Tabreed Posts Modest Growth in Revenue and EBITDA Amidst Strategic Expansion in 2025
National Central Cooling Company PJSC (Tabreed) has released its financial results for the first nine months of 2025, reflecting continued growth in capacity and strategic acquisitions.
Summary
Tabreed's financial performance for the first nine months of 2025 shows a modest increase in revenue and EBITDA, driven by strategic acquisitions and capacity growth. Despite higher finance costs impacting net profit, the company maintains a strong operational performance with stable consumption volumes and a growing portfolio.
Tabreed's Financial Performance: A Comparative Analysis
National Central Cooling Company PJSC, commonly known as Tabreed, has announced its financial results for the nine-month period ending September 30, 2025. The company reported a year-on-year revenue increase of 1%, amounting to AED 1.87 billion. This growth is primarily attributed to the expansion of its connected capacity by 4.5% year-on-year, reaching 1.38 million Refrigeration Tons (RT).
Key Financial Indicators
| KPI | 9M 2025 | 9M 2024 | Change |
|---|---|---|---|
| Revenue | AED 1.87 billion | AED 1.85 billion | +1% |
| EBITDA | AED 975 million | AED 933 million | +5% |
| Net Income | AED 420 million | AED 425 million | -1.2% |
| EBITDA Margin | 52.2% | 50.4% | +3.6% |
| Debt Ratio | Not disclosed | Not disclosed | N/A |
| Interest Coverage Ratio | Not disclosed | Not disclosed | N/A |
Analysis of Financial Performance
Tabreed's revenue growth is supported by strategic acquisitions, including the PAL Cooling acquisition and the Palm Jebel Ali concession, which have significantly expanded its capacity. The company's EBITDA increased by 5% year-on-year, reaching AED 975 million, reflecting operational efficiency and cost discipline. However, net profit decreased slightly to AED 420 million, primarily due to higher finance costs associated with the recent Green Sukuk issuance.
Strategic Developments and Market Position
Tabreed's inclusion in the MSCI Emerging Markets Small Cap Index highlights its growing visibility among global investors. The company has also achieved its first-ever interim dividend of 6.5 fils per share, underscoring its commitment to shareholder returns. The strategic acquisitions and capacity growth reinforce Tabreed's position as a leading district cooling provider in the region.
Conclusion
Despite the challenges posed by increased finance costs, Tabreed's operational performance remains robust, with stable consumption volumes and strategic expansions supporting its growth trajectory. The company's focus on efficiency and disciplined financial management positions it well for future growth. Investors may consider the company's strong market position and strategic initiatives when evaluating investment decisions.
