Alec held its ground in 1Q 2026, but logistics firms took a hit from the war

GMS earnings took the war hit

GMS earnings take a hit on the back of fleet suspension: Gulf Marine Services (GMS) saw its revenue slip 10% to USD 38 mn in 1Q 2026, as conflict in the Gulf led to a temporary suspension of part of its fleet, according to its financial release.

Fleet trimmed, revenues squeezed: The company’s operations were heavily affected by the ongoing regional war, with average fleet utilization dropping to 74% (from 89% a year earlier) after GMS temporarily evacuated four vessels from a GCC country as a precautionary measure. Despite the war drag, the group continued to expand its footprint, acquiring a new mid-class vessel in January and lifting its total fleet to 15. The purchase was partly financed through a USD 37.4 mn bridge loan, underscoring a strategy of selective growth even amid heightened operational disruption.

A strong start to the year offsets war disruption for Aramex

A strong start to the year helped Dubai-based logistics firm Aramex offset the disruption that hit regional trade flows in March, according to an earnings release (pdf). Net income came in at AED 17 mn, dipping just 1% y-o-y, while revenues rose 2% to AED 1.6 bn after momentum in January and February helped cushion the impact of weaker activity in the quarter.

Growth was led by domestic express revenues, which climbed 11% y-o-y, alongside a 9% rise in logistics revenues and 7% growth in freight forwarding. That helped offset weaker international express revenues, which fell 9% during the quarter.

Behind the results: Aramex said January and February had exceeded their expectations across key products and markets before the outbreak of regional conflict disrupted parts of its network and weighed on business activity across the Gulf. In March, some trade lanes faced temporary constraints, though the company maintained operational continuity by rerouting shipments and activating alternative gateways.

Geographically, the GCC and the Indian subcontinent still accounted for the lion’s share of revenues with 46%.

Alec’s 1Q net income more than doubles

A ramp-up in major projects across the UAE and Saudi Arabia led to a sharp income jump at Dubai-based construction firm Alec Holdings in 1Q 2026, according to its financials (pdf) and a separate earnings release (pdf). Net income more than doubled y-o-y to AED 230 mn, while revenues climbed 87% to AED 4.6 bn as the company converted more of its backlog into active project delivery across its building, energy, and specialist business lines.

The company said growth was supported by “steady project execution and delivery” across both markets, with its building and construction division remaining the largest contributor with revenues surging 116% y-o-y to AED 2.9 bn. Energy services revenues rose 74% to AED 1.5 bn, while related businesses grew 155% to AED 1.3 bn, helped by rising demand for specialized skills.

The company reiterated plans to distribute AED 500 mn in dividends for FY 2026, in line with its existing dividend policy.