Aramex PJSC, a prominent logistics and transportation solutions provider based in the UAE, has released its financial results for the year 2025, showcasing a period of stable revenue growth and significant logistics momentum. Despite a challenging global economic landscape, the company managed to achieve a 1% year-over-year increase in revenues, reaching AED 6.36 billion. This growth was primarily driven by strong performances in Domestic Express, Freight Forwarding, and Logistics, reflecting sustained demand amid global trade realignment.

Notably, December 2025 marked a historic high in monthly revenue for Aramex, underscoring the strength of peak season demand and robust execution across key markets. This achievement is a testament to the company's ability to adapt to shifting market dynamics and capitalize on growth opportunities.

However, the financial results also highlight some challenges. The company's gross profit declined year-over-year, with a notable impact on margins due to changes in the revenue mix and pricing pressures in select markets. Inflationary cost pressures and infrastructure investments further affected Domestic Express margins, while Freight margins remained flat.

Despite these margin pressures, Aramex's logistics segment emerged as a standout performer, recording an impressive 18% revenue growth year-over-year. This growth was fueled by strong contract wins, high warehouse utilization, and expanded regional capacity. The logistics segment continues to be a core pillar of Aramex's transformation strategy, contributing to enhanced profitability.

Under the Accelerate28 strategy, Aramex has been implementing over 300 initiatives across various functions and geographies. The full year of implementation in 2025 has already shown promising results in operational efficiency and logistics profitability, setting the stage for future growth.

Looking ahead to 2026, Aramex plans to maintain its strategic focus on unlocking value through a product-led approach, continued margin optimization, and targeted investments in automation and infrastructure. With a new Group CEO set to join in 2026, the company aims to build on the stability achieved in 2025 and continue its transformation journey.

For investors, the current financial performance and strategic direction suggest a cautious approach. While Aramex has demonstrated resilience and growth potential, the margin pressures and market challenges warrant a 'hold' recommendation. Investors should closely monitor the company's progress in executing its transformation strategy and adapting to evolving market conditions before making significant investment decisions.