Parkin Q2 2026 Revenue Soars to AED 364.1 Million, Up 14%, as Dubai Parking Spaces Expand by 27%

Parkin Company PJSC (Parkin) has reported significant growth in its financial and operational metrics for the second quarter ending June 30, 2026. The company achieved a total revenue of AED 364.1 million, marking a 14% increase compared to the same period in 2025. This growth is attributed to various factors, including an uptick in seasonal card sales, developer parking, and enforcement activities.

Financial Performance Highlights

Net profit for the quarter rose by 12% to AED 166.2 million, bolstered by the aforementioned segments. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy increase of 15%, reaching AED 217.2 million, with an EBITDA margin of 60%.

The CEO of Parkin, Eng. Mohamed Abdulla Al Ali, emphasized the company’s strong performance, stating that the growth was driven by seasonal cards, developer parking, and enforcement, which effectively counterbalanced a decline in public parking demand during the quarter.

Expansion of Parking Portfolio

Parkin has made significant strides in expanding its parking portfolio, adding nearly 57,000 spaces over the past year. In collaboration with the Roads and Transport Authority (RTA), the company introduced 9,900 public parking spaces in the first half of 2026. The developer parking portfolio has more than tripled to 61,500 spaces, facilitated by strategic partnerships.

The total parking portfolio now stands at 268,300 spaces, reflecting a 27% increase from 211,500 spaces in Q2 2025. Public parking spaces rose by 14,500, or 8%, to 203,200. Notably, Zone C contributed 9,900 new spaces, while Zone D accounted for 4,500. During the second quarter, Parkin added 7,900 public parking spaces in conjunction with the RTA, with approximately half of these introduced in June.

Changes in Parking Classification

Following the implementation of a variable parking tariff in April 2025, Parkin has reclassified its public parking portfolio into Standard and Premium categories. By the end of Q2, Standard Parking comprised 122,700 spaces, representing 60% of the public parking portfolio, while Premium Parking accounted for 80,300 spaces, or 40%.

The developer parking segment has also seen substantial growth, with spaces increasing from 19,600 a year ago to 61,500. This growth is primarily due to contracts signed in the latter half of 2025. Additionally, Parkin added 2,400 developer spaces during the second quarter, while multi-storey car parking spaces increased by around 400 to 3,700.

Transaction Metrics and Utilization Rates

Total parking transactions reached 34 million, reflecting a 2.6% year-on-year increase. However, public parking transactions declined to 27.2 million from 29.2 million, while transactions for developer parking surged by 75% to 6.6 million from 3.8 million. Transactions at multi-storey car parks remained stable at 0.2 million.

The average public parking utilization rate was recorded at 20.2%, down from 22.7% in Q2 2025 and 21.8% in Q1 2026. Seasonal card sales rose by 38% to 97,500 from 70,900, while the weighted average hourly public parking tariff remained stable at AED 3.00, a slight decrease of 1% year-on-year.

Enforcement and Revenue Streams

Parkin’s enforcement teams scanned 8.3 million vehicle registration plates, a 1% increase, while the smart inspection fleet scanned 20.6 million plates, a 52% rise from 13.5 million. The smart inspection fleet expanded to 37 vehicles from 25 a year earlier. Enforcement notices increased by 5% to approximately 695,000, with 496,000, or 71%, related to public parking violations.

Public parking revenue experienced an 8% decline, dropping to AED 121.9 million from AED 132.2 million. Conversely, developer parking revenue rose by 61% to AED 35.8 million, while revenue from seasonal cards and permits increased by 50% to AED 78.2 million. Enforcement revenue grew by 11% to AED 107.5 million from AED 96.7 million, although the fine collection rate decreased to 75% from 83% a year earlier.

The variable concession fee paid to the RTA increased to AED 55.2 million from AED 49.2 million. Staff costs remained stable at AED 34.7 million, with an average headcount of 361 employees.

Future Outlook

Free cash flow to equity reached AED 341.8 million, with a cash conversion rate of 96%. Parkin’s net debt stood at AED 710.1 million at the end of the quarter, while available liquidity amounted to AED 563.2 million.

The company has reaffirmed its dividend policy, planning to pay semi-annual dividends in April and October. For the first half of 2026, Parkin anticipates paying a minimum dividend equal to the higher of 100% of net profit for the period or free cash flow to equity, subject to distributable reserve requirements.

For the full year 2026, Parkin projects public parking revenue between AED 510 million and AED 550 million, enforcement revenue between AED 420 million and AED 460 million, seasonal card revenue between AED 280 million and AED 300 million, and developer parking revenue between AED 130 million and AED 150 million.

Capital expenditure guidance remains at AED 45 million to AED 55 million, a notable increase from AED 13.9 million in 2025. Following the addition of 9,900 public parking spaces in the first half, Parkin estimates that an additional 3,500 to 5,000 spaces could be added by year-end.

Source: www.emirates247.com

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Published on 2026-08-14 13:05:00 • By the Editorial Desk