revenue in Q2 2025, versus 28 per cent in Q2 2024.
The AD Ports Group said that, given the strong operating profit performance and with a cash conversion of 97 per cent for the quarter, operating cash flow reached AED1.14 billion (US$310 million) in Q2 2025, almost doubling from the same period a year earlier. As a result, free cash flow to the firm was positive for the quarter and year-to-date.
"The holistic core of [the] AD Ports Group’s five-cluster business model delivered sustainable growth for its shareholders once again in a challenging macroeconomic and geopolitical environment, as strong results from our ports, economic cities and free zones, and maritime and shipping clusters drove Q2 gains in overall group revenue and operating profit," said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of the AD Ports Group.
"As global cargo flows continued to shift against a backdrop of regional conflicts and tariff volatility, the strategic flexibility of [the] AD Ports Group's synergistic business structure kept our value-enhancing international expansion on course, allowing us to mitigate adverse external factors, while capitalising on opportunities in dynamic regions such as the Red Sea, and along emerging alternative trade corridors we are developing such as in Central Asia."
Al Shamisi said that reduced geopolitical and macroeconomic visibility is expected to continue in the second half of the year, but so will the long-term profitable nature of the AD Ports Group's internationalisation.
In line with the vision of the group's leadership, and despite all temporary obstacles, internationalisation is positioning the AD Ports Group, "as a leader in sustainable trade, transport, logistics, and economic development," said Al Shamisi.
