Image: Aramex
Aramex reported group revenues of Dhs3.06bn for H1 2025, marking a 1 per cent year-on-year increase as strong performance in domestic and regional logistics offset continued declines in international express shipments.
The logistics and transportation company noted that customer behaviour is shifting towards regional and local solutions, a trend that has reshaped its business mix.
Domestic Express revenues rose 13 per cent year-on-year in H1, Logistics jumped 22 per cent, and Freight Forwarding increased 8 per cent, while International Express revenue dropped 15 per cent over the same period.
Profitability squeezed by product mix shift
The shift in demand came with pressure on profitability. Gross profit fell 6 per cent to Dhs 694m, and the group’s gross profit margin narrowed to 23 per cent from 24.4 per cent a year ago. International Express, a traditionally high-margin business, saw its gross profit drop by Dhs83m, offsetting gains in Domestic Express (+Dhs8m), Freight (+Dhs9m), and Logistics (+Dhs22m).
Group EBIT (earnings before interest and taxes) declined 45 per cent to Dhs 77m in H1 2025. Net profit came in at Dhs8m for the half-year, a sharp fall from Dhs49m in the same period last year. Aramex pointed to a combination of margin erosion and Dhs 26m in one-off costs related to its transformation programme and the acquisition of Q Logistics.
Excluding these exceptional items, normalised EBIT for H1 2025 stood at Dhs 95m, down 32 per cent year-on-year, while normalised net income was Dhs33m, down 34 per cent.
ADQ becomes majority shareholder
The company also confirmed that as of July 25, it became a subsidiary of Abu Dhabi’s ADQ, following the regulatory approval of ADQ’s acquisition of 63 per cent of Aramex shares through Q Logistics and Abu Dhabi Ports.
“Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs,” said acting group CEO Nicolas Sibuet. “While we face margin pressures and a changing product mix, we have taken decisive actions through our Accelerate28 strategy to realign operations and enhance our ability to better serve customers.”
Segment performance: Mixed outcomes
Domestic express: Revenues rose 13 per cent in H1 2025 to Dhs 853m, with gross profit increasing 5 per cent to Dhs 184m.
International express: Revenues dropped 15 per cent to Dhs 1.05bn, and gross profit fell 20 per cent to Dhs 324m.
Freight forwarding: Revenues climbed 8 per cent to Dhs 871m, with stable gross profit margins of 13 per cent, despite geopolitical disruptions. Segment volumes increased across all freight modes.
Logistics and supply chain: Revenues surged 22 per cent to Dhs 261m in H1. Gross profit more than doubled to Dhs 50m, reflecting improved warehouse utilisation and contract wins.
Volume trends reflect market dynamics
Total Express shipment volumes reached 67.6m in H1 2025, up 3 per cent year-on-year. Domestic Express volumes grew 9 per cent to 55.9m shipments, while International Express volumes declined 19 per cent to 11.7m.
Freight shipment volumes also showed growth:
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Air freight rose 8 per cent
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Sea freight (FCL) increased 13 per cent
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Sea freight (LCL) surged 35 per cent
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Land freight (LTL) was up 22 per cent
Q2 results reflected similar pressures. Revenues were flat at Dhs 1.50bn. Gross profit was Dhs 329m, down from Dhs 345m a year ago.
EBIT declined 66 per cent to Dhs16m, and net loss for the quarter stood at Dhs9m. Normalised EBIT and net income for Q2 were Dhs31m and Dhs5m, respectively.
Accelerate28 strategy underway
The Accelerate28 programme, launched in Q1 2025, is central to the company’s transformation. With more than 300 initiatives in progress across four newly defined regions, Aramex expects full EBIT impact by 2028.
The company said it remains committed to investing in long-term capabilities despite near-term profitability constraints.
The outlook
As of June 30, Aramex held Dhs542m in cash, with a debt-to-EBITDA ratio of 3.4x (including IFRS 16 adjustments).
The company said it remains financially positioned to continue its transformation and respond to shifting global logistics dynamics.
Read: How Aramex, Sprinklr are reimagining customer experience with AI
