Tabreed Reports Solid Growth Amid Strategic Moves
National Central Cooling Company PJSC, known as Tabreed, showcases robust growth in its latest financial results, driven by strategic expansions and acquisitions.
Summary
Tabreed's latest financial results reveal a 1% revenue increase, strategic acquisitions, and a significant capacity growth, solidifying its position in the cooling industry.
National Central Cooling Company PJSC, widely recognized as Tabreed, has recently published its financial results for the first nine months of 2025, highlighting a remarkable period of growth and strategic development. With a 1% increase in revenue year-on-year, reaching AED 1.87 billion, Tabreed continues to fortify its standing as a leader in the district cooling industry.
One of the most striking achievements for Tabreed this year is the record organic capacity addition of 52.9k Refrigeration Tons (RT), which is more than double the total capacity added in the entirety of 2024. This expansion is a testament to the company's aggressive pursuit of growth, with 29.1k RT of new connections established in the UAE and 23.8k RT in other markets. The total connected capacity has risen by 4.5% year-on-year, reaching 1.38 million RT as of September 30, 2025.
Tabreed's strategic acquisitions have also played a pivotal role in its growth trajectory. The acquisition of PAL Cooling and the finalization of the Palm Jebel Ali concession are transformational deals that not only secure portfolio growth but also enhance Tabreed's operational footprint across the region. These moves underscore Tabreed's commitment to expanding its influence and capabilities in the district cooling sector.
The company's financial health remains robust, with EBITDA increasing by 5% year-on-year to AED 975 million, supported by cost discipline and efficiency improvements. The EBITDA margin has expanded to 52.2%, reflecting the company's successful management strategies and operational efficiencies.
Despite the positive growth metrics, net profit saw a slight decrease to AED 420 million, compared to AED 425 million in the same period last year. This decrease is primarily attributed to higher finance costs associated with the recent Green Sukuk issuance, which refinanced bank debt from the low-rate environment of 2020. However, when excluding these higher finance costs and other one-off items, the adjusted net profit would have seen a 5% year-on-year increase, driven by the underlying growth in EBITDA.
Tabreed has also achieved a significant milestone by being included in the Emerging Markets Small Cap Index, effective November 24, 2025. This inclusion highlights Tabreed's growing visibility and appeal among global investors, further enhancing its reputation on the international stage.
For investors, Tabreed's first-ever interim dividend of 6.5 fils per share, amounting to AED 184.9 million, approved for the first half of 2025, is a noteworthy development. This move reflects the company's confidence in its financial stability and commitment to returning value to its shareholders.
In conclusion, Tabreed's strategic growth initiatives, coupled with its solid financial performance, make it a compelling prospect for investors. While the slight dip in net profit may raise some concerns, the company's overall trajectory and strategic positioning suggest a promising future. Therefore, the current recommendation is to hold the instrument and monitor future developments closely.
Source
Summary
Tabreed reported a revenue of AED 1.87 billion for the first nine months of 2025, with a 4.5% increase in total connected capacity year-on-year. The company achieved a record organic capacity addition of 52.9k Refrigeration Tons (RT), more than double the total in 2024, driven by new connections in the UAE and other markets. Revenue rose by 1% year-on-year, supported by fixed capacity revenue and long-term agreements, despite milder weather. EBITDA increased by 5% to AED 975 million, with a margin of 52.2%, due to cost discipline and efficiency improvements. The company finalized the acquisition of PAL Cooling and the Palm Jebel Ali concession, securing portfolio growth. Tabreed was included in the Emerging Markets Small Cap Index, reflecting its growing visibility among global investors. An interim dividend of 6.5 fils per share, totaling AED 184.9 million, was approved for the first half of 2025. Net profit was AED 420 million, slightly down from AED 425 million the previous year, mainly due to higher finance costs from a recent Green Sukuk issuance. Excluding these costs, the adjusted net profit would have increased by approximately 5% year-on-year.
