Ports operator reports record quarterly revenue of $2.18 billion and net profit of $265 million, as alternative trade routes, expanding international operations and stronger shipping and logistics businesses offset declining UAE cargo volumes.

AD Ports Group reported record financial results for the third quarter of 2026, with revenue increasing 48% year-over-year to $2.18 billion and net profit climbing 64% to $265 million, despite significant disruptions to maritime trade in the Arabian Gulf.

The Abu Dhabi-based ports, shipping and logistics group said its performance reflected the benefits of a diversified business model, expanded international operations and measures implemented to maintain cargo flows amid ongoing geopolitical tensions and disruptions to shipping through the Strait of Hormuz.

Group EBITDA increased 63% to $536 million, with the EBITDA margin improving to 24.6%, compared with 22.3% in the corresponding quarter of 2025.

The results were particularly notable given the substantial decline in cargo volumes handled at the group's UAE ports, where regional shipping disruptions continued to affect vessel traffic and terminal operations.

Ports Recover from Second-Quarter Lows

AD Ports Group's Ports Cluster generated third-quarter revenue of $217 million, an increase of 12% year-over-year, while EBITDA rose 8% to $106 million. The cluster maintained a strong EBITDA margin of 48.7%.

However, underlying cargo volumes reflected the continued impact of regional instability.

UAE container throughput totaled 751,000 TEUs, down 57% from the corresponding quarter in 2025. Despite that steep annual decline, container volumes rebounded more than 30% compared with the second quarter of 2026.

Bulk and general cargo volumes followed a similar pattern, falling 54% year-over-year to 4.5 million tonnes but recovering 48% sequentially.

Container terminal capacity utilization in the UAE improved to 29%, compared with 22% during the second quarter, while utilization across the group's international terminals increased to 73%, up from 61%.

The combination of improving quarterly cargo volumes, international terminal growth and the stability provided by the group's landlord business model helped support positive financial results despite the substantial year-over-year decline in UAE throughput.

Alternative Trade Routes Support Recovery

A central factor behind the operational recovery was AD Ports Group's response to shipping disruptions affecting the Strait of Hormuz.

Since March, the company has implemented a series of measures under the UAE's National Programme to Strengthen Supply Chain Resilience, designed to preserve cargo movements and maintain access to regional markets.

These initiatives included rerouting cargo and feeder shipping services through Fujairah Terminals and Khor Fakkan Port, both located on the Gulf of Oman outside the Strait of Hormuz.

The group also established additional land and air transport connections, expanded warehousing and storage capacity, and developed alternative multimodal logistics corridors to support trade throughout the UAE and Gulf Cooperation Council countries.

Among the developments was a partnership with Etihad Rail to establish direct rail services connecting Fujairah Terminals with the Industrial City of Abu Dhabi.

The arrangement strengthens the connection between Gulf of Oman port infrastructure and inland industrial and logistics facilities, providing an alternative route for cargo moving to and from Abu Dhabi.

Shipping and Logistics Drive Earnings

While the Ports Cluster showed signs of recovery, AD Ports Group's Maritime & Shipping business delivered the largest contribution to quarterly revenue and earnings growth.

Maritime & Shipping revenue surged 56% year-over-year to $1.29 billion, representing 58% of total group revenue. EBITDA more than doubled to $335 million, producing a margin of 26%.

The company attributed the performance to additional fleet capacity and elevated freight rates, particularly in container feeder shipping, Ro-Ro transportation and tanker operations.

Container feeder volumes reached 900,000 TEUs, unchanged year-over-year but up 22% from the second quarter. Freight rates continued to increase on both an annual and sequential basis.

The group's bulk, multipurpose and Ro-Ro fleet expanded to 76 vessels, compared with 48 vessels a year earlier, providing additional capacity to capitalize on favorable market conditions.

The Logistics Cluster also recorded substantial growth, with revenue increasing 76% to $534 million and EBITDA rising 246% to $32 million.

AD Ports Group said proactive measures to maintain supply chain continuity across the UAE and GCC helped offset a 36% year-over-year decline in UAE polymer cargo volumes.

Meanwhile, the Economic Cities & Free Zones business generated revenue of $188 million, up 15%, supported by industrial land leasing, staff accommodation utilization and gas provisioning activities.

International Expansion Continues

AD Ports Group continued investing in its international ports and logistics network during the quarter, including funding its acquisition of Brazil's Corredor Logística e Infraestrutura (CLI) Group, an independent agricultural bulk terminal operator.

The acquisition, completed October 1, 2026, represents a significant expansion of the company's international bulk cargo handling business.

The group is also progressing its acquisition of Germany-based MBS Logistics, further expanding its global logistics operations.

In the UAE, SAFEEN Drydocks expanded ship repair capacity through the addition of a 230-meter floating dock at Zayed Port. The business operates more than 170,000 square meters of shipyard facilities across Khalifa Port and Zayed Port.

Dr. Afif Saif Al Yafei, Group CEO of AD Ports Group, said the results demonstrated the company's ability to adapt to challenging operating conditions.

"In one of the most challenging periods in its 20-year history, AD Ports Group achieved record results during Q3," he said, pointing to the company's operational resilience and integrated supply chain capabilities.

Financial Position Strengthens

Operating cash flow reached $801 million during the quarter, approximately three times the year-earlier level, supported by higher operating profits and improved working capital management.

Organic capital expenditure totaled approximately $316 million.

Free cash flow to the firm was negative $188 million, primarily reflecting funding associated with the CLI acquisition. Excluding the transaction, adjusted free cash flow would have been positive at approximately $319 million.

Net leverage improved to 3.5 times, compared with 4.4 times in the third quarter of 2025.

For the first nine months of 2026, AD Ports Group reported revenue of $5.67 billion, up 41%, while net profit increased 64% to $671 million.