Tabreed Strengthens Operational Model in 2025 with AED 2.46 Billion Revenue and AED 465 Million Net Profit

Abu Dhabi | EcoPulse24

The National Central Cooling Company (Tabreed) announced stable financial and operational performance for the fiscal year ended December 31, 2025, underscoring the strength of its fixed-capacity fee business model and disciplined expansion amid climate and economic fluctuations.

According to the published results, Tabreed’s 2025 revenue reached AED 2.46 billion, marking a modest 1% year-on-year increase, while net profit stood at AED 465 million, reflecting continued strong operational performance and disciplined capital management.

Operational capacity saw a record 19% growth to 1.57 million refrigeration tons by year-end, driven by a combination of organic expansion and strategic acquisitions. Excluding mergers and acquisitions, organic capacity grew by 4.4%, near the upper end of the company’s guidance range.

In 2025, Tabreed achieved natural capacity additions of 58,200 refrigeration tons, the highest in five years, primarily supported by new connections within the UAE. The company also commissioned three new plants, bringing its total to 99 operational stations, maintaining high readiness and operational efficiency.

Total consumption reached 2.62 billion refrigeration ton-hours, a slight 1% year-on-year decrease due to relatively cooler weather. Nevertheless, revenue remained stable, highlighting the resilience of Tabreed’s business model, which relies heavily on fixed capacity fees rather than solely on consumption.

Operational profitability improved, with EBITDA rising 2% to AED 1.27 billion and a strong margin of 51.6%, supported by operational efficiency and asset management enhancements.

For shareholder returns, the Board of Directors recommended a final dividend of 6.5 fils per share for the second half of 2025, bringing the total annual payout to 13 fils per share - representing 71% of adjusted net profit, balancing distributions and long-term growth investment.

Chairman Dr. Bakhit Al Katheeri described 2025 as a transformational year, highlighting acquisitions such as PAL Cooling and the Palm Jebel Ali concession, which deepened Tabreed’s presence in key markets and expanded its asset base, alongside ongoing investments in advanced systems and infrastructure.

EcoPulse24 Analysis: Tabreed’s 2025 results reflect a highly stable and resilient operational model, particularly in a sector often impacted by climate factors. Despite lower actual consumption due to weather, the company maintained revenue growth and strong margins, underscoring the effectiveness of its long-term fixed-capacity fee approach. Expansion in operational capacity - both organically and via acquisitions - strengthens future cash flow outlook. Economically, Tabreed stands out as a primary beneficiary of urban and infrastructure development in the UAE, with strong potential to sustain stable dividends alongside investments in sustainable growth.