Abu Dhabi Aviation revenue jumps 28% to Dh4.66b, plans Dh674m asset sale

Abu Dhabi: Abu Dhabi Aviation (ADA) is selling Dh674 million worth of non-core real estate and financial assets as it sharpens its focus on aviation and maintenance, repair and overhaul (MRO) operations, even as the group ended the first half of 2026 with a Dh900 million net cash position.

The Abu Dhabi-listed aviation services group said its board approved the sale of a portion of its non-core holdings after the end of the reporting period. The assets had a combined carrying value of Dh674 million and were classified as held for sale at June 30.

ADA is a leading commercial helicopter and fixed-wing operator in the MENA region and a major aviation group backed by UAE state-owned ADQ. It employs more than 9,500 people and operates a fleet of 75 aircraft and five flight simulators.

Abu Dhabi Aviation said it is concentrating capital on its core aviation and MRO platform, with proceeds from the planned disposals expected to support growth in those businesses and shareholder returns.

That strategy comes as the group reported a 28.2 per cent increase in first-half revenue to Dh4.66 billion, despite a regional operating environment that remained unsettled for much of the period.

Defence MRO drives revenue growth

The biggest driver was Abu Dhabi Aviation's MRO business, which grew 30.6 per cent to Dh4.18 billion and accounted for 89.6 per cent of group revenue.

Demand across the group's defence MRO and fleet-support activities remained strong, while contracted programmes at AMMROC moved into full execution.

This helped offset softer activity in parts of the business, including third-party fly-in maintenance and some rotary-wing operations, where customers deferred discretionary work amid regional uncertainty.

“The diversity of our businesses allowed us to grow through this environment, with our defense-related operations more than offsetting softer areas of the business,” Mahmood Alhay Alhameli, Group CEO, said.

The group's balance sheet remained strong at the end of June, with Dh2.05 billion in cash and cash equivalents against Dh1.15 billion in total borrowings, leaving it with net cash of Dh900 million.

Debt stood at 1.1 times LTM EBITDA, which the management report describes as a conservative leverage profile.

Abu Dhabi Aviation said the approved divestment reflects its strategy of concentrating capital on its core aviation and maintenance platform. Proceeds are expected to support core aviation and MRO growth while reinforcing the group's capacity to deliver shareholder returns.

The company also has significant investment assets outside its core aviation operations. Its diversified financial asset and investment property portfolio was valued at Dh1.89 billion at June 30, unchanged in aggregate from the end of 2025.

What will Abu Dhabi Aviation do with the capital?

The group's priorities for the rest of 2026 are centred on expanding its core aviation businesses.

Abu Dhabi Aviation said it is focused on increasing MRO capacity and facility utilisation, expanding internationally and improving efficiency across its operations.

At Etihad Engineering, an additional widebody hangar was substantially complete during the first half, supporting the next phase of throughput growth. AMMROC also continued to expand its blade shop and Line Replaceable Unit capabilities.

The group is pursuing regional expansion, particularly in Africa's oil and gas aviation markets, while fleet modernisation remains another priority.

It is also continuing to develop advanced air mobility through its partnership with Archer Aviation, with the longer-term aim of introducing electric air taxi operations in Abu Dhabi.

Focus shifts to MRO capacity and regional growth

For the rest of 2026, Abu Dhabi Aviation said it will focus on increasing MRO capacity and utilisation, international expansion, operational efficiency and greater integration across its businesses.

The group said the additional widebody hangar at Etihad Engineering was substantially complete during the first half, supporting the next phase of throughput growth. AMMROC also continued to scale its blade shop and Line Replaceable Unit capabilities.

The company is also pursuing regional expansion, particularly in Africa's oil and gas aviation markets, while fleet modernisation remains a key part of its strategy.

Advanced air mobility is another area of focus through Abu Dhabi Aviation's partnership with Archer Aviation, with the longer-term aim of introducing electric air taxi operations in Abu Dhabi.

Alhay Alhameli said the group was entering the second half “a more focused Group”, having decided to concentrate capital behind its core businesses.

“Abu Dhabi Aviation will continue to strengthen its position across the region and beyond, delivering sustained value for our shareholders while investing in the longterm future of the Group.”