Aramex Q3 2025: Regional Growth Fuels Stability

Aramex PJSC, a prominent logistics and transportation solutions provider based in the UAE, has reported its financial results for the third quarter of 2025. The company has shown resilience and strategic growth in its regional operations, despite facing challenges in the international express segment.

The company reported stable revenues of AED 1.6 billion for Q3 2025, maintaining a steady performance compared to the previous year. This stability is largely attributed to the growth in the domestic express and logistics segments, which rose by 5% and 16% year-on-year, respectively. The freight forwarding segment also saw a 4% increase, indicating robust regional demand and capacity expansion.

However, the international express segment experienced a 9% decline year-on-year, primarily due to the ongoing trend of nearshoring. This shift in supply chain dynamics, where brands are repositioning inventory closer to end markets, has bolstered demand for intraregional logistics activities. Aramex's strategic focus on regional logistics has resulted in the logistics segment becoming its fastest-growing product line, despite being the smallest revenue contributor.

Aramex's profitability also showed positive signs, with normalized earnings before interest and taxes (EBIT) increasing by 9% to AED 74 million. The company's focus on operational efficiency and overhead management has been instrumental in maintaining a stable normalized net profit of AED 27 million for Q3 2025.

The company's transformation program, launched in the first quarter of 2025 as part of its Accelerate28 strategy, is a significant driver of its current and future growth. This program encompasses over 300 initiatives across various workstreams, targeting key regions, products, and functions. The full impact of these initiatives on EBIT is expected to be realized by 2028, positioning Aramex as a leaner and more adaptive organization.

Aramex's strong financial profile, with AED 575 million in cash and a debt to EBITDA ratio of 3.0x, provides a solid foundation for future investments and ongoing transformation activities. This financial stability underscores the company's resilience and strategic foresight.

Given the company's strategic repositioning towards regional logistics and its ongoing transformation efforts, Aramex is well-positioned to capitalize on the growing demand for logistics solutions in the Middle East and beyond. Investors should consider holding their positions in Aramex, as the company's long-term growth prospects appear promising.