AD Ports Group posts record profit despite sharp decline in UAE cargo volumes

AD Ports Group reported record quarterly profitability for the three months ended 30 September 2026, despite a substantial decline in cargo volumes at its UAE ports caused by continuing disruption to maritime traffic through the Strait of Hormuz.

The Abu Dhabi-based ports, shipping and logistics group recorded revenue of AED 7.99 billion, an increase of 48% compared with the corresponding period of 2025. EBITDA rose 63% to AED 1.97 billion, while total net profit increased by 64% to AED 975 million, supported by growth across the company’s four core business clusters.

The results highlight the contrasting effects of regional shipping disruption on the group’s operations. While container and general cargo throughput in the UAE remained substantially below year-earlier levels, higher shipping rates, additional maritime capacity, international operations and stronger logistics activity helped offset the impact on overall earnings.

UAE ports recover sequentially despite Hormuz disruption

Container throughput at AD Ports Group’s UAE terminals fell 57% year on year to 751,000 TEU during the third quarter. Nevertheless, volumes increased by more than 30% compared with the preceding quarter, indicating a partial recovery from the disruption experienced earlier in 2026.

Bulk and general cargo volumes in the UAE declined 54% year on year to 4.5 million tonnes, although they increased 48% compared with the second quarter. Container terminal capacity utilisation in the UAE improved to 29%, from 22% in the preceding three months, while international capacity utilisation rose to 73% from 61%.

To maintain cargo movements amid disruption to commercial shipping through the Strait of Hormuz, the group has implemented alternative transport arrangements across the UAE. These include rerouting cargo and feeder shipping services through Fujairah Terminals and Khor Fakkan Port, both located outside the Strait of Hormuz on the Gulf of Oman.

Additional land and air transport connections, together with expanded warehousing and storage arrangements, have also supported efforts to maintain supply chain continuity.

Despite lower domestic volumes, the Ports Cluster generated revenue of AED 798 million, up 12% year on year, while EBITDA increased 8% to AED 388 million. The company attributed its resilience partly to its landlord business model and expanding international operations.

Maritime and logistics operations drive earnings growth

The Maritime & Shipping Cluster remained the group’s largest revenue contributor, accounting for 58% of consolidated revenue during the quarter.

Cluster revenue increased by 56% year on year to AED 4.74 billion, while EBITDA more than doubled to AED 1.23 billion. The performance reflected higher rates and increased capacity across container feeder shipping, Ro-Ro services and tanker operations.

Container feeder volumes reached approximately 900,000 TEU, remaining broadly unchanged from a year earlier but increasing 22% compared with the second quarter. The group’s bulk, multipurpose and Ro-Ro fleet expanded to 76 vessels, compared with 48 during the corresponding period of 2025.

The Logistics Cluster also recorded substantial growth, with revenue increasing by 76% to AED 1.96 billion and EBITDA rising by 246% to AED 116 million.

These improvements came despite a 36% year-on-year decline in UAE polymer volumes, reflecting the continued impact of regional transport disruption. The company said measures introduced across the UAE and wider Gulf region helped mitigate the effects and maintain logistics operations.

The Economic Cities & Free Zones Cluster contributed revenue of AED 690 million, an increase of 15%, supported by industrial land leasing and other activities. During the quarter, KEZAD Abu Dhabi added 1.2 square kilometres of net new industrial land leases.

International expansion and financial position

AD Ports Group continued to expand its international operations during the reporting period, including funding the acquisition of Brazil’s Corredor Logística e Infraestrutura (CLI), an independent agri-bulk port terminal operator.

The acquisition was completed on 1 October 2026, after the end of the third quarter. The group is also progressing its acquisition of Germany-based MBS Logistics, which is intended to strengthen its international freight forwarding and logistics network.

Operating cash flow reached AED 2.94 billion during the quarter, approximately three times the level recorded a year earlier. Net leverage improved to 3.5 times, compared with 4.4 times in the third quarter of 2025.

However, free cash flow to the firm was negative AED 691 million, reflecting funding and cash outflows related to the CLI acquisition. Excluding the transaction, the company reported that free cash flow would have been positive at AED 1.17 billion.

The group also disclosed further progress in the proposed acquisition of its remaining publicly held shares by L’IMAD Holding Company. Following the tender offer, L’IMAD increased its ownership to 98.93%, with the remaining acquisition process and planned delisting from the Abu Dhabi Securities Exchange subject to the applicable procedures and timetable.

For the first nine months of 2026, AD Ports Group generated revenue of AED 20.83 billion, up 41% year on year, while total net profit increased 64% to AED 2.46 billion.

The results demonstrate how the group’s diversified business structure has supported profitability during an extended period of disruption to Gulf shipping. However, the sharp year-on-year decline in UAE port volumes illustrates the continuing operational challenges facing regional maritime trade, even as alternative transport corridors and international businesses help sustain financial performance.