NMDC Energy Revenue Rises 9% to $3.87B as Profit Falls 56% on Costs

NMDC Energy raised revenue 9% year on year to $3.87 billion (AED 14.2 billion) in the first nine months of 2026, but net profit dropped 56% to $114.4 million (AED 420 million) as logistics, insurance and fuel costs climbed.

The UAE-headquartered contractor kept the top line moving on continued project execution despite regional disruption. Profitability did not follow. EBITDA fell 34% to $228.7 million (AED 840 million), narrowing the margin to 5.9% from 9.7% a year earlier. Net margin slid to 3% from 7.3%. The results were released on Tuesday.

The third quarter showed the same split. Revenue slipped 2% year on year to $1.3 billion (AED 4.73 billion), though it rose 5% from the previous three months. Quarterly net profit fell 54% to $46 million (AED 169 million), against $100.2 million (AED 368 million) in the same period a year earlier. EBITDA for the quarter came to $79.2 million (AED 291 million), down 38%, a decline the company attributed to higher logistics, insurance and fuel expenses amid regional geopolitical tensions.

UAE operations generated 72% of revenue. International markets supplied the remaining 28%.

New work kept coming in. NMDC Energy booked about $708 million (AED 2.6 billion) in awards during the nine months, including offshore engineering, procurement and construction for an undisclosed UAE client and a diesel pipeline project for Emirates Water and Electricity Company (EWEC). Backlog stood at $8.1 billion (AED 29.8 billion) at the end of September and rose to $9 billion (AED 33 billion) once awards made through 25 October are counted. The company put its prospective pipeline at $21.9 billion (AED 80.4 billion), covering submitted and planned tenders, expressions of interest and future opportunities.

Cash thinned over the period. Balances fell 34% from the end of 2025 to $805.4 million (AED 2.96 billion) at 30 September, after dividend payments, supplier settlements, tax obligations and debt repayments. Operating cash flow turned negative at $28.6 million (AED 105 million). Free cash flow was negative $113.8 million (AED 418 million), compared with $88.8 million (AED 326 million) a year earlier. Capital expenditure reached $85.5 million (AED 314 million), mainly for construction of a Saudi Arabian fabrication yard, upgrades to UAE facilities and equipment purchases.

NMDC Energy is a majority-owned subsidiary of NMDC Group and provides engineering, procurement and construction services for offshore and onshore energy developments. It runs four fabrication yards across the UAE and Saudi Arabia, and holds manufacturing partnerships with Energy Masters, Borouge, Neway Valve and Wasco Energy aimed at widening domestic industrial capability. The company placed 82nd on a 2025 ranking of the region's top 100 listed companies. Its parent came second on a 2026 list of top 10 construction companies and 93rd among the 100 most valuable companies for 2026.

The order book gives NMDC Energy volume to convert over the coming quarters. What it does not settle is the price of doing the work. With fuel, freight and insurance costs still pressuring margins, and operating cash flow in negative territory, recovery in project margins and cash generation is the measure to watch as existing contracts move through the yards.