Aramex Q3 profit steady as domestic and regional logistics drive growth

13/11/2025 02:48 AST

Aramex reported stable third-quarter earnings, supported by growth in its regional logistics and domestic express operations, even as global trade shifts toward nearshoring continued to weigh on international express volumes.

The company posted revenues of Dh1.6 billion in the third quarter of 2025, unchanged from a year earlier. Growth in Domestic Express (up 5%), Freight Forwarding (up 4%), and Logistics (up 16%) offset a 9% decline in International Express revenues.

Normalised EBIT rose 9% year-on-year to Dh74 million, while normalized net profit held steady at Dh27 million, reflecting Aramex's continued focus on cost discipline and operational efficiency during its ongoing business transformation.

Shift toward regional logistics
Aramex's latest results highlight a broader trend across global supply chains, as brands and manufacturers reposition inventory closer to end markets. This transition has strengthened demand for regional transport and logistics services, areas where Aramex has expanded aggressively.

Domestic Express, driven by robust e-commerce growth in the GCC and MENAT regions, continued to outperform, while Logistics remained the fastest-growing segment, delivering strong revenue and profit gains.

Although Logistics remains a smaller contributor to total revenues, its profitability surged as Aramex improved contract quality, expanded warehouse utilization in the UAE, Saudi Arabia, and Egypt, and focused on specialized value-added services such as fulfillment and supply chain solutions.

Growth across business lines
Domestic Express revenue rose 5% in Q3 and 10% over the nine-month period, supported by higher shipment volumes and sustained regional e-commerce demand.

International Express fell 9% in Q3 and 13% for the nine-month period, reflecting the impact of nearshoring and a reduction in long-haul shipment flows.

Freight Forwarding posted revenue growth of 4% in Q3 and 6% over nine months, driven by double-digit increases in air, sea, and land freight volumes.

Logistics and Supply Chain Solutions achieved 16% growth in Q3 and 20% for the nine-month period, with margins improving to 20%.

Group gross profit for the nine months stood at Dh1.06 billion, down 4% year-on-year, as product mix changes and inflationary cost pressures moderated margins to 23%.

Transformation, outlook
Aramex's ongoing Accelerate28 transformation program, launched earlier this year, includes more than 300 initiatives across nine workstreams, targeting full EBIT impact by 2028. The program is designed to streamline operations, enhance digital capabilities, and reinforce the company's shift toward regional logistics leadership.

Acting Group CEO Nicolas Sibuet said the results reflected the strength of Aramex's diversified business model and its ability to adapt to structural changes in global trade.

"We are seeing consistent growth in local and intra-regional activity, which now anchors our regional strategy," Sibuet said. "This transformation in our revenue mix underscores our success in positioning Aramex as a leading regional logistics provider. Through Accelerate28, we are building an agile, digitally enabled organization prepared for sustainable long-term growth."

Global logistics refocus
Aramex's results come amid a global logistics realignment driven by regionalization, regulatory shifts, and capacity adjustments in international trade.

The company's focus on the Middle East and adjacent markets, coupled with investments in logistics infrastructure and technology, positions it to benefit from growing intra-regional trade and e-commerce demand.

While nearshoring trends have reduced long-haul express volumes, Aramex's expansion in domestic networks and contract logistics has provided a stabilizing counterbalance, supporting profitability despite macroeconomic and cost pressures.

Gulfnews