ABU DHABI, UAE / ACCESS Newswire / April 27, 2026 / Ittihad International Investment LLC (“Ittihad” or “the Group”), a leading diversified industrial conglomerate in the UAE, today announced its financial results for the full year ended December 31, 2025.
Financial and Operational Highlights – FY 2025 vs FY 2024
■ The Group recorded USD 3.5 billion in revenue, up 4.3% year-on-year, and USD 179 million in adjusted EBITDA¹, up 22.0% year-on-year – representing growth on top of 6.0% growth in the prior year – with the adjusted EBITDA² margin expanding from 12.4% to 13.5%.
■ All three principal operating segments delivered year-on-year EBITDA growth, reflecting the breadth and resilience of the Group’s diversified portfolio:
o Consumer Goods Manufacturing (CGM): EBITDA grew 3.5% year-on-year, supported by the stabilization of chemicals earnings, despite pulp-related headwind in paper and a modest decline in tissue contribution.
o Infrastructure and Building Materials Manufacturing (IBMM): EBITDA increased 48.4% year-on-year, the third consecutive year of strong growth, driven by copper, steel, and cement demand, and a full year of contribution from the copper recycling plant.
o Business Services (BS): EBITDA increased 18.4% year-on-year, the third consecutive year of strong growth, driven by geographic expansion in utility services.
■ Gross leverage improved to 4.4x, maintaining the Group’s multi-year deleveraging trajectory from 6.0x in 2022, through 5.3x in 2023 and 4.7x in 2024. Net Debt to Adj. EBITDA3 stood at 3.1x
■ In a landmark year for the Group’s credit story, S&P and Fitch both upgraded Ittihad’s long-term issuer credit rating to BB- from B+, reflecting years of financial discipline and growing earnings power.
■ The Group executed two transformative bank financing and capital markets transactions: a USD 450 million sustainability-linked revolving credit facility closed in February 2025, and a USD 550 million 5-year 144A/Reg S Sukuk priced in November 2025, over four times oversubscribed, with 65% of allocation placed with international investors.
■ Free cash flow of USD 55.4 million was generated during FY 2025, after total capex spending of USD 90.3 million, including USD 80.1 million in growth capex, primarily for the new tissue mill in Saudi Arabia – on track to commence operations in Q2 2026.
■ Net cash and cash equivalents stood at USD 215.4 million as of December 31, 2025, with readily marketable copper inventories (RMI) of USD 236.5 million.
These results reflect the strength and maturity of Ittihad’s operating model, delivering record Group EBITDA through broad-based segment growth while simultaneously executing some of the most significant capital structure transactions in the Group’s history.
¹ Adjusted EBITDA is defined as net profit (loss) for the year / period from continuing operations plus finance costs, tax, depreciation, amortisation, changes in the fair value of derivative financial instruments, and gain on sale of assets.
² Adjusted EBITDA margin excluding the effect of hedged copper is defined as the mathematical result of dividing Adjusted EBITDA by the result of subtracting the LME copper price impact on revenue from total revenues.
3 Net Debt to Adjusted EBITDA comprises of total debt less cash divided by adjusted EBITDA.
CEO Amer Kakish said: “2025 marked another year of strong progress for Ittihad. We delivered a record Group EBITDA – with double-digit growth year-on-year – while simultaneously strengthening our balance sheet, extending our maturity profile, and earning a credit rating upgrade to BB- from both S&P and Fitch. What makes this result particularly meaningful is the context in which it was achieved: our largest segment, Consumer Goods Manufacturing, performed below its original budget expectations, yet the strength of Infrastructure and Building Materials and Business Services surged and more than offset that shortfall. That is another testimony of the portfolio diversification effects which continued to deliver its intended objectives of building a sustainable overall growth trajectory over the years. We closed a USD 450 million sustainability-linked revolving credit facility, successfully refinanced our USD 550 million sukuk generating savings on cost of debt by 2.5%. We enter 2026 with strong operational momentum, a materially stronger capital structure, and the financial flexibility to continue pursuing sustainable growth for our stakeholders.”
Segment Highlights
Consumer Goods Manufacturing (CGM)
CGM delivered EBITDA growth of 3.5% year-on-year to USD 60.1 million, with performance across the segment reflecting a mixed but net-positive picture. The Group’s chemicals business, which produces inputs used in detergents and household products, was the standout contributor, benefiting from stable raw material prices and strong regional FMCG demand.
In paper, EBITDA remained broadly flat year-on-year, posting modest growth of approximately 2%. Margins in the paper business remain below normalized levels, currently at approximately 14%, against a longer-term normalized range of 17-19%. This reflects the lagged impact of higher-cost pulp inventories that were cycled through production in H1 2025, against a backdrop of sharply declining spot pulp prices – down approximately 28% from April high to Q3 low, driven by new capacity additions in Latin America and cautious purchasing behavior in China.
Tissue EBITDA declined modestly by approximately 4%, reflecting the deliberate discontinuation of PM1, an older machine with annual capacity of approximately 12,000 tons, as part of the Group’s ongoing efficiency optimization. The decision, while dilutive to EBITDA in the near term, is expected to improve the segment’s operational cost profile on a per-ton basis going forward.
Infrastructure and Building Materials Manufacturing (IBMM)
IBMM was the standout segment of 2025, delivering EBITDA growth of 48.4% year-on-year to USD 72.3 million, the third consecutive year of strong earnings expansion, driven by structural demand tailwinds across copper, steel, and cement.
Copper EBITDA grew approximately 22% year-on-year, driven by the first full-year contribution of the copper recycling plant commissioned in Q4 2024. The plant has delivered meaningful cost efficiencies within the copper rod mill, improving margins across the segment. Demand for copper products remained robust, underpinned by the global clean energy transition, the expansion of AI data centre infrastructure, and continued GCC infrastructure upgrades and network expansions.
Building materials – steel and cement, delivered sales growth of more than 30% year-on-year, driven by both volume and prices. The UAE construction sector continued to provide a strong demand backdrop, with large-scale residential, commercial, and infrastructure developments driving sustained consumption of core construction materials. Sustained project pipelines, high capacity utilization, and government-led investment in mega projects and real estate development reinforced this trend throughout the year.
Business Services
Business Services delivered EBITDA growth of 18.4% year-on-year to USD 57.5 million, marking the third consecutive year of strong earnings expansion. The segment’s performance was driven principally by approximately 32% growth in utility and waste management EBITDA, reflecting geographic expansion of the Group’s sewage network services across the Emirate of Abu Dhabi.
The increase in demand for sewer manhole construction and maintenance is primarily driven by ongoing urban expansion and the rehabilitation of ageing infrastructure. Rapid development of residential communities, industrial zones, and large-scale masterplans continues to require the extension of sewer networks, where manholes are essential components for system connectivity and access. In parallel, municipalities are accelerating the upgrade and replacement of ageing sewer systems to address capacity constraints. Together, these dynamics are driving both new installations and recurring maintenance-related work, supporting sustained earnings growth within the segment.
Waste management services EBITDA also contributed to the segment’s expansion, with further extension of a key contract generating additional cost efficiencies.
Healthcare and Other
The Healthcare and Other segment posted a decline of USD 2.3 million year-on-year to negative 740.9 thousand, reflecting continued market contraction in medical consumables trading and the deliberate scaling back of certain operations to optimize capital deployment. The Group has retained its strategic distributorship agreements, preserving optionality for future growth opportunities.
Capital Structure and Credit Profile
The Group continued its multi-year deleveraging trajectory in 2025, with Gross Debt/Adjusted EBITDA improving to 4.4x, continuing the steady reduction from 6.0x in 2022, through 5.3x in 2023 and 4.7x in 2024. This consistent improvement reflects both disciplined financial management and the compounding earnings growth delivered across the Group’s operating segments.
A defining milestone of 2025 was the upgrade of Ittihad’s long-term issuer credit rating to BB- from B+ by both S&P and Fitch. This achievement reflects years of consistent financial discipline, deliberate deleveraging, and the growing earnings power of the Group’s diversified portfolio.
2025 was equally active on the bank and debt capital markets front, with the Group executing two landmark transactions that materially strengthened its capital structure and extended its debt maturity profile.
In February 2025, Ittihad successfully closed a USD 450 million senior unsecured sustainability-linked revolving credit facility (RCF), significantly strengthening its liquidity position and optimizing its capital structure. This leverage-neutral transaction marks a strategic milestone, supporting the Group’s long-term growth plans and aligning with its commitment to responsible finance.
In November 2025, Ittihad successfully priced a USD 550 million 5-year (non-call 2) 144A/Reg S Sukuk at a 7.375% coupon – the Group’s return to the international bond markets and a further demonstration of growing global confidence in Ittihad’s credit story. The transaction was over four times oversubscribed, with 65% of the final allocation placed with international investors, and the strength of demand enabled the Group to price 50 basis points tighter than IPTs.
Together, these two transactions position the Group with a stronger, more diversified funding base as it continues to pursue its growth agenda.
Outlook
Looking ahead, and despite the challenges that the closure of Strait of Hurmoz has imposed, the Group still expects to deliver another year of earnings growth in 2026, extending three consecutive years of compounding EBITDA expansion. Across our core segments, the operating environment remains supportive. Consumer Goods is positioned for meaningful growth, driven by favourable tissue pricing dynamics, the incremental contribution from commissioning of the new Saudi Arabia tissue mill in Q2 2026, and an upbeat momentum in chemicals performance. Infrastructure and Building Materials continues to demonstrate strong adaptability post recent geopolitical developments, with copper, steel, and cement all benefiting from supportive regional demand and pricing conditions. Business Services remains anchored by long-term government contracts that provide strong and stable earnings visibility.
Beyond 2026, the Group is advancing its strategic forward integration into B2C consumer markets, with two converting facilities under development in Saudi Arabia, a tissue and hygiene products facility and a printing and writing paper converting operation, all expected to be operational in 2027. These investments mark a further extension of the Group’s value chain, leveraging on its robust raw material production capabilities to capture higher-margin products and penetrate the branded consumer space across the MENA region.
The Group enters this next phase from a position of financial strength, supported by an optimized capital structure and a diversified funding base to further pursue its growth agenda with confidence.
-Ends-
About Ittihad
Ittihad is a privately owned business founded in 2008 and headquartered in Abu Dhabi, with investments in the UAE, Saudi Arabia, and Egypt. The Group exports products and services to over 50 countries worldwide. It has a talented team of more than 10,800 members from over 50 nationalities with sector-wide expertise and a commitment to operational excellence. Since 2015, Ittihad has pursued a strategy of investing in businesses with leading domestic positions in the UAE and the Gulf Cooperation Council (GCC), as well as strong international export potential. The Group focuses on long-term investments, structured for business to business (B2B) exports and is designed to capture the unique value-proposition offered by the UAE and the region. Ittihad is committed to powering wealth creation through assets that balance profitability with sustainability and generate positive outcomes for stakeholders, society, and the planet.
Media Contacts
Wasfi Al Tayara
Corporate Finance and Investor Relations Manager
investor.relations@ittihadinvestment.ae
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SOURCE: Ittihad International Investment LLC
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