NMDC Group’s 3Q net income falls 24% as costs bite

Higher costs are eating into NMDC Group’s earnings even as revenue holds steady: The Abu Dhabi-based marine and energy contractor’s bottom line fell 24% y-o-y to AED 768 mn in 3Q 2026, while its top line edged up 1% to AED 7.3 bn, according to its earnings results (pdf). For 9M, net income declined 14% to AED 2.4 bn, while its revenue grew 4% to AED 21.4 bn. The group linked a 7% drop in 9M EBITDA to cost overruns, including higher ins., logistics, and fuel prices, which it tied to regional unrest.

Energy generates most of NMDC’s revenue, while dredging generates most of its net income. NMDC Energy accounted for 66% of 9M revenue and 18% of net income, with its revenue up 9%. NMDC Dredging & Marine accounted for 34% of 9M revenue and 82% of net income, and its 9M net income rose 8% y-o-y. In 3Q, Dredging & Marine accounted for 35% of revenue and 78% of net income. UAE operations made up 78% of 9M revenue, with international markets at 22%.

NMDC is spending on its fleet and yards. The Group spent AED 846 mn on capex in 9M, including an advance payment on a new cutter suction dredger and upgrades to NMDC Energy’s yards in the UAE and Saudi Arabia. In October, it inaugurated the Abu Al Bakhoush in Nantong, China, a cutter suction dredger that can dredge to 38 m for rock cutting, trenching, and port infrastructure work. The vessel joins a fleet of more than 170 vessels and marine units, the Group said in a press release.

New awards slowed, but October’s energy orders lifted the backlog. NMDC won AED 9.7 bn in new awards in 9M, down 11% y-o-y: AED 4.9 bn in dredging and marine, AED 2.6 bn in energy, and AED 2.2 bn in infrastructure. Its backlog stood at AED 51.3 bn at end-September and rose to AED 54.1 bn after NMDC Energy secured AED 2.8 bn in new orders in October, about 2.5 times 9M revenue by our math. Like revenue, the backlog leans toward energy, which makes up 60% of it (dredging and marine 34%, infrastructure 6%). The Group expects to execute AED 6.9 bn in the rest of 2026, AED 23.2 bn in 2027, and AED 15.4 bn in 2028.