IHC Nine-Month Profit Jumps 87% to Dh32.3 Billion as International Revenue Doubles

Earnings per share climbed 129.6% to Dh9.70, profit before tax rose 84.2% to Dh35.3 billion and gross profit increased 35.4% to Dh25.3 billion. Return on equity was 20.8%.

The results matter beyond the Abu Dhabi bourse because IHC has become one of the Gulf's most active backers of frontier technology. It holds stakes in SpaceX, OpenAI, Anthropic and Cerebras, and a significant share of this year's profit came from investment income booked in its Financial Services segment rather than from its operating businesses. The seven segments outside Financial Services together raised profit 37.5% to Dh12.5 billion.

Chief executive Syed Basar Shueb said seven of the group's eight business segments recorded revenue growth. "With seven of our eight business segments recording revenue growth and international revenue more than doubling, these results highlight the resilience and breadth of our businesses and their growing contribution across markets," he said. He added that the group would stay focused on financial discipline and selective capital deployment, and that its investments in AI, space technology, energy and mining, infrastructure and financial services were helping it build what it calls "Dynamic Value Networks".

Real Estate and Construction remained the largest contributor, with revenue up 12.8% to Dh33.4 billion. Marine and Dredging followed at Dh22.4 billion, up 3.7%.

The fastest growth came from Energy and Mining, where revenue rose 295.1% to Dh19.5 billion on expanded trading in minerals, metals and hydrocarbons. Hospitality and Leisure revenue grew 93.7% to Dh7.7 billion and Financial Services revenue rose 53.7% to Dh4.4 billion. Food revenue increased 25.7% to Dh5.1 billion, and Technology revenue grew 20.5% to Dh2.9 billion.

During the period IHC put about Dh25 billion into associates, joint ventures, financial assets and investment properties. It also signed acquisition and investment agreements involving Marlan Holding RSC Ltd, Pakistan's First Women Bank Limited and India's Adani Group, among others.

That spending pushed net debt up to Dh30.5 billion, which the company said reflected financing raised for its investment programme. Total assets rose 13.4% to Dh485.5 billion and total equity increased 9.9% to Dh275.1 billion, with owners' equity up 11.5% to Dh170.4 billion. Cash and bank balances stood at Dh76.4 billion at the end of September, and the group reported a quick ratio of 2.6 times and a debt-to-equity ratio of 0.4 times.

IHC is also returning cash to shareholders. In June it launched the first tranche, worth about Dh1.8 billion, of its second $1.36 billion share buyback programme, and by September 30 it had repurchased about 1.9 million shares for Dh705 million.