Tabreed, the United Arab Emirates-based district cooling giant, has unveiled its financial results for the first quarter of 2025, showcasing a commendable performance. The company has reported a 4% year-on-year increase in EBITDA, reaching AED 283 million, alongside a 3% rise in net profit after tax to AED 115 million. These figures underscore Tabreed's resilience and strategic prowess in the cooling sector.

One of the most notable developments in Q1 2025 was Tabreed's successful issuance of a USD 700 million Green Sukuk. This move not only attracted significant international investor interest but also allowed the company to refinance its short-term debt into longer maturities, thereby strengthening its balance sheet. The net debt to EBITDA ratio improved to 3.55x, reflecting a solid financial foundation.

Adding to the momentum, Tabreed announced a landmark concession agreement with Dubai Holding Investments to provide district cooling services to the highly anticipated Palm Jebel Ali project. This 250,000 Refrigeration Ton (RT) concession represents a significant expansion of Tabreed's capacity and marks the largest greenfield deal in the company's 27-year history. This strategic venture is set to enhance Tabreed's competitive edge in the dynamic Dubai market.

In addition to these strategic moves, Tabreed's shareholders approved a cash dividend of 15.5 fils per share for 2024, offering an attractive yield of 5.6% based on the share price as of May 12, 2025. This decision reflects the company's commitment to delivering value to its shareholders.

While the company is on an upward trajectory, potential investors should consider the broader economic landscape and industry trends. Given Tabreed's strong financial performance, strategic investments, and solid market position, the recommendation is to hold the stock. This stance allows investors to benefit from potential future growth while monitoring market developments.