AD Ports Group delivered fiscal year 2025 results on Friday that outpaced company consensus across multiple headline measures, with both EBITDA and net profit coming in roughly 5-6% ahead of expectations. The Abu Dhabi-based operator recorded particularly strong fourth-quarter numbers that underpinned the annual outperformance.
Fourth-quarter EBITDA reached AED 1,557 million, a 24% margin over the company consensus of AED 1,254 million. Net profit for the quarter was AED 471 million, 15% above the AED 408 million expected by the company consensus. Revenue in the period amounted to AED 5,946 million, surpassing consensus by 10%.
The Maritime division was the most prominent contributor to the upside in Q4, reporting EBITDA of AED 854 million - 52% higher than consensus expectations - with the result noted as benefiting from higher levels of capital expenditure. The Economic Cities & Free Zones division also outperformed, posting Q4 EBITDA of AED 527 million, which exceeded consensus by 37%.
Cash generation strengthened in the quarter. Cash flow from operations rose to AED 2.45 billion in Q4, substantially ahead of analyst expectations of AED 1.06 billion. The company recorded positive free cash flow for the first time, although this was achieved while capital expenditure remained elevated at AED 1.98 billion - roughly AED 1 billion above forecasts.
On leverage and balance-sheet metrics, AD Ports reported a reduction in leverage to 4.1x from 4.4x in the prior quarter. Net debt stood at AED 20.64 billion, a figure that was about AED 1 billion higher than analyst estimates.
In coverage following the results, Jefferies kept its buy rating on AD Ports and maintained a price target of AED 7.00, which implies roughly 37% upside from the prevailing share price of AED 5.11.
Contextual notes
- Results were driven by broad-based division-level growth, with the Maritime and Economic Cities & Free Zones units particularly notable for their Q4 contribution.
- Operational cash flow improved markedly, enabling the group to report positive free cash flow for the first time despite higher-than-expected capital spending.
- Balance-sheet metrics show modest improvement in leverage quarter-over-quarter, though net debt exceeded analyst expectations.
The company-provided figures and analyst comparisons above reflect the results as reported for fiscal year 2025 and the fourth quarter within that period.