Tabreed's H1 2026: Strong Growth and Cash Flow

National Central Cooling Company PJSC, known as Tabreed, has reported a resilient performance for the first half of 2026, demonstrating robust growth and financial stability. The company, a leader in district cooling solutions across the GCC, announced a 15% year-on-year increase in connected capacity, reaching 1.58 million Refrigeration Tons (RT). This growth is a testament to Tabreed's strategic expansion and its commitment to enhancing infrastructure in the region.

Tabreed's financial results for H1 2026 reveal a revenue increase to AED 1.13 billion, with net operating cash flows soaring by 40% year-on-year to AED 632 million. This financial strength is further underscored by the company's decision to declare interim dividends for the second consecutive year, reflecting confidence in its recurring cash flows and robust financial position.

The company's operational performance remained resilient, supported by fixed capacity charges and ongoing capacity expansion. The completion of various projects contributed to an organic capacity increase of 4,500 RT, while cooling consumption volumes reached one billion refrigeration ton hours (RTh), indicating a strong demand for Tabreed's services despite milder weather conditions.

Dr. Bakheet Al Katheeri, Chairman of Tabreed, emphasized the company's essential role in the UAE's utilities infrastructure, highlighting the vitality of district cooling in the markets served by Tabreed. The recent acquisition of Abu Dhabi's PAL Cooling, in partnership with CVC DIF, and other organic growth initiatives, showcase Tabreed's disciplined approach to investing in high-quality infrastructure assets with long-term cash generation potential.

Looking ahead, Tabreed is poised for continued growth as it integrates recent investments and explores selective growth opportunities. The company's commitment to prudent capital allocation and sustainable long-term returns for shareholders positions it as a compelling investment opportunity in the utilities sector.

In light of Tabreed's strong performance and strategic expansion, investors may consider a buy recommendation, given the company's robust financial health, growth prospects, and commitment to shareholder value.