Aramex quarterly profit surges 817% as revenue hits record Dh1.98 billion

Dubai: Aramex reported an 817% jump in third-quarter net profit to Dh47.8 million, as strong demand for freight forwarding services pushed revenue to a record Dh1.98 billion for the second consecutive quarter.

The Dubai-listed logistics company's revenue rose 24% from Dh1.60 billion a year earlier, surpassing the previous quarterly record of Dh1.83 billion set in the April-June period. Net profit increased from Dh5.2 million in the third quarter of 2025, according to financial results released on Monday.

The sharp rise in earnings came as Aramex expanded revenue across all four business divisions and tightened operating costs, although a greater contribution from freight forwarding weighed on gross profit margins.

Operating profit, measured by earnings before interest and tax (EBIT), increased 46% to Dh93.8 million from Dh64.1 million a year earlier. The operating margin improved to 4.7% from 4%, while the net profit margin widened to 2.4% from 0.3%.

Freight forwarding remained Aramex's biggest growth driver, recording its second consecutive quarter of record revenue after surpassing the previous high achieved in the second quarter.

The company attributed the performance to sustained customer demand, pricing discipline and its ability to transport shipments through different modes, including air, sea and land.

Aramex said it maintained uninterrupted services during the quarter by using alternative land routes between Europe and the Middle East, alongside air and sea charter capacity. These arrangements provided customers with additional transport options as the company managed operating pressures across its markets.

Revenue also increased across its Domestic Express, International Express and Logistics & Supply Chain Solutions divisions, although the company did not provide individual revenue figures or growth rates for those businesses in its earnings statement.

"Delivering our highest quarterly revenue for the second consecutive quarter marks another important milestone for Aramex," said Amadou Diallo, Group Chief Executive Officer.

"Following the record performance achieved in Q2, we have continued this momentum into Q3, with Freight Forwarding once again leading our growth."

Despite the stronger revenue and earnings performance, Aramex reported a decline in gross profit margins, reflecting changes in the composition of its business.

Gross profit rose 12% to Dh415.1 million during the quarter, slower than the 24% increase in revenue. As a result, the gross profit margin narrowed to 21% from 23.2% a year earlier.

Aramex attributed the decline to the growing contribution from freight forwarding, which changed the overall revenue mix.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16% to Dh189.8 million, although the EBITDA margin slipped to 9.6% from 10.2%.

The company said revenue growth and tighter management of operating costs and overheads supported its improvement in operating profit and net earnings.

For the first nine months of 2026, Aramex reported revenue of Dh5.41 billion, up 16% from Dh4.66 billion in the corresponding period last year.

Net profit surged 759% to Dh112.2 million from Dh13.1 million, while operating profit increased 65% to Dh232.9 million.

The nine-month operating margin improved to 4.3% from 3%, reflecting stronger operating profitability and continued cost management.

Gross profit increased 8% to Dh1.15 billion, although the gross profit margin narrowed to 21.2% from 22.8% a year earlier.

EBITDA rose 24% to Dh514.2 million, with the corresponding margin improving to 9.5% from 8.9%.

Aramex said it continued implementing its Accelerate28 transformation programme, which focuses on improving operational efficiency, accountability and profitability across its businesses.

"We remain focused on advancing Accelerate28 and embedding greater efficiency and accountability across our operations," Diallo said.

"The progress achieved during the year reinforces our confidence in the direction of our transformation program as we continue strengthening our capabilities, improving profitability and positioning Aramex for sustainable long-term growth."

As of September 30, Aramex held Dh445 million in cash and reported a debt-to-EBITDA ratio of 2.7, including lease liabilities accounted for under IFRS 16.

The company said its financial position supported continued investment in its transformation programme and long-term growth priorities.

Headquartered in the UAE and listed on the Dubai Financial Market, Aramex operates in more than 600 cities across 70 countries and employs over 16,000 people.