Salik profit falls 8.6% as Q3 trips rise 4%

Salik posted Dh1.04 billion in net income for the nine months to Sept. 30, an 8.6% decline from a year earlier, in financial results announced Nov. 13.

The Dubai toll operator said 2027 revenue should grow 6% to 8%, after revenue for the first nine months of 2026 fell 6.9% year on year to Dh2,117.3 million.

The third quarter showed a partial recovery from the second quarter. Revenue rose 3.2% quarter on quarter to Dh705.3 million, while the year-on-year revenue drop narrowed to 5.7% from 11.9% in the prior quarter.

Salik recorded Dh474.0 million in third-quarter EBITDA, earnings before interest, taxes, depreciation and amortization, up 1.2% from the second quarter. Net profit for the quarter was Dh341.1 million, a 1.9% sequential increase.

Ibrahim Sultan Al Haddad, Salik’s chief executive, pointed to the balance sheet. “Cash generation strengthened markedly,” he said. Net debt to EBITDA declined to 2.29 times from 2.45 times at the end of the second quarter, below a covenant level of 5 times.

Traffic volumes also improved from the previous quarter. Salik reported 194 million trips in the third quarter, up 4% from the second quarter, and said peak-hour trips for the first nine months were 2% higher than a year earlier. September was the busiest month since February, according to the company.

The pressure remained visible in core toll income. Toll usage fees reached Dh1.809 billion over the nine-month period, down 10.1% year on year. Fines rose 6.5% to Dh220.1 million, while tag activation fees increased 8.5% to Dh37.7 million.

Ancillary revenue climbed 82.5% to Dh26.5 million, helped by the Parkonic parking partnership. Salik also renewed its technology partnership with TransCore for five years in September and launched seamless parking payments at Dubai Harbour’s Harbour West Car Park under an agreement with Shamal.

Margins were softer than a year earlier. Third-quarter EBITDA margin fell to 67.2% from 69.4%, with Salik citing a concession fee that rose to 23.1%, as well as higher operating, maintenance, staff, software and provider commission costs across a smaller revenue base.

Chairman Mattar Al Tayer said the results “reflect the strength of its business model, operational efficiency, and ability to capitalize on Dubai’s rapid economic and urban growth.” Al Haddad cited Dubai’s projected population of 5.8 million by 2040 and the Dubai 2040 Urban Master Plan’s expansion of five urban centres, including three near Salik’s Sheikh Zayed Road gates.

For 2027, Salik is targeting an EBITDA margin of 69.5% to 70.5% and a net profit margin of 50.5% to 51.5%. The company said it expects a lower concession fee under an inflation protection mechanism, partly offset by inflation-related cost increases.

Salik plans to distribute 100% of net profit as cash dividends, subject to board recommendation and annual general meeting approval. The company had 63 full-time employees in the third quarter, up 21.2% from a year earlier, with Emiratisation at 31.8%.