AD Ports: Resilient results: guidance maintained

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AD Ports: Resilient results: guidance maintained

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AD Ports

Resilient results: guidance maintained

Reiterate Rating: NEUTRAL | PO: 4.70 AED | Price: 4.46 AED

Shipping cluster to the rescue; ports impacted 15 May 2026

AD Ports delivered a solid 1Q26 despite disruptions in its ports business, with adjusted Equity

sales, EBITDA, and net income coming in 6% / 9% / 7% ahead of consensus,

respectively. The Maritime & Shipping clusters were the key growth drivers, with feeder

Key Changesshipping and drydocking delivering strong performance during the quarter. Container

feeder shipping volumes increased 20% YoY to 871k TEUs in 1Q26. In contrast, (AED) Previous Current

performance in the Ports Cluster was weaker, with container throughput declining 5% 2026E EPS 0.34 0.32

YoY. We expect a similar dynamic in 2Q, with the shipping business continuing to 2027E EPS 0.39 0.38

outperform, while port activity is likely to remain under pressure due to the ongoing 2028E EPS 0.46 0.44

closure of the Strait of Hormuz. We revise our estimates accordingly and reiterate our

Neutral rating with a price objective of AED4.70 (see details inside). Abhishek Kumar >>

Research Analyst

Merrill Lynch (DIFC)

+971 4 425 8227FCF negative in 1Q but still expect positive FCF in 2026E abhishek.kumar29@bofa.com

FCF was negative AED348mn during the quarter on higher capex of AED1.35bn with net

Sashank Lanka >>

debt/LTM EBITDA at 3.9x. Company maintains annual guidance of positive FCF subject Research Analyst

to the evolving regional situation. With AD Ports maintaining its capex guidance of Merrill Lynch (DIFC) +971 4 425 8231

AED4.5–5bn of capex in both 2026 and 2027, positive FCF is largely dependent on asset sashank.lanka@bofa.com

monetization.