Salik posts AED 704m net profit in H1 2026 as revenues dip; active accounts climb to 2.9m
Salik reports H1 2026 net profit of AED 704 million and AED 1.412 billion in revenue, citing resilient margins and growth in active accounts as traffic begins to stabilise.
Salik, the exclusive operator of Dubai’s road toll network, reported a net profit of AED 704 million for the first half of 2026, the company said on Wednesday. Revenues for the period were AED 1.412 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) reached AED 975.6 million, underscoring strong profitability despite a year‑on‑year revenue decline.
H1 2026 financial highlights
Salik recorded a net profit margin of 49.9% for H1 2026 and an EBITDA margin of 69.1%, reflecting continued operational efficiency. Reported revenues fell 7.5% compared with the same period last year, and EBITDA declined by 8.4%, leading to an 8.7% drop in net profit year‑on‑year.
The company also reported profit before tax of AED 773.6 million and free cash flow of AED 551.0 million, representing a 39.0% free cash flow margin. Management emphasised that margins remain robust even as top‑line growth faces short‑term pressure.
Traffic volumes and user growth
Total recorded trips through Salik gates in H1 were 383.8 million, a 9.5% decrease from the prior year, with 278.5 million of those trips subject to toll charges. The decline in trip volumes was partially offset by rising account penetration across Dubai.
Active Salik accounts increased by 6.6% to 2.9 million during the period, demonstrating expanding consumer adoption and stickiness in the user base. Company executives pointed to improving traffic patterns in Q2, with June nearing more normalised activity compared with the same month last year.
Revenue mix and additional income streams
Toll usage revenues accounted for the bulk of receipts at AED 1.2025 billion in H1 2026. Revenues from traffic fines rose 7.5% to AED 144.4 million, while card activation revenue climbed 8.1% to AED 24.8 million, reflecting higher account sign‑ups and system utilisation.
Other income totalled AED 17.2 million and was supported by parking services and newly established commercial partnerships. Management highlighted efforts to diversify the revenue mix as part of a deliberate strategy to reduce reliance on core toll income over time.
Liquidity position and leverage metrics
Salik reported net debt of AED 5.039 billion as of June 30, 2026, with a net debt to EBITDA ratio of 2.45 times. That leverage level remains well below the company’s maximum debt covenant of five times, giving the firm headroom for investment and strategic initiatives.
Cash generation remained strong, supported by the sizeable free cash flow reported for the half year. Executives noted that disciplined financial management and robust margins underpin the company’s ability to service debt while pursuing growth opportunities.
Commercial expansion and strategic partnerships
During the first half, Salik accelerated its commercial expansion by rolling out an electronic payment agreement for Dubai Airports parking and expanding collaboration with Valtrans across more than 100 sites nationwide. The company also signed memoranda of understanding with Shamal Holding to operate digital payments at Dubai Harbour parking and with Dubai’s integrated economic zones authority (DIEZ) to deliver smart mobility solutions across more than 21,000 parking spaces.
Salik is also developing new services including electric vehicle charging solutions and integrated fuel payment systems, as it seeks to capitalise on shifts in urban mobility and payment behaviour. Executives said these initiatives are intended to broaden service offerings and create recurring revenue beyond traditional tolling.
Management response and outlook
Matar Al Tayer, Salik’s chairman, described the H1 results as evidence of the company’s resilient business model and disciplined operational execution, praising Dubai’s economic momentum as a supportive backdrop. He underscored the balance between revenue generation and high profitability, as well as the rise in active accounts as a sign of growing customer trust.
Chief Executive Ibrahim Sultan Al Haddad pointed to a gradual recovery in traffic during the second quarter and reiterated the company’s long‑term strategy to enhance shareholder value through investment in new services and operational efficiency. Management said they expect continued progress on partnerships and product rollouts through the remainder of 2026.
Salik’s performance in the first half of 2026 demonstrates a company navigating slower volumes while preserving high margins, expanding its customer base and diversifying income sources to capture future mobility revenue.
