Aramex Q3: Logistics grew 16% YoY, indicating strong regional demand and capacity expansion

Aramex today announced “healthy” financial results for the third quarter  and nine-month period ending 30 September 2025, driven by strong growth in regional domestic and logistics segments.

 Nicolas Sibuet, Acting Group Chief Executive Officer said: “Our third-quarter results reflect the strength of Aramex’s diversified business model and our agility in navigating a changing market environment. We are seeing consistent growth in local and intra-regional activity, which now anchor our regional strategy. This transformation in our revenue mix underscores the success of our efforts to position Aramex as a leading regional logistics provider. Through our Accelerate28 program, we are advancing a long-term transformation that focuses on operational efficiency, network optimization, and digital enablement. These initiatives are already delivering early results and will continue to strengthen our foundation for sustainable growth and profitability.”

 Financial Performance Commentary

 The results for the third quarter and nine-month period ended 30 September 2025 reflect a period of stable revenues, continued margin recalibration, and ongoing transformation as Aramex navigates a structural shift in its product and geographic revenue mix.

The Company recorded stable Group Revenues for Q3 2025 at AED 1.6 billion, and a 1% increase in 9M 2025 revenues to AED 4.66 billion. The resilient performance came in amidst the industry-wide shift toward regionalization and nearshoring, supported by growth in Domestic Express, Freight Forwarding, and Logistics, which together offset the softness in long-haul International Express. Domestic and regional logistics solutions accounted for a growing share of Group revenues, highlighting the Company’s ability to capture evolving trade flows closer to end-consumer markets. Aramex continued to benefit from sustained intra-regional demand in its key markets.

From a regional perspective, the GCC remained the largest revenue contributor, supported by healthy economic fundamentals and resilient intra-regional trade. Oceania continued its turnaround, recording further improvements in both top-line and profitability.

Revenue was also impacted by tariffs and regulatory shifts, particularly in select international trade lanes. The oil and gas sector slowdown also had a temporary impact on freight activity. Despite these headwinds, Aramex delivered growth in key product lines, driven by regional demand and continued customer diversification.

Impacted by nearshoring trends, the International Express product continues its recalibration from long-haul to short-haul, leading to a 9% and 13% YoY revenue decline in Q3 2025 and 9M 2025, respectively. In contrast, Domestic Express revenues rose 5% in Q3 2025 and 10% in 9M 2025, Freight Forwarding increased 4% in Q3 2025 and 6% in 9M 2025, and Logistics posted double-digit growth in both periods of 16% and 20% respectively. Our Logistics business reported better quality revenue and improved profitability, reflecting the payoff from past investments in infrastructure, specialized services, and contract optimizations.

In line with expectations, the reduced contribution from the higher-margin International Express business continues to shape the Group’s profitability profile. Gross Profit for 9M 2025 stood at AED 1.06 billion, down 4% YoY, with a Gross Profit Margin of 23% for the same period. This recalibration reflects the evolving product mix, inflationary cost pressures, and continued investment in regional capacity.

Group Selling, General and Administrative Expenses (SG&A) remained broadly in line with previous quarters as a percentage of revenue, reflecting consistent cost discipline. During Q3 2025 the Company continued to make good progress with its transformation program, launched earlier in the year under the Accelerate28 strategy.

Normalized EBIT, excluding one-off expenses associated with the ongoing transformation program and the ADQ acquisition costs, was up 9% in Q3 2025 to AED 74 million, underscoring the Company’s focus on operational efficiency and overhead management.  Normalized EBIT for the 9M 2025 period reached AED 169 million.

Normalized Net Profit, excluding the transformation and acquisition costs, was AED 27 million in Q3 2025, stable compared to Q3 2024. For the 9M period, normalized net profit reached AED 60 million.