Ittihad's Diversified Model Drives Record Profit Amid Regional Boom

ABU DHABI, United Arab Emirates – April 27, 2026 – Ittihad International Investment, a leading Abu Dhabi-based industrial conglomerate, announced a record-setting performance for 2025, posting a 22 per cent surge in adjusted EBITDA to USD 179 million. The results underscore the power of its diversified business model, which successfully navigated market headwinds and capitalized on a booming regional economy.

The group's revenue climbed 4.3 per cent year-on-year to USD 3.5 billion, but the standout story lies in how this growth was achieved. While its largest segment, Consumer Goods, faced challenges, explosive growth in infrastructure and business services more than compensated, showcasing a strategic resilience that has won the confidence of international credit markets and investors.

A Diversified Engine of Growth

The 2025 results provide a compelling case study in portfolio diversification. The standout performer was the Infrastructure and Building Materials Manufacturing (IBMM) segment, which saw its EBITDA skyrocket by an impressive 48.4 per cent to USD 72.3 million. This marks the third consecutive year of strong growth for the division, which is riding a wave of massive regional development.

This performance is directly underpinned by a construction and infrastructure boom across the GCC. Demand for steel and cement surged throughout 2025, fueled by ambitious national development plans like Saudi Vision 2030 and the UAE's own Urban Master Plan 2040. Mega-projects such as NEOM and the continued expansion of residential and commercial real estate have created sustained, structural demand for core building materials. Copper demand also remained robust, driven not only by construction but also by the global clean energy transition and the expansion of AI data centre infrastructure. The segment's profitability was further enhanced by the first full-year contribution from its copper recycling plant, which delivered significant cost efficiencies.

The Business Services segment also delivered a powerful performance, with EBITDA growing 18.4 per cent to USD 57.5 million. This was primarily driven by the geographic expansion of its utility services, particularly sewage network construction and maintenance across Abu Dhabi. As the emirate undergoes rapid urban expansion, the need for both new installations and the rehabilitation of ageing infrastructure has created a steady stream of high-value contracts.

In contrast, the Consumer Goods Manufacturing (CGM) segment saw more modest EBITDA growth of 3.5 per cent. Performance was mixed, with a strong contribution from its chemicals business—which produces inputs for detergents—offsetting headwinds in paper and tissue. The paper business faced margin pressure from higher-cost pulp inventories, while the tissue division's contribution declined slightly following the deliberate decommissioning of an older, less efficient machine. However, CEO Amer Kakish noted the overall result was a "testimony of the portfolio diversification effects which continued to deliver its intended objectives."

Fortifying the Financial Foundation

Beyond the operational success, 2025 was a landmark year for Ittihad’s balance sheet and credit story. The company continued its multi-year deleveraging trajectory, with its gross debt to adjusted EBITDA ratio improving to 4.4x, a significant reduction from 6.0x in 2022 and 5.3x in 2023.

This consistent financial discipline, coupled with growing earnings power, earned the conglomerate a significant vote of confidence from the world’s leading credit rating agencies. In late 2025, both S&P Global Ratings and Fitch Ratings upgraded Ittihad’s long-term issuer credit rating to ‘BB-’ from ‘B+’, citing the improving leverage metrics and the strength of its diversified business model. S&P noted the company’s liquidity had improved to "adequate" and projected a strong rebound in free cash flow for 2026.

This improved credit profile paved the way for two transformative capital markets transactions. In February 2025, Ittihad closed a USD 450 million sustainability-linked revolving credit facility, strengthening its liquidity. This was followed in November by a highly successful return to the international bond markets with a USD 550 million 5-year Sukuk. The Islamic bond was over four times oversubscribed, with 65 per cent of the allocation placed with international investors—a clear signal of global confidence in Ittihad's strategy and financial management. "We enter 2026 with strong operational momentum, a materially stronger capital structure, and the financial flexibility to continue pursuing sustainable growth," Kakish stated in the release.

Navigating Headwinds and Expanding Horizons

Looking ahead, Ittihad projects another year of earnings growth in 2026, though it acknowledges emerging regional challenges. The outlook comes amid significant geopolitical turmoil, particularly the crisis that has severely disrupted shipping through the Strait of Hormuz since late February. Such disruptions pose a risk to any industrial player reliant on regional and international supply chains. However, the group’s strong regional focus and diversified operations may provide a partial buffer against these external shocks.

The company's primary growth engine for the near future is a major strategic expansion into Saudi Arabia. A new tissue mill, built with a primary investment of USD 80.1 million in 2025, is on track to commence operations in the second quarter of 2026. This facility will add over 60,000 tonnes of annual capacity, increasing the group's total tissue production to 160,000 tonnes and making its subsidiary, Crown Paper Mill, the largest tissue producer in the Middle East.

This investment is just the first step in a broader push into the Saudi market. Ittihad is advancing a strategic forward integration into the business-to-consumer (B2C) space, with two converting facilities under development in the Kingdom. These plants, one for tissue and hygiene products and another for printing and writing paper, are expected to be operational in 2027. This move marks a significant evolution of the group's strategy, aiming to leverage its robust raw material production to capture higher-margin branded consumer products and penetrate the lucrative MENA consumer market directly.

With a fortified balance sheet, proven operational resilience, and a clear strategy for regional expansion, Ittihad is positioning itself to not only weather current geopolitical storms but to emerge as a more integrated and powerful industrial force across the Middle East.