Aramex PJSC 2025 Financial Performance: Transformation Gains Traction Amidst Stable Revenues
Summary
Aramex PJSC's 2025 financial performance was marked by stable revenue growth and significant strides in its transformation efforts. The company achieved a 1% increase in annual revenues, reaching AED 6.36 billion, with logistics emerging as a key growth driver. Despite challenges in profitability, Aramex maintained a robust financial position and remains focused on strategic investments and operational efficiency.Aramex PJSC 2025 Financial Performance: Transformation Gains Traction Amidst Stable Revenues
Aramex PJSC (DFM: ARMX), a leading global provider of comprehensive logistics and transportation solutions, has announced its financial results for the year ending December 31, 2025. The company reported stable revenue growth and significant progress in its transformation strategy, despite facing challenges in profitability.
Key Performance Indicators
| KPI | 2025 | 2024 | % Change (YoY) |
|---|---|---|---|
| Revenues (AED '000) | 6,359,946 | 6,324,444 | 1% |
| Gross Profit (AED '000) | 1,449,468 | 1,512,203 | -4% |
| EBIT (AED '000) | 192,711 | 296,675 | -35% |
| EBITDA (AED '000) | 568,948 | 650,304 | -13% |
| Net Profit (AED '000) | 20,582 | 141,811 | -85% |
| Debt-to-EBITDA Ratio | 3.2x | 2.9x | 10% |
Analysis of Financial Performance
The company's revenues increased by 1% year-over-year, reaching AED 6.36 billion in 2025. This growth was driven by strong performance in the logistics segment, which recorded an 18% revenue increase, supported by new contract wins and high warehouse utilization. However, Aramex faced challenges in profitability, with gross profit declining by 4% and net profit dropping significantly by 85% due to changes in revenue mix and inflationary cost pressures.
Transformation and Strategic Initiatives
Under the Accelerate28 strategy, Aramex has undertaken over 300 initiatives aimed at enhancing operational efficiency and logistics profitability. The company maintained a robust financial position with a cash balance of AED 573 million and a debt-to-EBITDA ratio of 3.2x. Looking ahead, Aramex remains focused on unlocking value through a product-led approach, margin optimization, and targeted investments in automation and infrastructure.
Conclusion for Investors
Despite facing challenges in profitability, Aramex's stable revenue growth and transformation progress indicate resilience and a commitment to long-term strategic goals. Investors should consider the company's strong logistics performance and strategic initiatives as positive indicators for future growth, while also being mindful of the current profitability pressures and debt levels.
