Today's Edition
ABU DHABI (ALETIHAD)
Abu Dhabi Aviation reported a 22.9% increase in revenue to Dh6.82 billion for the nine months ended September 30, 2026, driven by higher demand for aircraft maintenance and defence-related services.
Net profit fell 24.9% to Dh524.8 million, and the net profit margin narrowed to 7.7% from 12.6% a year earlier.
Gross profit fell 6.9% to Dh915 million, with the gross margin narrowing to 13.4% from 17.7%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 15% to Dh620 million, and the EBITDA margin declined to 9.1% from 13.1%. Excluding fair value movements, adjusted EBITDA fell 5.1% to Dh655 million. The group recorded a Dh35.7 million fair value loss, compared with a Dh37.9 million gain a year earlier.
Profit before tax fell 24% to Dh573.2 million, while profit attributable to owners fell 33.7% to Dh375.2 million. Earnings per share declined to Dh0.342 from Dh0.516.
Revenue from maintenance, repair and overhaul (MRO) rose 24.3% to Dh6.02 billion, accounting for 88.3% of group revenue. The segment reported net profit of Dh419 million. A non-recurring settlement recognised by AMMROC on a legacy contract contributed Dh364 million to group revenue, Dh112 million to EBITDA and Dh102 million to net profit. General aviation revenue rose 9.6% to Dh838 million, supported by higher cargo activity at Maximus Air. The segment reported net profit of Dh112 million.
At September 30, the group had Dh1.76 billion in cash and cash equivalents and Dh993 million in borrowings, leaving it with net cash of Dh769 million. Debt was 0.9 times EBITDA for the preceding 12 months, excluding leases. Total assets stood at Dh15.12 billion and total equity at Dh8.98 billion, compared with Dh15.45 billion and Dh9.04 billion, respectively, at the end of 2025.
Operating activities used Dh1.19 billion in cash, compared with an inflow of Dh8 million a year earlier. The group said working capital absorbed Dh1.72 billion as contracted activity expanded and billing and certification took time. Investing activities generated Dh535 million, mainly from the disposal and maturity of financial assets, while financing activities used Dh690 million. Capital expenditure fell to Dh91 million from Dh271 million.
Abu Dhabi Aviation continued to sell non-core real estate and equity investments, with assets held for sale declining to Dh515 million from Dh674 million at the end of June. Shareholders approved a Dh329 million cash dividend for 2025 in March, equivalent to Dh0.30 per share.
Third-quarter revenue rose 12.7% year on year to Dh2.16 billion, with growth in both operating segments. MRO revenue increased to Dh1.84 billion from Dh1.64 billion, while general aviation revenue rose to Dh328 million from Dh291 million. The group recorded a Dh37 million fair value loss in the quarter.
“Abu Dhabi Aviation continued to grow over the first nine months of the year, with revenue up 22.9%, led by sustained demand for our maintenance and defence-related services. The contracted nature of this work provided a stable base at a time when the regional operating environment weighed on our more discretionary activities, from third-party maintenance to our General Aviation Services businesses,” said Mahmood Alhay Alhameli, Group Chief Executive Officer.
“While this environment had an impact on our margins, it has also sharpened our priorities. For the remainder of the year, we are focused on enhancing margins, strengthening cash generation and bringing the capacity we have built into full utilisation, while continuing to concentrate our capital behind the core businesses that drive our growth and returns to shareholders.
“With a net cash position and a robust balance sheet, Abu Dhabi Aviation is well positioned to manage the current environment while continuing to invest in its long-term growth.”
