Sailing away; FY26 guidance upgraded, driven by Shipping

Research evidence excerpt

Sailing away; FY26 guidance upgraded, driven by Shipping

MENA Energy

ADNOC L&S (ADNOCLS UH)

EQUITY RESEARCH Quick Take

May 14, 2026

Sailing away; FY26 guidance upgraded, driven by Price: AED5.79

Price Target: AED7.30 Shipping

Rating: Overweight Takeaways

Key Statistics: We expect ADNOC L&S 1Q26 results to be taken positively by the market,

Symbol ADS: ADNOCLS with the company reporting adjusted net income and EBITDA broadly in UH

line with consensus, driven by strong Shipping and Services performance 52-Week Range 4.12 - 6.22

Market Cap 42,837.3 partly offset by weaker-than-expected Integrated Logistics. However, the

ADV (3 mo) 8,057,897 company has raised its FY26 group profitability growth guidance, mainly

Free Float (%) 22.000 driven by its Shipping segment, whereby EBITDA guidance has risen to

Shares Out (M) 7,398.5 mid/high 50% growth from high-single-digit growth. The company also

reiterated its dividend guidance of US$341m in FY26. We believe ADNOC

Research Analysts: L&S is attractively valued relative to its global shipping peers and see

Scott Darling upside to consensus estimates on better-than-expected profitability from +971 52 699 0785

scott.darling@cantor.com its Shipping segment. We reiterate our Overweight rating.

Good revenue growth and margin. ADNOC L&S reported 1Q26 revenue One-Year Price History

at US$1,083m vs consensus at US$1,187m, driven by Shipping across all

6.5

6 sub-sectors. EBITDA margin was 34% (vs 33% in 4Q25 and 29% in 1Q25),

5.5 5 which reflects strong margins across Tankers, Gas Carriers and Dry Bulk

4.5 Containers, although Services margin improved sharply q/q and was better

4 y/y. Adjusted net income was US$222m vs consensus at US$222m. Free

05/25 08/25 11/25 02/26

05/26 cash flow was US$130m (vs US$(26)m in 4Q25 and US$202m in 1Q25).