Aramex posts record revenue as freight demand surges

Aramex reported record quarterly revenue of Dh1.83 billion for the three months ended June 30, 2026, as freight-forwarding demand and flexible routing helped the logistics group navigate regional transport disruption.

Second-quarter revenue increased 22 per cent from Dh1.50 billion a year earlier, marking the highest quarterly total in the company’s history. May and June also produced record monthly revenue figures.

Net profit rose to Dh47.4 million, compared with a normalised profit of Dh5.9 million in the same quarter last year. On a reported basis, Aramex had recorded a Dh9.3 million loss during the corresponding 2025 period.

The sevenfold increase in normalised profit reflected stronger revenue, tighter control of operating expenses and savings generated through the company’s Accelerate28 transformation programme. The programme is intended to improve productivity, simplify operations and raise profitability across the group.

Earnings before interest and tax climbed to Dh87.1 million from a normalised Dh31.9 million, an increase of 173 per cent. The EBIT margin widened to 4.8 per cent from 2.1 per cent.

Gross profit advanced 19 per cent to Dh391.8 million. However, the gross profit margin eased to 21.4 per cent from 22 per cent, reflecting a changing mix of services as freight forwarding accounted for a larger share of business.

Freight forwarding delivered its highest quarterly revenue on record. Customer demand, disciplined pricing and the company’s combination of air, sea and land transport services supported the division’s performance.

Regional instability disrupted established shipping and aviation routes during the quarter, raising fuel costs and complicating the movement of goods. Aramex responded by activating alternative routes through its Middle East gateway network.

The company introduced additional Europe-to-Middle East land transport options and expanded its use of air and sea charter capacity. These measures allowed customers to maintain supply chains despite changing operating conditions and pressure on conventional trade corridors.

Domestic Express also recorded continued growth. International Express shipment volumes were broadly stable after declining during earlier reporting periods, indicating that the cross-border parcel business may be approaching a more balanced operating position.

Group chief executive Amadou Diallo said the results demonstrated the resilience of Aramex’s diversified business model and reflected progress in executing its strategy. He said the company maintained uninterrupted services while prioritising the safety of employees during regional disruption.

Aramex has placed greater emphasis on what it calls the “4As” of alignment, accountability, agility and adaptability. The framework is designed to speed up decision-making, clarify management responsibility and give regional teams greater authority to respond to customer requirements.

For the first half of 2026, group revenue increased 12 per cent to Dh3.43 billion from Dh3.06 billion a year earlier. Net profit reached Dh64.4 million, compared with a normalised Dh33.4 million during the first six months of 2025.

First-half EBIT rose 46 per cent to Dh139.1 million on a normalised comparison, while the EBIT margin improved to 4.1 per cent from 3.1 per cent. Gross profit increased 6 per cent to Dh734.3 million, although the gross margin declined to 21.4 per cent from 22.7 per cent.

The margin movement underscores the trade-off accompanying the expansion of freight forwarding. Freight operations can generate substantial revenue during periods of supply-chain disruption, but often carry lower margins than international express delivery and parcel-forwarding services.

Aramex entered the second half with Dh503 million in cash. Its debt-to-EBITDA ratio stood at 2.7 times, including lease liabilities recognised under IFRS 16.

The balance sheet provides resources for continued investment in automation, network capacity and specialised logistics services. Aramex has been expanding into sectors that require more complex handling, including healthcare, pharmaceuticals and temperature-controlled supply chains.

The Dubai-based company opened a dedicated healthcare and pharmaceutical hub at Dubai South Free Zone in March. The facility is intended to support regional distribution of medical products and strengthen the group’s presence in higher-value logistics.

Aramex is also seeking growth in Africa, where rising internet use and demand for international consumer goods are supporting parcel-forwarding services. The group operates Shop & Ship and MyUS, platforms that allow customers to purchase goods from overseas retailers and receive them in markets where those retailers have limited physical operations.