Aramex has announced its group revenue reached Dhs3.06 billion for the first half of 2025, reflecting a 1% increase compared to the previous year. This growth is attributed to robust performance in domestic and regional logistics, which helped to compensate for a decline in international express delivery services.
The logistics and transportation firm identified a shift in customer preferences towards regional and local solutions, leading to changes in its business mix.
In H1, revenues from Domestic Express surged by 13%, while Logistics saw a 22% increase and Freight Forwarding rose by 8%. Conversely, revenue from International Express fell by 15% during the same timeframe.
Profitability Affected by Changing Product Mix
The alteration in demand has put pressure on profit margins. The company’s gross profit declined by 6% to Dhs694 million, with the gross profit margin declining to 23% from last year’s 24.4%. The traditionally high-margin International Express segment experienced a drop in gross profit of Dhs83 million, which offset the gains made in Domestic Express (+Dhs8 million), Freight (+Dhs9 million), and Logistics (+Dhs22 million).
The group’s EBIT (earnings before interest and taxes) plummeted by 45% to Dhs77 million in H1 2025. The net profit for the half-year was reported at Dhs8 million, a significant decline from Dhs49 million in the same period the previous year. Aramex attributed this decline to a combination of decreasing margins and one-off expenses of Dhs26 million connected to its transformation initiatives and the acquisition of Q Logistics.
If these exceptional items are excluded, the normalized EBIT for H1 2025 would stand at Dhs95 million, down 32% year-on-year, while normalized net income would be Dhs33 million, a decrease of 34%.
ADQ Acquires Majority Stake
The company announced that as of July 25, it has officially become a subsidiary of Abu Dhabi’s ADQ. This followed regulatory approval of ADQ’s acquisition of a 63% stake in Aramex through Q Logistics and Abu Dhabi Ports.
“The results of H1 2025 demonstrate our consistent execution and alignment with evolving customer demands,” stated acting group CEO Nicolas Sibuet. “Despite facing margin pressures and a changing product mix, we have implemented decisive strategies through our Accelerate28 program to realign operations and better meet customer needs.”
Segment Performance: Mixed Results
In the Domestic Express segment, revenues increased by 13% to Dhs853 million, with gross profit rising by 5% to Dhs184 million.
The International Express segment saw revenues decline by 15% to Dhs1.05 billion, with gross profit falling by 20% to Dhs324 million.
In Freight Forwarding, revenues rose 8% to Dhs871 million, maintaining stable gross profit margins of 13%, despite geopolitical challenges. Volume increases were noted across all freight categories.
The Logistics and Supply Chain segment saw remarkable growth, with revenues up by 22% to Dhs261 million in H1, and gross profit more than doubling to Dhs50 million, driven by better warehouse utilization and new contract acquisitions.
Volume Trends Reflect Market Changes
Total express shipment volumes hit 67.6 million in H1 2025, representing a 3% increase year-on-year. Domestic express volumes increased by 9% to 55.9 million, while international express volumes fell by 19% to 11.7 million.
Growth was also evident in freight shipment volumes:
- Air freight rose by 8%
- Sea freight (FCL) increased by 13%
- Sea freight (LCL) surged by 35%
- Land freight (LTL) was up by 22%
Q2 results exhibited similar pressures, with revenues holding steady at Dhs1.50 billion. Gross profit was recorded at Dhs329 million, down from Dhs345 million the previous year.
EBIT for Q2 fell by 66% to Dhs16 million, with a net loss of Dhs9 million for the quarter. Normalized EBIT and net income for Q2 were reported at Dhs31 million and Dhs5 million, respectively.
Accelerate28 Program in Progress
Launched in Q1 2025, the Accelerate28 initiative is a key component of the company’s transformation efforts. With more than 300 initiatives underway across four newly defined regions, Aramex anticipates a significant full EBIT impact by 2028.
The company emphasized its commitment to long-term investments despite facing short-term profitability challenges.
Future Prospects
As of June 30, Aramex reported having Dhs542 million in cash, with a debt-to-EBITDA ratio of 3.4x (accounting for IFRS 16 adjustments).
The company believes it is in a solid financial position to continue its transformation while adapting to the evolving landscape of global logistics.