Aramex reported resilient first-quarter growth for 2026, supported by strong demand for domestic delivery, freight forwarding and logistics services, even as regional geopolitical tensions disrupted trade flows and business confidence across the Gulf in March.
The Dubai-listed logistics and transportation company said Q1 revenues rose 2 per cent year-on-year to Dh1.6 billion, reflecting sustained momentum in key business segments and the company’s ability to maintain operational continuity during a challenging quarter.
The performance came against the backdrop of heightened regional instability that affected parts of the Middle East logistics network, forcing companies to reroute shipments and adapt supply chains amid disruptions to trade lanes.
Aramex said Domestic Express revenues climbed 11 per cent during the quarter, while Freight Forwarding rose 7 per cent and Logistics expanded 9 per cent. The gains helped offset a 9 per cent decline in International Express operations, which faced pressure from softer cross-border trade flows and disruptions linked to regional conflict.
The company said the quarter began strongly after recording its highest-ever monthly revenue in December 2025, with January and February continuing to outperform expectations across several markets and product lines.
Growth in Oceania and Africa also contributed positively, with management highlighting operational improvements and stronger shipment volumes across the network.
However, momentum slowed in March after the outbreak of regional conflict triggered operational disruptions across parts of the Gulf and wider Middle East, affecting trade activity and customer sentiment.
“Absent the disruption in March, the quarter would have reflected stronger overall growth,” the company said in its earnings statement.
Despite the disruptions, Aramex said it maintained full operational continuity across its global network by leveraging flexible routing capabilities and diversified infrastructure while prioritising employee safety and customer service.
Nicolas Sibuet, acting group chief Executive officer during the quarter, said the company entered 2026 “on a strong footing” following a record December and robust start to the year.
“The operating environment became more complex in March with the outbreak of regional conflict disrupting trade activity and business confidence across the Gulf,” Sibuet said.
“Our teams responded with speed, adapting routes and leveraging our network flexibility to maintain service delivery.”
He said the company’s Accelerate28 transformation programme had already started delivering tangible cost efficiencies and operational improvements across the business.
Aramex’s gross profit stood at Dh342.5 million during the quarter, with margins easing to 21.4 per cent from 23.3 per cent a year earlier due to higher fuel costs, elevated line-haul expenses and continued investment in operational capacity.
Earnings before interest and tax (EBIT) fell to Dh52 million compared with normalized EBIT of Dh63 million in the same period last year, while net profit declined to Dh17 million from normalized net profit of Dh27.5 million in Q1 2025.
The GCC and the Indian subcontinent remained the company’s largest revenue contributor, accounting for 46 per cent of total group revenues, supported by resilient demand for domestic and cross-border delivery services.
The company also strengthened its balance sheet during the quarter by refinancing around Dh815 million of debt from the United States and United Kingdom into a UAE-based sustainability-linked financing facility.
Aramex said the refinancing would lower its cost of capital and reinforce its long-term financial flexibility amid evolving market conditions.
The company’s results come as the global logistics industry continues to navigate geopolitical tensions, supply chain disruptions and volatile shipping costs following instability in key trade corridors, including the Strait of Hormuz and the Red Sea.
Industry analysts say logistics companies with diversified networks, regional flexibility and strong domestic delivery businesses are better positioned to weather geopolitical shocks and shifting trade patterns.
Amadou Diallo, who assumed the role of group chief executive officer on May 1, said the company remained focused on disciplined execution and long-term growth.
“The first quarter of 2026 underscores the resilience of our business and the strength of our network,” Diallo said.
“As we look ahead, we remain focused on accelerating our strategic priorities and delivering sustainable value across our operations.”
