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.