National Central Cooling Company PJSC (Tabreed), a leading player in the district cooling sector, has announced its financial results for the first half of 2025, showcasing a period of robust growth and strategic expansion. The UAE-based company reported a 3% increase in revenue, reaching AED 1.11 billion, primarily driven by heightened cooling demand and significant capacity additions across its key markets.

Tabreed's net profit saw a 2.5% rise, amounting to AED 276 million, supported by strong business growth and healthy EBITDA margins, which improved to 57%. This financial vigor has allowed Tabreed's Board of Directors to propose the company's first-ever interim dividend of 6.5 fils per share, reflecting their confidence in the firm's continued performance and growth trajectory.

The first half of 2025 marked a record capacity addition for Tabreed, with 41.6k Refrigeration Tons (RT) added, nearly doubling the total capacity added in the whole of 2024. This expansion brought Tabreed's total connected capacity to 1.37 million RT, with significant contributions from the UAE and Saudi Arabia. The acquisition of PAL Cooling is set to add over 182k RT, securing a long-term growth pipeline of up to 600k RT across Abu Dhabi.

Tabreed's strategic refinancing has further bolstered its financial position, enabling continued investment in growth while improving leverage and supporting dividend payouts. The company's strong free cash flow positions it well to capitalize on future opportunities and sustain its growth momentum.

Considering the company's strong financial performance, strategic growth initiatives, and the proposed interim dividend, investors might view Tabreed as a stable investment with potential for long-term value creation. However, as with any investment, potential investors should consider market conditions and their own risk tolerance.

In conclusion, Tabreed's impressive growth and strategic actions suggest a positive outlook. Investors may consider holding onto Tabreed shares as the company continues to strengthen its market position and deliver value to shareholders.