Aramex records strong Q1 revenue

INDUSTRIAL NEWS

May 10, 2026 8:47 PM

Leading Dubai-based logistics firm Aramex has delivered tremendous results for the first quarter with its group revenues soaring to hit AED1.6 billion ($436 million), up 2% year-on-year from AED1.56 billion ($428 million) last year.

The strong Q1 results were achieved through resilient results in March where the company performance remained very close to business plan despite the outbreak of regional conflict, which disrupted trade activity and business across the region.

Additionally, performance in January and February exceeded business plan expectations across key products and markets, further helping cushion the impact of regional conflict that disrupted trade activity and business confidence in March.

The growth in domestic express, freight forwarding and logistics offset weaker international express volumes amid regional disruptions, it stated.

Aramex sustained uninterrupted services with its employees championing innovative solutions to ensure that the group rapidly adapted the network, leveraged flexible routing solutions and activated alternative gateways to maintain global connectivity.

The business maintained robust continuity of operations throughout the uncertain period.

Gross profit fell 6% year-on-year to AED342.5 million while the gross profit margin narrowed to 21.4% from 23.3%, reflecting changes in product mix, higher line-haul and fuel costs, and continued investment in capacity.

Earnings before interest and tax (EBIT) declined 15% to AED52 million while net profit was broadly flat at AED17 million.

Revenue from domestic express services rose 11%, freight forwarding increased 7%, and logistics revenue climbed 9%, offsetting a 9% decline in international express revenue.

On the solid performance, Nicolas Sibuet, Acting Group Chief Executive Officer during the past period said: "We entered 2026 on a strong footing, building on the momentum established in December with the Company having reported a record month and carrying this into January and February, where performance exceeded expectations across key parts of the business. While, Logistics continued its standout trajectory, Domestic Express maintained strong volume growth, and our Accelerate28 program began delivering tangible cost efficiencies; all of which reflect the hard work of our teams and the progress we have made in igniting transformation across the business."

"The operating environment became more complex in March with the outbreak of regional conflict disrupting trade activity and business confidence across the Gulf, with disruptions affecting parts of the network. Our priority throughout this period was the safety and wellbeing of our people while ensuring the continuity of our operations to serve our Customers and the Middle East region. Our teams responded with speed, adapting routes and leveraging our network flexibility to maintain service delivery," he stated.

Aramex said its Accelerate28 transformation programme, which includes more than 300 initiatives across functions and geographies, contributed to cost efficiencies and helped mitigate the impact of the disruptions.

During the quarter, the company refinanced around AED815 million of debt into a UAE-domiciled sustainability-linked facility, which it said would reduce financing costs and improve capital efficiency.

Aramex ended the quarter with a cash balance of AED551 million and a debt-to-EBITDA ratio of 2.8 times, including IFRS16 lease liabilities.

Group CEO Amadou Diallo said: "The first quarter of 2026 underscores the resilience of our business and the strength of our network. As we look ahead, we remain focused on disciplined execution, accelerating our strategic priorities, and delivering sustainable value across our operations."

"Against a backdrop of regional disruption and geopolitical uncertainty, Aramex delivered stable revenue growth in Q1 2026, with Group revenues reaching AED1.60 billion, up 2% year-on-year (YoY), driven by revenue growth in Domestic Express (up 11%), Freight Forwarding (up 7%), and Logistics (up 9%), which offset the decline in International Express (down 9%)," stated Diallo

The quarter opened with strong organic momentum carried forward from a record December 2025, the highest monthly revenue in Aramex’s history.

This momentum translated into January and February outperforming expectations across core products and markets. Notably, Oceania delivered a meaningful operational turnaround, while Africa demonstrated significant improvement, both contributing positively to early-quarter performance.

The early quarter revenue performance was supported by solid shipment volumes and broad-based progress across the network reflecting the early benefits of the Accelerate28 transformation program.

March performance was affected by the outbreak of the regional conflict, which led to temporary constraints across certain trade lanes and required operational adjustments across the network.

"Despite these conditions, the strength of the first two months of 2026, together with continued execution of the Accelerate28, helped mitigate the impact of disruption in March and supported stable quarterly performance. The Company maintained operational continuity across its global network, leveraging its diversified infrastructure, flexible routing capabilities, and coordinated response across markets, with employee safety and wellbeing remaining the priority throughout," he added.

Gross profit for the quarter stood at AED342.5 million, with a margin of 21.4%, compared to 23.3% in the prior year. This reflects the ongoing change in product mix, alongside elevated line-haul costs, fuel-related pressures, and continued investment in capacity across key markets, he added.

According to Aramex, the operating costs remained well controlled, with Group Selling, General and Administrative Expenses (SG&A) broadly in line with prior periods, reflecting disciplined cost management while continuing to invest in operational capabilities and transformation initiatives.

Ebit for the quarter stood at AED52 million, compared to normalised ebit of AED63 million in Q1 2025, reflecting underlying operational performance after excluding non-recurring items, and impacted by changes in product mix and higher cost base. Net Profit for the period was AED17 million, compared to Normalized Net Profit of AED 27.5 million in Q1 2025.

Geographically, the GCC and Indian subcontinent remained a core contributor to Group revenues, accounting for 46% of total revenues, supported by resilient demand for domestic and cross-border services, said the statement.

Looking ahead, Aramex enters the next phase of its journey with new leadership, renewed momentum, and a clear strategic direction, it added.