Abu Dhabi National Energy Company PJSC

TAQA maintains a debt-to-equity ratio of 0.66, indicating a moderate reliance on debt financing, and a current ratio of 0.74, suggesting limited short-term liquidity coverage. The company's liquidity position is assessed as medium risk, with free cash flow of 569 million AED and operating cash flow of 2.42 billion AED, but net cash is negative after subtracting total debt.

Profitability metrics show a return on equity (ROE) of 2.22% and a return on assets (ROA) of 0.99%, both below the typical thresholds for high-performing utilities firms. The operating margin is 21.2%, and the net profit margin is 15.5%, which are in line with the industry's median performance.

Geographically, TAQA's revenue is heavily concentrated in the UAE, with no material diversification into other regions. The company operates in two primary segments: Power and Water, and Oil and Gas. The Power and Water segment contributes the majority of revenue, with a strong presence in the domestic market.

Looking ahead, TAQA is projected to maintain stable revenue growth, with a modest increase in the current fiscal year and a similar trajectory expected for the next fiscal year. Capital expenditure is expected to remain a drag on free cash flow, with CAPEX at -1.74 billion AED in the latest period.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The risk assessment highlights the negative net cash position as a key flag, but no imminent dilution pressure is expected. The company has not issued new shares recently, and no dilutive events are currently on the horizon.

Recent filings and transcripts indicate a focus on maintaining operational efficiency and managing debt levels. The company has not announced any major strategic shifts, and the analyst community has assigned a mean recommendation of 4.50, indicating a neutral stance with no strong buy or sell ratings.

Operating and net margins exceed Multiline Utilities medians, indicating superior profitability relative to peers.

Debt-to-equity ratio of 0.66 is below the cohort median of 0.84, suggesting a conservative leverage profile.

Revenue grew at a 4.9% CAGR over four years, demonstrating consistent top-line expansion.

Net income CAGR of 5.8% over four years shows modest but positive earnings growth trajectory.

Free cash flow turned negative in FY2026, dropping to -15 million AED from 4.16 billion AED prior.

Return on equity of 2.22% falls in the bottom quartile of the Multiline Utilities cohort.

The company faces high credit risk, signaling potential challenges in debt servicing or refinancing.

Cash conversion ratio of 1.14 is below the cohort median of 1.33, indicating weaker cash generation efficiency.

Revenue AED 12.14B, −9,6% YoY; Operating income +5,9% YoY.

• ▍Revenue AED 12.14B, −9,6% YoY
• ▍Operating income +5,9% YoY
• ▍Net income +84,9% YoY
• ▍Free cash flow −275,0% YoY
• ▍Net margin 11.4%

Revenue AED 14.42B, −0,4% YoY; Operating income +8,3% YoY.

• ▍Revenue AED 14.42B, −0,4% YoY
• ▍Operating income +8,3% YoY
• ▍Net income +26,6% YoY
• ▍Free cash flow −42,1% YoY
• ▍Net margin 16.4%

Revenue AED 14.23B, +5,4% YoY; Operating income −12,4% YoY.

• ▍Revenue AED 14.23B, +5,4% YoY
• ▍Operating income −12,4% YoY
• ▍Net income −32,7% YoY
• ▍Free cash flow −64,5% YoY
• ▍Net margin 11.4%

Revenue AED 13.42B; Operating income AED 1.63B.

• ▍Revenue AED 13.42B
• ▍Operating income AED 1.63B
• ▍Net margin 5.6%

Revenue AED 14.47B; Operating income AED 2.50B.

• ▍Revenue AED 14.47B
• ▍Operating income AED 2.50B
• ▍Net margin 12.9%

Revenue AED 13.50B; Operating income AED 2.96B.

• ▍Revenue AED 13.50B
• ▍Operating income AED 2.96B
• ▍Net margin 17.9%

Revenue AED 13.68B; Operating income AED 2.90B.

• ▍Revenue AED 13.68B
• ▍Operating income AED 2.90B
• ▍Net margin 15.5%

Revenue AED 54.80B, −0,7% YoY; Operating income −3,1% YoY.

• ▍Revenue AED 54.80B, −0,7% YoY
• ▍Operating income −3,1% YoY
• ▍Net income +5,6% YoY
• ▍Free cash flow −100,4% YoY
• ▍Net margin 13.6%

Revenue AED 55.16B, +6,7% YoY; Operating income −2,8% YoY.

• ▍Revenue AED 55.16B, +6,7% YoY
• ▍Operating income −2,8% YoY
• ▍Net income −57,5% YoY
• ▍Free cash flow −72,0% YoY
• ▍Net margin 12.8%

Revenue AED 51.72B, +3,3% YoY; Operating income −6,9% YoY.

• ▍Revenue AED 51.72B, +3,3% YoY
• ▍Operating income −6,9% YoY
• ▍Net income +107,3% YoY
• ▍Free cash flow +103,5% YoY
• ▍Net margin 32.2%

Revenue AED 50.05B, +10,5% YoY; Operating income +36,0% YoY.

• ▍Revenue AED 50.05B, +10,5% YoY
• ▍Operating income +36,0% YoY
• ▍Net income +34,7% YoY
• ▍Free cash flow −27,1% YoY
• ▍Net margin 16.0%

Revenue AED 45.29B; Operating income AED 8.05B.

• ▍Revenue AED 45.29B
• ▍Operating income AED 8.05B
• ▍Net margin 13.2%