Salik Company PJSC, the exclusive operator of toll gates in Dubai, reported a third-quarter net profit of AED 341.1 million, reflecting an 8.5% decline compared to the same period last year. This decrease occurred alongside a revenue drop of 5.7%, totaling AED 705.3 million. However, both metrics showed improvement over the second quarter, with revenue rising by 3.2% and net profit increasing by 1.9%. This recovery is significant as it indicates a rebound in traffic and toll income, which had previously suffered during the second quarter.
In the third quarter, toll usage fees generated AED 607.3 million, down 7.3% from AED 655.2 million a year earlier, but up 5.2% from the previous quarter. The total number of trips through Salik gates reached 194 million, a 5.0% decrease from 204.2 million in the same quarter of 2025, yet an increase of 4.0% from the second quarter. Chargeable trips also fell by 7.4% to 140.8 million, with peak-hour trips, which are charged at AED 6, declining by 5.4% to 52.3 million.
Financial Performance and Operational Insights
Salik’s EBITDA for the quarter was AED 474.0 million, representing an 8.6% decrease from the same quarter last year, with an EBITDA margin of 67.2%, down from 69.4%. The company attributed this decline to a rise in concession fees, which increased to 23.1%, alongside higher operating and employee costs. Free cash flow improved significantly, reaching AED 494.6 million after an outflow of AED 85.4 million in the previous quarter.
Chief Executive Ibrahim Sultan Al Haddad noted that traffic levels were recovering, stating, “September was our busiest month for traffic since February.” This uptick in activity is crucial for Salik as it navigates the challenges posed by fluctuating toll revenues and operational costs.
Year-to-Date Performance and Future Projections
For the first nine months of the year, Salik reported revenue of AED 2,117.3 million, down 6.9% from AED 2,275.0 million in the same period last year. Net profit for this period was AED 1,045.1 million, an 8.6% decrease from AED 1,143.8 million. The company also reported a net debt of AED 4,606.9 million, which is AED 192.3 million lower than at the start of the year, with a net debt to EBITDA ratio of 2.29 times.
Looking ahead, Salik anticipates revenue growth of 6% to 8% for the 2027 financial year, with an EBITDA margin projected between 69.5% and 70.5%. The company plans to distribute cash dividends amounting to 100% of net profit, pending board approval.
Technological Developments and Partnerships
During the quarter, Salik launched a parking payment service at the Harbour West Car Park, allowing drivers to pay for parking through their Salik accounts. This initiative follows a partnership agreement with Shamal signed in July. Additionally, Salik renewed its technology partnership with TransCore for another five years, although the financial impact of this renewal is not expected to differ materially from the previous contract.
As Salik continues to adapt to changing traffic patterns and operational challenges, its focus on technological enhancements and strategic partnerships will be crucial for sustaining growth and profitability in the competitive tolling landscape.
For further details on Salik’s financial performance, you can refer to the full report on Dubai Week.
For more insights into technology trends and developments, visit FAME Delivered’s technology section.
