Aramex has reported stable revenues for the first half of 2025, as the Dubai-listed logistics group pressed ahead with a sweeping transformation programme aimed at positioning the company for long-term growth.
The firm posted group revenues of AED 1.50bn for the second quarter, unchanged from the same period in 2024, while half-year revenues rose 1% to AED 3.06bn. Gains in domestic and regional markets offset weaker international flows as global supply chains continued to shift towards nearshoring.
Acting Group Chief Executive Nicolas Sibuet said the results reflected “consistent execution” despite margin pressures. He pointed to Aramex’s Accelerate28 strategy and a new partnership with Abu Dhabi’s ADQ as key drivers for its operational overhaul.
“Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs,” Mr Sibuet said. “We are enhancing our ability to serve customers across key markets and lay the groundwork for sustainable, long-term value creation.”
Regional growth offsets softer global trade
In the Gulf, Aramex recorded double-digit growth in revenue and gross profit for Q2, with Asia-Pacific delivering single-digit gains. These gains offset weaker performances in other international markets.
Domestic Express and Logistics segments led growth, with revenues up 12% and 23% respectively in Q2. International Express, however, fell 16% in the same period as customers shifted shipments from long-haul to regional routes. Freight Forwarding revenue climbed 7%, driven by increases in air, sea, and land volumes.
Margins under pressure
Group gross profit for H1 reached AED 694m, representing a 23% margin, down from 24% a year earlier. The second quarter margin stood at 22%, reflecting higher direct costs in growth markets, changes in product mix, and inflationary pressures.
Selling, general, and administrative expenses rose 3% year-on-year in Q2, although normalised costs — excluding one-off transformation expenses — were down 2%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 20% in H1 to AED 252m, while net profit for the half dropped to AED 8m. Q2 saw a net loss of AED 9m, largely due to one-off costs linked to the ADQ deal and restructuring.
Accelerate28 underway
Launched in early 2025, the Accelerate28 programme spans nine workstreams across regions, products, and functions, with more than 300 initiatives planned. Aramex expects the full earnings impact by 2028.
Segments such as Logistics and Supply Chain Solutions posted strong growth, with Q2 gross profit more than doubling year-on-year to AED 27m, aided by near-full warehouse utilisation and new client wins.
Aramex closed the first half with AED 542m in cash and a debt-to-EBITDA ratio of 3.4x, providing what it described as a “solid foundation” for investment in strategic areas.
