Ittihad Achieves Record EBITDA Growth, Investing in Future
Ittihad Reports Impressive H1 EBITDA Growth
Ittihad International Investment LLC, renowned as a leading diversified industrial conglomerate in the UAE, has revealed its financial results for the latest half-year period. During this time, Ittihad demonstrated a remarkable surge in its performance, marking a pivotal moment for the company.
Financial Highlights and Performance Metrics
The financial results indicate that the Group achieved revenues of USD 1.68 billion, showcasing an increase of 3.3% year-on-year. In addition, adjusted EBITDA rose significantly to USD 82.9 million, representing a 12.6% enhancement from the previous year, with an adjusted EBITDA margin of 13.3% persisted since the first half of 2024. This stability reflects the Group's resilience and strategic management.
Strong Performance in Business Services
The Business Services segment has exhibited robust growth, particularly through utility and healthcare services. With a strong backlog of projects, utility services have secured a dependable revenue stream for future growth. In healthcare, a newly launched digital platform has streamlined appointment management, improving efficiency for providers and patients while promoting a new revenue stream through technology fees.
Expansion in Infrastructure and Building Materials
Robust demand for copper, steel, and cement has propelled the Infrastructure and Building Materials segment forward, contributing to its continued increase in EBITDA. The construction industry benefits from a surge in activities, backed by significant investments in mega projects aimed at boosting regional infrastructure.
Cash Flow and Financial Stability
During the first half of 2025, the Group generated USD 53.7 million in free cash flow, while total capital expenditures reached USD 17.6 million. This included preparations for a new tissue mill in Saudi Arabia, which is a significant growth project. Moreover, as of June 30, 2025, net cash and cash equivalents stood at USD 182.0 million, reflecting solid liquidity health.
Commitment to Sustainability and ESG Initiatives
In line with its sustainability goals, Ittihad has made substantial progress during the first half of 2025. The Company has focused on enhancing environmental practices and ensuring effective health and safety training for its employees, achieving over 14,000 training hours while promoting renewable energy initiatives. These efforts coincide with the Group's commitment to transparency and proactive environmental stewardship.
Future Outlook and Prospects
The Management anticipates that the second half of 2025 will see sustained performance due to ongoing growth in critical business segments, coupled with new product introductions to the market. Notably, the construction timeline for the new tissue mill in Saudi Arabia remains on track, with operations expected to commence in early 2026.
Hit by Market Fluctuations
Despite the overall positive performance, the Consumer Goods Manufacturing segment experienced a decline in EBITDA due to the challenges presented by high inventory levels and competitive market pressures. However, the Company expects a recovery as current prices stabilize, allowing for improved margins in the near future.
About Ittihad International Investment
Ittihad is a privately held entity founded in 2008 and is headquartered in Abu Dhabi. The company has diversified investments across the UAE, Saudi Arabia, and Egypt, exporting products and services globally. The Ittihad team comprises over 8,000 professionals from diverse backgrounds, committed to driving industry excellence and innovation.
Frequently Asked Questions
What drove Ittihad's EBITDA growth in H1 2025?
Key drivers include strong performance in utility services and healthcare, alongside regional demand for core materials like copper and steel.
How does Ittihad's strategy support sustainability?
Ittihad integrates sustainability into its operations by promoting renewable energy and reducing its carbon footprint while enhancing safety training.
What are Ittihad's plans for the new tissue mill?
The new tissue mill in Saudi Arabia is expected to launch operations in early 2026, contributing significantly to growth.
What challenges has the Consumer Goods segment faced?
The Consumer Goods segment faced pressures from high inventory costs and market competition, leading to a temporary decline in EBITDA.
What is the overall outlook for Ittihad in H2 2025?
The outlook remains positive, with expectations of continued growth driven by strategic initiatives and key market expansions.
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