Drake & Scull International's H1 2025 Performance: Revenue Soars 57%, Net Profit at AED 6.5 Million
Drake & Scull International (DSI) has released its financial results for the first half of 2025, showcasing a significant revenue increase despite a notable drop in net profit compared to the previous year.
Summary
Drake & Scull International reported a 57% increase in revenue for H1 2025, reaching AED 77.9 million, driven by strong performance in wastewater and water treatment projects. Despite this growth, net profit was AED 6.5 million, significantly lower than the AED 3.8 billion reported in H1 2024 due to restructuring adjustments. The company's financial position remains stable with strong liquidity, although total assets decreased slightly.
Drake & Scull International PJSC (DSI), a prominent player in the contracting services sector, has unveiled its financial performance for the first half of 2025. The company recorded a net profit of AED 6.5 million, a significant decrease from the AED 3.8 billion reported in the first half of 2024, which included substantial restructuring adjustments. However, the revenue for H1 2025 surged by 57% to AED 77.9 million, compared to AED 49.7 million in the same period last year, primarily driven by strong performance in water and wastewater treatment projects across key markets such as India, Tunisia, Romania, and Jordan.
| KPI | H1 2025 | H1 2024 | Change (%) |
|---|---|---|---|
| Revenue | AED 77.9 million | AED 49.7 million | 57% |
| Gross Profit | AED 5.9 million | AED 3.7 million | 59% |
| Net Profit | AED 6.5 million | AED 3.8 billion | -99.8% |
| Total Assets | AED 629.5 million | AED 647.0 million | -2.7% |
| Total Equity | AED 158.4 million | AED 151.7 million | 4.4% |
| Cash and Bank Balances | AED 309.2 million | Not reported | - |
Despite the drop in net profit, DSI's financial health remains stable, backed by a strong liquidity position with cash and bank balances amounting to AED 309.2 million. This liquidity ensures operational flexibility and supports future growth initiatives. The company's total assets witnessed a slight decline of 2.7%, while total equity saw a positive growth of 4.4%.
The financial restructuring undertaken by DSI has played a crucial role in reshaping its financial landscape, allowing the company to offset accumulated losses against the statutory reserve. This strategic move, coupled with effective cost management and project execution, has contributed to the improved gross profit margins.
Looking ahead, Drake & Scull's continued focus on its core businesses, alongside strategic expansions such as its venture into commercial real estate development, positions the company for sustained growth. The recent appointments in the leadership team further reinforce its commitment to strengthening its financial and legal frameworks to support long-term strategic growth.
Conclusion: For investors, the key takeaway from DSI's H1 2025 performance is the robust revenue growth driven by strategic projects in key markets. While the net profit has decreased due to the absence of restructuring benefits seen in the previous year, the company's strong liquidity and strategic initiatives indicate a promising outlook. Investors may consider the company's long-term growth potential and strategic expansions when evaluating their investment decisions.
