Emirates Central Cooling Systems (EMPOWER) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered robust financial and operational performance, with revenue up 16.8% year-over-year to AED 631 million and net profit after tax rising 44% to AED 208 million, driven by capacity additions, operational efficiencies, and cost reductions.

• Maintains the world's largest district cooling services capacity, with a diversified, long-term customer base of approximately 160,000 across 1,776 buildings and strong cash flow visibility.

• Strategic focus on sustainability, innovation, and alignment with UAE's Net Zero 2050 and Dubai's energy strategies.

• DEWA increased its stake to 80% following a shareholding transfer, strengthening controlling interest.

• The business remains resilient despite regional geopolitical uncertainty, with no expected delays in connecting contracted capacities for 2026 and early 2027.

Financial highlights

• Revenue increased 16.8% year-over-year to AED 631 million, with EBITDA up 21% to AED 358 million and EBITDA margin at 56.8%.

• Net profit after tax grew 44% to AED 208 million; basic/diluted EPS was AED 0.0207 versus AED 0.0143 in the prior period.

• Gross profit margin for Q1 2026 was 51.1%.

• Net debt stood at AED 2.93 billion, with net debt to EBITDA at 1.7x, well below the target range of 3–4x.

• Operating cash flow was AED 402 million, and cash and cash equivalents increased to AED 2.45 billion.

Outlook and guidance

• Connected capacity guidance for 2026 is 1.76–1.77 million refrigeration tons, with 66,000–76,000 tons to be added over the remainder of the year.

• EBITDA margin guidance for 2026 revised upward to 47–48% after strong Q1 performance.

• Dividend policy commits to AED 875 million annually for 2025 and 2026, with plans to increase in line with free cash flow growth beyond 2026.

• Management notes interim results are sensitive to weather and not necessarily indicative of full-year performance.

• Expansion strategy includes a new plant in Business Bay, with construction to start Q4 2026.