Salik Company (SALIK) Q1 2026 earnings summary

Executive summary

• Maintains exclusive toll gate operations in Dubai with a 49-year concession, ensuring long-term business visibility.

• Revenue for Q1 2026 reached AED 728.9 million, down 3.0% year-over-year due to softer traffic trends, partially offset by growth in tag activation fees and ancillary revenues.

• EBITDA margin improved to 69.6%, up 44 bps YoY and 143 bps QoQ, reflecting cost efficiencies.

• Net profit remained stable YoY at AED 369.3 million, with a net profit margin of 50.7%.

• Strategic focus on sustainable growth, ESG stewardship, and diversification through ancillary revenue streams and partnerships.

Financial highlights

• Q1 2026 revenue: AED 728.9M, down 3.0% year-over-year; net profit: AED 369.3M, nearly flat YoY.

• EBITDA: AED 507.2M, down 2.4% YoY; EBITDA margin improved to 69.6%.

• Toll usage fees were AED 625.5M, down 6.0% YoY; fines revenue was AED 69.1M, stable YoY.

• Free cash flow reached AED 636.5M, up 1.6% YoY, with a margin of 87.3%.

• Q1 2026 includes a one-off revenue of AED 11.9M from old unused recharge cards and tags.

Outlook and guidance

• FY 2026 revenue growth guidance revised to -3% to 0% (previously 4–6%) due to geopolitical impacts.

• EBITDA margin guidance lowered to 67.5–68.5% (from 68–69%).

• Net profit margin after tax expected at 49.5–50.5%.

• Full recovery in traffic volume anticipated by Q3 2026.

• Management expects normalized operating trends as conditions stabilize.