Emirates Central Cooling Systems (EMPOWER) H2 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in 2025, maintaining market leadership in district cooling with contracted capacity reaching 1.963 million RT and connected capacity at 1.656 million RT, both up from 2024.

• Revenue rose 4.9% year-over-year to AED 3.42 billion, with net profit before tax up 10.5% to AED 1.1 billion and net profit attributable to equity holders at AED 993.3 million.

• Supported by favorable macroeconomic trends in the UAE and Dubai, including strong GDP growth, record tourism, and a buoyant real estate market.

• Strong cash flow visibility from over 25 years of long-term contracted revenue and a diversified customer base.

• Board of Directors reappointed for a three-year term, with several industry awards and CSR recognitions received.

Financial highlights

• Full-year 2025 revenue reached AED 3,419.3 million, up 4.9% year-over-year; EBITDA grew 6.3% to AED 1,649 million, and operating profit rose 6.7% to AED 1,272.5 million.

• Net profit after tax increased 10.5% to AED 1,004 million; net profit attributable to equity holders was AED 993.3 million, up 10.8%.

• EBITDA margin for 2025 was 48.21%; gross margin improved to 43.5%.

• Cash and cash equivalents rose 16.5% to AED 2,255.7 million; total assets increased to AED 11.82 billion.

• One-off credit of AED 26 million from Dubai Municipality positively impacted Q4 results.

Outlook and guidance

• Projected connected capacity to reach 1.76–1.77 million RT by end of 2026, adding 100,000–110,000 RT.

• EBITDA margin guidance for 2026 is 46%–47%, factoring in higher sewerage charges and operational efficiencies.

• Committed to annual dividend payments of AED 875 million for 2025 and 2026.

• CapEx guidance remains at AED 6,000 per connected load for new capacity, with project commitments of AED 825.1 million as of year-end.

• Management is assessing the impact of new IFRS standards effective from 2026 and 2027, with no material impact expected.