Aramex Sees Stable Revenue Amid Regional Growth
Aramex PJSC reports stable revenue growth in H1 2025, driven by regional logistics demand.
Summary
Aramex PJSC reported stable revenue growth in H1 2025, supported by increased demand for regional logistics solutions. Despite a decline in international express revenue, domestic and logistics growth helped stabilize overall performance. The company is undergoing strategic transformation under the Accelerate28 program and recently became a subsidiary of ADQ.
Aramex PJSC, a leading logistics and transportation solutions provider based in the UAE, has reported stable revenue growth for the first half of 2025, with total revenues reaching AED 3.06 billion. This marks a 1% year-over-year increase, driven by a significant shift towards regional logistics solutions. As brands increasingly focus on proximity to end consumers, Aramex has capitalized on this trend by expanding its domestic and regional operations.
In H1 2025, Aramex experienced a notable 13% year-over-year increase in domestic revenues and a 22% rise in logistics revenues. However, the company faced challenges in its international express business, which saw a 15% decline in revenue. This shift in product mix resulted in a recalibration of the company's profitability profile, with a gross profit margin of 23% and a 6% decline in gross profit year-over-year.
Despite these challenges, Aramex remains optimistic about its future. The company has launched the Accelerate28 transformation program, aimed at restructuring its operations and capturing value through strategic initiatives. The program is still in its early stages but is progressing well, with a focus on protecting the bottom line while investing in strategic areas.
Additionally, Aramex has recently become a subsidiary of ADQ, following the successful acquisition of 63% of its shares. This partnership is expected to open new doors for innovation, scale, and growth, further enhancing Aramex's position in the logistics industry.
Given the company's strategic initiatives and regional growth potential, investors may consider holding Aramex shares. The company's focus on regional logistics and its recent acquisition by ADQ provide a solid foundation for future growth, despite current profitability pressures.
Source
Summary
Aramex reported stable group revenues of AED 3.06 billion for the first half of 2025, with a 1% year-over-year increase. The company experienced growth in domestic and logistics revenue, up 13% and 22% respectively, while international express revenue declined by 15%. The shift towards regional logistics solutions is attributed to increased demand for proximity to consumers. Despite stable revenues, profitability was under pressure due to a decline in high-margin international express contributions, resulting in a 6% decrease in gross profit. One-off expenses related to acquisitions and restructuring further impacted earnings, with normalized EBIT and net income showing significant declines. The company is implementing the Accelerate28 transformation program to adapt to industry changes. Additionally, Aramex became a subsidiary of ADQ following a 63% share acquisition, which is expected to foster innovation and growth.
