District Cooling utility company reports a connected capacity increase of 19% YoY to 1.57 million Refrigeration Tons, and an EBITDA of AED 1.27 billion, with a margin of 51.6%

ABU DHABI, UAE, 13

February

202

6

:

National Central Cooling Company PJSC announced its results for the period ending December 31, 2025, reporting revenues of AED 2.46 billion and net profit of AED 465 million. The results reflect continued operational resilience, record capacity expansion and disciplined capital execution, the utility company said through a Press Release.

Total connected capacity increased 19% year-on-year to 1.57 million Refrigeration Tons (RT) as of December 31, 2025, driven by strong organic expansion and acquisitions, Tabreed said. Excluding the impact of M&A, connected capacity growth was up 4.4% year-on-year, near the high end of the company’s guidance range, Tabreed further said. Organic additions reached 58,200 RT in 2025 – the highest level in the past five years – driven primarily by new connections in the UAE, Tabreed added.

According to Tabreed, inorganic additions totalled 190,800 RT, resulting from the acquisition of PAL Cooling in a 50:50 joint venture, alongside CVC DIF. Tabreed said it commissioned three new greenfield plants during the year and acquired five operational plants, as part of PAL Cooling, bringing the total number of its operating plants to 99 as a group. Tabreed said consumption volumes reached 2.62 billion RTH, a slight one per cent year-on-year decline due to relatively colder weather conditions. Throughout the year, operational availability and efficiency remained high, Tabreed said, reflecting its investment in innovative technologies and proactive asset management.

According to Tabreed, group revenue increased one per cent, year-on-year to AED 2.46 billion, underscoring the resilience provided by fixed capacity charges despite weather-related softness in consumption revenue. EBITDA, Tabreed said, increased by one per cent, year-on-year to AED 1.27 billion, with a margin of 51.6%, supported by operating leverage and efficiencies.

Net profit for FY 2025, Tabreed said, was AED 465 million, primarily reflecting the company’s continued operational strength while absorbing the impact of higher finance costs, following the refinancing of low-cost debt at prevailing market rates and additional debt raised to fund Tabreed’s investment in PAL Cooling. Reported earnings, Tabreed pointed out, also reflect one-off transaction costs related to the closing of the Palm Jebel Ali concession and PAL Cooling acquisition, as well as higher financing and fair value amoritisation charges related to the PAL Cooling JV.

Tabreed listed the following milestones:

Completed the acquisition of PAL Cooling Holding in a 50/50 partnership with CVC DIF for an enterprise value of AED 4.1 billion, adding c. 600,000 RT of concession capacity across eight exclusive concessions on Abu Dhabi’s main island and Al Reem Island (ADGM)

Signed a landmark joint venture and concession with Dubai Holding Investments to provide 250,000 RT of District Cooling to Palm Jebel Ali. Construction commenced in Q3 2025, with first cooling expected in late 2027 or early 2028

Commissioned three new greenfield plants during 2025 and added five operating plants as part of the PAL Cooling acquisition, deepening Tabreed’s presence across core markets and reinforcing high operational availability

In partnership with the UAE Ministry of Defence and Emerge, Tabreed completed the integration of around 4,000 solar panels supplying 2.4 MW of clean electricity to two Abu Dhabi District Cooling plants. This reduces reliance on the grid during peak periods and prevents more than 2,600 tonnes of CO₂, annually

Entered a long‑term framework with Johnson Controls to co‑develop next‑generation cooling technologies, including centrifugal chillers with variable‑speed drives and AI‑enabled performance analytics, supporting efficiency, reliability and regional climate‑neutrality goals

Strengthened the capital structure and liquidity profile through refinancing of debt and additional debt issuance, thereby extending average loan maturity and supporting growth investments

Dr Bakheet Al Katheeri (image courtesy Tabreed)

Commenting on the full-year performance, Dr Bakheet Al Katheeri, Tabreed’s Chairman, said: “2025 was a transformational year for Tabreed, marked by major strategic steps that have strengthened our platform for both the medium and long term. The addition of PAL Cooling and the Palm Jebel Ali concession have deepened our presence in core markets and expanded the scale at which we operate. Across the business, our teams continued to deliver reliably for customers while investing in the systems and infrastructure that will support the company’s next phase of growth. As a national champion in District Cooling, we are proud to support the UAE’s energy efficiency goals and remain focused on delivering capacity-led, concession-backed growth and creating lasting, sustainable value for our shareholders and stakeholders.”

According to Tabreed, as of year-end 2025, net debt to EBITDA stood at 4.6x, a temporary increase in leverage reflecting the impact of PAL Cooling acquisition. Liquidity remains robust, Tabreed said, supported by a fully undrawn AED 1.2 billion Green RCF and the absence of any near‑term debt maturities. Tabreed said it remains disciplined and focused on its capital allocation approach.

Tabreed said it strengthened its financial position during 2025 through the issuance of a USD 700 million Green Sukuk in Q1, executed under its Green Finance Framework, with proceeds directed toward refinancing of debt obligations. In Q3, Tabreed said, it doubled its Green Revolving Credit Facility to AED 1.2 billion from AED 600 million, maintaining original terms. This increase, Tabreed said, materially improves its funding flexibility and underpins its broader creditworthiness. In Q4, Tabreed said, it raised AED 1.8 billion new bank debt to support its strategic growth initiatives and optimise its capital structure.

Tabreed said it continues to hold investment-grade ratings from Moody’s and Fitch.

Tabreed said the Group’s Board of Directors recommended a final dividend of 6.5 fils for H2 2025, bringing the total dividend for the year to 13 fils per share. This, Tabreed said, represents a payout ratio of 71% of 2025 normalised net profit, aligned with historical levels, despite significant investment undertaken to secure long-term growth.

Tabreed said it is entering 2026 with a strong and stable core business, supported by long-term contracted capacity, high operational availability and disciplined financial management. Capacity growth and margins are expected to remain within its guided range, driven by continued real estate development, infrastructure expansion and delivery of new tourism destinations across the UAE and Saudi Arabia, Tabreed said. Demand fundamentals and customer relationships, it added, remain solid, and the organic capex programme continues to progress on schedule.

Looking ahead, Tabreed said, medium-term growth will be reinforced by the integration and ramp-up of PAL Cooling and the buildout of Palm Jebel Ali, both expected to contribute positively as capacity comes online. With a well-capitalised balance sheet and proven execution capability, Tabreed said, it is well positioned to deliver sustainable, capacity-led growth through 2026 and beyond.