IHC profit nearly doubles to Dh8.2 billion in first quarter

Dubai: IHC reported a near doubling of first-quarter profit after tax, supported by stronger operating performance, higher investment income and gains across its diversified portfolio.

The Abu Dhabi-based investment company said profit after tax rose 98.5% year-on-year to Dh8.2 billion in the first quarter of 2026. Revenue increased 33.2% to Dh31.4 billion, while earnings per share rose 246.3% to Dh2.32.

The performance gives IHC a stronger start to the year, with growth spread across real estate, construction, marine, dredging, energy, mining, hospitality, food, financial services and technology.

Profit growth outpaces revenue

IHC’s first-quarter numbers show a faster rise in profit than revenue, with the group citing strong operating performance, investment income and disciplined execution across its portfolio.

The company’s total assets reached Dh445.3 billion at the end of March, up from Dh428.6 billion at the end of 2025. Total equity stood at Dh249.1 billion, while cash and bank balances remained high at Dh74.7 billion.

The cash position gives IHC significant room to fund new investments and platform growth, even after a busy quarter of acquisitions and strategic transactions.

Total debt increased to Dh94.8 billion, reflecting funding used to support growth initiatives. The group said its quick ratio stood at 2.7 times, pointing to continued financial flexibility.

“Q1 2026 marks a strong start to the year, reflecting the continued execution of our strategy to scale high-performing platforms and optimise capital allocation across the portfolio," said Syed Basar Shueb, CEO of IHC. "Our performance demonstrates the strength of our diversified model, with broad-based growth, margin expansion, and a significant uplift in profitability,” he said.

Real estate and marine lead revenue

Real estate and construction remained IHC’s largest revenue contributor in the first quarter, generating Dh10.8 billion. The company said the segment was supported by continued development activity and project execution.

Marine and dredging delivered Dh6.9 billion in revenue, reflecting continued project momentum across core and international markets.

Energy and mining contributed Dh5.4 billion, supported by expansion across mining and energy activities. Hospitality and leisure generated Dh2.7 billion, helped by stronger activity across the group’s assets.

Services and other segments added Dh1.7 billion, while food contributed Dh1.6 billion through agriculture and food production operations. Financial services generated Dh1.3 billion, and technology delivered Dh1 billion in revenue during the quarter.

The spread of revenue across multiple sectors remains central to IHC’s strategy, with the company continuing to build operating platforms across industries that offer scale, recurring demand and global expansion potential.

Deals widen global reach

IHC’s first quarter included several acquisitions and strategic partnerships that expanded its presence across financial services, energy infrastructure, payments, microfinance, packaging and technology.

The group entered a strategic collaboration with the US International Development Finance Corporation to mobilise global capital and support investments across emerging markets.

IHC, Sirius International Holding and First Abu Dhabi Bank also received Central Bank approval for DDSC, a UAE dirham-backed stablecoin intended for institutional payments, settlement and trade flows.

In India, IHC completed the acquisition of a 26.7% stake in Sammaan Capital for $600 million, strengthening its presence in the country’s financial sector.

The group also widened its energy exposure. ePointZero signed an agreement to acquire 100% of Traverse Midstream Partners for $2.25 billion, expanding its presence in gas infrastructure. IRH Global Trading signed a 20-year LNG sale and purchase agreement securing 1 million tonnes per annum of supply.

In Europe, 2PointZero Group acquired a 60.8% stake in ISEM Packaging Group, expanding into luxury and consumer packaging. Beltone Capital acquired Baobab Bank, adding scale in African microfinance markets.

IHC and IFZA also announced a partnership at the World Economic Forum 2026 to co-develop next-generation free zones and economic platforms.

Technology and healthcare platforms expand

IHC’s portfolio activity also stretched into consumer technology, healthcare and defence-related maritime systems.

2PointZero Group invested in WHOOP’s Series G financing round, expanding its exposure to consumer wellness. Al Seer Marine expanded its strategic partnership with L3Harris Technologies to develop next-generation maritime unmanned systems.

Esyasoft was recognised by the World Economic Forum as the UAE’s third unicorn, strengthening IHC’s position in energy technology and digital infrastructure.

Burjeel Holdings launched the UAE’s first Adult Critical Care Nursing Residency Program, aimed at supporting healthcare workforce development and Emiratisation.

The group’s portfolio companies also had a visible presence in sustainability-related initiatives. Aldar was appointed exclusive real estate partner for Abu Dhabi Sustainability Week 2026, while NMDC Group and NMDC Energy received Gold-tier recognition at the same event.

IHC keeps focus on capital allocation

IHC said it will continue to focus on disciplined capital allocation, portfolio optimisation and targeted global expansion through the rest of 2026.

The company’s outlook points to continued investment across technology, infrastructure, financial services and consumer sectors, backed by its large balance sheet and strong liquidity.

Shueb said IHC would keep recycling capital into opportunities where it sees stronger long-term value.

“We continue to recycle capital into high-conviction opportunities, expand our global footprint, and accelerate the transformation of our platforms into globally competitive businesses. With a disciplined approach and strong liquidity, we are well-positioned to sustain momentum and deliver long-term shareholder value,” he said.