National Central Cooling Company PJSC, known as Tabreed, has reported its financial results for the fiscal year ending December 31, 2025. The company recorded revenues of AED 2.46 billion and a net profit of AED 465 million, showcasing its operational resilience and strategic execution in the district cooling sector.

Tabreed's connected capacity surged by 19% year-on-year, reaching 1.57 million Refrigeration Tons (RT). This growth was fueled by both organic expansion and strategic acquisitions, including a significant joint venture acquisition of PAL Cooling. The organic additions alone amounted to 58,200 RT, the highest in the past five years, primarily driven by new connections in the UAE.

The company's strategic acquisitions, including the PAL Cooling acquisition, added 190,800 RT to its capacity. This expansion was complemented by the commissioning of three new greenfield plants and the acquisition of five operational plants, bringing Tabreed's total to 99 operating plants. Despite a slight decline in consumption volumes due to cooler weather, the company maintained high operational efficiency and availability, thanks to investments in innovative technologies.

Financially, Tabreed's revenue increased by 1% year-on-year to AED 2.46 billion, supported by fixed capacity charges. EBITDA also rose by 1% to AED 1.27 billion, with a margin of 51.6%, reflecting the company's operational leverage and efficiency.

The net profit of AED 465 million reflects Tabreed's continued operational strength, despite higher finance costs from refinancing low-cost debt and additional debt for the PAL Cooling investment. The results also include one-off transaction costs related to acquisitions and concessions.

Looking ahead, Tabreed's strategic growth and capacity expansion position it well for future success. The company's focus on innovative technologies and strategic acquisitions suggests a promising outlook. Given the solid financial performance and strategic positioning, investors might consider holding onto their shares as Tabreed continues to expand its footprint in the district cooling sector.