AD Ports Posts Record Q3 as Hormuz Rerouting Offsets 57% TEU Slump

AD Ports Group grew net profit 64% year-over-year to $265 million in the third quarter of 2026, pulling in record revenue of $2.18 billion even as UAE container throughput crashed 57% to 751,000 TEUs amid ongoing disruption to shipping through the Strait of Hormuz.

Group EBITDA rose 63% to $536 million. The margin widened to 24.6%, from 22.3% in Q3 2025. The numbers land in what the Abu Dhabi-based operator calls one of the toughest stretches in its two-decade history — and they raise an obvious question for Gulf shippers and carriers: how does a ports group print records while its home terminals run at less than a third of capacity?

The short answer is diversification. Maritime & Shipping, not the ports themselves, delivered the earnings engine this quarter.

What carried the quarter?

Maritime & Shipping revenue surged 56% year-over-year to $1.29 billion — 58% of total group revenue. EBITDA more than doubled to $335 million at a 26% margin. The company credits additional fleet capacity and elevated freight rates, particularly in container feeder shipping, Ro-Ro and tanker operations.

Container feeder volumes hit 900,000 TEUs, flat year-over-year but up 22% sequentially, with freight rates still climbing on both annual and quarterly comparisons. The bulk, multipurpose and Ro-Ro fleet grew to 76 vessels from 48 a year earlier, giving the group tonnage to sell into a strong rate environment.

The Logistics Cluster posted the sharpest percentage gains: revenue up 76% to $534 million, EBITDA up 246% to $32 million. Economic Cities & Free Zones added $188 million in revenue, up 15%, on industrial land leasing, staff accommodation utilization and gas provisioning.

The Ports Cluster itself returned $217 million in revenue, up 12%, with EBITDA of $106 million, up 8%, and a 48.7% margin. The landlord model — revenue tied to concessions rather than pure volume — cushioned the throughput collapse.

What happened at the UAE terminals?

The annual comparisons are brutal. UAE container throughput fell 57% year-over-year. Bulk and general cargo dropped 54% to 4.5 million tonnes. Regional instability kept vessel traffic and terminal operations suppressed across the group's home network.

But the sequential picture shows recovery taking hold. Container volumes rebounded more than 30% from Q2 2026 lows. Bulk and general cargo recovered 48% quarter-over-quarter. Container terminal capacity utilization in the UAE improved to 29%, from 22% in the second quarter. International terminals ran at 73% utilization, up from 61%.

The rebound was not an accident. Since March, AD Ports has executed a series of measures under the UAE's National Programme to Strengthen Supply Chain Resilience, built around keeping cargo moving while Hormuz transit stays impaired.

Which routes replaced Hormuz transits?

The core move was geographic. AD Ports rerouted cargo and feeder shipping services through Fujairah Terminals and Khor Fakkan Port — both on the Gulf of Oman, outside the Strait of Hormuz. Cargo that once moved through Gulf-side gates now enters the region from the eastern seaboard.

The group added land and air transport connections, expanded warehousing and storage capacity, and built alternative multimodal corridors across the UAE and the Gulf Cooperation Council states. One partnership with Etihad Rail established direct rail services linking Fujairah Terminals with the Industrial City of Abu Dhabi, connecting Gulf of Oman port infrastructure directly to inland industrial and logistics sites.

Those continuity measures had a commercial payoff beyond ports. They helped the Logistics Cluster absorb a 36% year-over-year decline in UAE polymer cargo volumes — a sector-specific hit that would otherwise have dragged on results.

What about the international build-out?

AD Ports kept spending through the disruption. It funded its acquisition of Brazil's Corredor Logística e Infraestrutura (CLI) Group, an independent agricultural bulk terminal operator, completed October 1, 2026 — a significant extension of its international bulk cargo handling business. The group is also progressing its acquisition of Germany-based MBS Logistics.

At home, SAFEEN Drydocks added a 230-meter floating dock at Zayed Port, expanding ship repair capacity across a shipyard footprint of more than 170,000 square meters at Zayed Port and Khalifa Port.

Group CEO Dr. Afif Saif Al Yafei framed the quarter as proof the model works under stress. "In one of the most challenging periods in its 20-year history, AD Ports Group achieved record results during Q3," he said, pointing to operational resilience and integrated supply chain capabilities.

What does the balance sheet look like?

Operating cash flow reached $801 million, roughly three times the year-earlier level, on higher operating profits and tighter working capital management. Organic capex ran at about $316 million.

Free cash flow to the firm was negative $188 million — but that figure reflects CLI acquisition funding. Strip out the deal and adjusted free cash flow would have been positive at roughly $319 million. Net leverage improved to 3.5 times, from 4.4 times in Q3 2025.

For the first nine months of 2026, revenue stands at $5.67 billion, up 41%, with net profit up 64% at $671 million.

The trajectory now hinges on two variables: whether UAE throughput continues its quarter-on-quarter climb toward pre-disruption levels, and whether freight rates in feeder, Ro-Ro and tanker markets stay high enough to keep the shipping division earning at this pace.