Parkin Reports Record Revenues and Profit on Strong Momentum

- Parkin delivers record annual and quarterly revenues, EBITDA and net income on the back of strong operational momentum

Parkin Company PJSC (“Parkin” or the “Company”), the largest provider of paid public parking facilities and services in Dubai, today reports its operational and financial results for the fourth quarter and the full year ended 31 December 2025.

Key Takeaways: Q4 2025 vs. Q4 2024

• Total revenues of AED 389.4 million (+47%)
• EBITDA of AED 232.9 million (+47%), EBITDA margin of 60% maintained
• Net profit of AED 183.6 million (+53%)
• Total net addition of c.22.6k new spaces across entire parking portfolio (+11%)

   

• Total parking transactions of 37.0 million (+0.3%)
• Average public parking utilisation rate of 23.0% (-5 p.p.)
• Total public parking seasonal card sales of 89.3k (+140%)
• Subject to shareholder approval, a cash dividend of AED 343.7 million for H2 2025 will be paid in late April 2026 (+22%)

 

Operational Highlights

Throughout this document, please note: n/m = not meaningful, n/a = data not available. Figures may not sum up due to rounding. Percentage changes are calculated based on rounded figures

1. Other consists of revenue generated from parking reservations, rental income from shop leases, mall management fees and finance income generated from cash deposits
2. For FY 2024, capital expenditure includes the one-off up-front payment of the concession fee paid to the RTA in exchange for the 49-year concession (AED 1.1 billion)

    

3. Free cash flow to equity is defined as net cash flows generated from / used in operating activities + net cash generated from / used in investing activities + net cash flows from financing activities

    

4. Cash conversion is defined as EBITDA, less capital expenditure, divided by EBITDA and excludes the concession payment (AED 1.1 billion)

Eng. Mohamed Abdulla Al Ali, CEO of Parkin, commented:

“We closed 2025 with a strong quarter, converting disciplined execution into higher earnings. As in prior periods, we continued to expand our operational footprint, adding both public and developer parking spaces to our portfolio, supported by Dubai’s status as a world class place to live, work, visit and invest. Seasonal card sales reached record highs as customers continued to recognise the relative value offered by this product. Total transaction volumes were broadly in line with the same period last year, while utilisation moderated as expected, reflecting a greater mix of seasonal card users, as well as the addition of new parking space capacity. We also benefited from the implementation of the variable parking tariff earlier in the year. On the enforcement front, we continued to leverage our technology enabled smart scan car inspection fleet, with targeted, data-driven field inspector deployment reinforcing compliance across the network. I am pleased to report that these combined operational drivers delivered record revenue, EBITDA and net income in the fourth quarter and for the year ended 31 December 2025.”

 

 

Q4 2025 Operational Performance

Total Active Parking Spaces

The total number of parking spaces as at the end of Q4 amounted to 229.0k, a 11% increase compared to Q4 2024 (206.4k). This growth was driven by additions across our entire portfolio including public, developer and multi-storey parking facilities.

Public Parking

Public parking spaces increased by 9.2k (+5%), to 193.2k spaces in Q4 2025 (Q4 2024: 184.0k). In terms of new additions, zone C (on-street parking) saw the largest increase with 5.4k spaces added, while zone D (off-street parking) benefited from the addition of 3.7k new spaces.

Zone	Total Public Parking Spaces (‘000)
	Q4 2024	Q4 2025	% ∆
A	26.6	26.6	0%
B	3.3	3.3	0%
C	114.5	119.9	+5%
D	39.6	43.3	+9%
X([1])	0.0	0.2	n/m
Total	184.0	193.2	5%

 

Following the introduction of the variable parking tariff in Dubai from April 2025, the Company’s public parking portfolio was reclassified into Standard Parking (113.5k spaces) and Premium Parking (79.7k spaces) categories.

Zone	Total Public Parking Spaces (‘000)
	Q4 2025	% of Public Portfolio
Standard Parking
A	3.3	2%
B	0.2	0%
C	80.9	42%
D	29.1	15%
	113.5
Premium Parking
AP	23.2	12%
BP	3.0	2%
CP	39.0	20%
DP	14.2	7%
X(1)	0.2	0%
	79.6

Developer Parking

On a net basis, developer parking spaces increased from 19.2k in Q4 2024 to 32.2k in Q4 2025. This increase was as a direct result of various developer contracts signed, primarily in H2 2025.[2]

 

Comparing the evolution of developer spaces between Q3 2025 and Q4 2025, 9.0k developer spaces were added in Q4 2025.

Total Developer Parking Spaces (‘000)*
Q3 2025 End	Q4 2025 Additions	Q4 2025 Reductions	Q4 2025 End
23.2k	9.0k	-	32.2k

*Numbers may not add due to rounding

 

Multi-story Car Parking (MSCP)

MSCP spaces increased by 0.4k from 3.2k in Q4 2024 to 3.7k in Q4 2025. The newly refurbished Al Rigga MSCP re-opened in July 2025, restoring access to 440 spaces, equipped with barrierless, ticketless access technology.

Parking Transactions

Parking transaction volumes in Q4 2025 were supported by continued demand for parking, driven by Dubai’s solid economic growth, ongoing population expansion and resilient tourism.

Public parking transaction volumes declined marginally to 31.9 million in Q4 2025 (32.7m in Q4 2024). The modest decline reflects a shift towards seasonal card purchases as customers continued to take advantage of the value-for-money offered by the unchanged prices.

The developer parking segment recorded a 21% increase in transaction volumes, reaching 4.8 million parking transactions in Q4 2025 (Q4 2024: 4.0 million). This growth reflects the expansion of the developer portfolio following the signing of multiple contracts in H2 2025.

MSCPs transactions increased to 0.3 million parking transactions in the quarter (Q4 2024: 0.2 million), primarily driven by the reopening of the refurbished Al Rigga MSCP in July 2025.

Public Parking Utilisation

From Q2 2025, following the introduction of the variable parking tariff in April, customers capitalised on the value-for-money proposition presented by the existing seasonal card prices, helping to drive a notable increase in public parking seasonal card purchases.

As a result, overall public parking utilisation in Q4 2025 came in at 23.0% (Q4 2024: 28.3%), reflecting a partial shift from users who would normally purchase a daily pass (particularly in zones B and D), to customers opting to purchase a seasonal card. Consistent with Q2 and Q3 2025, utilisation across zones B and D experienced more of an impact when compared to zones A and C.

When interpreting the Q4 2025 public-parking utilisation rate, it should be noted that customers purchased a record 89.3k seasonal cards during the quarter, a 140% increase compared to Q4 2024 (37.2k).

The table below shows a detailed breakdown of public parking utilisation, split between peak and off-peak hours.

	Q4 2024		Q4 2025		p.p. ∆
Public Parking Utilisation	Peak	Off-Peak	Peak	Off-Peak	Peak	Off-Peak
Zone A + AP	23.8%	23.2%	22.0%	23.8%	-1.8 p.p.	+0.6 p.p.
Zone B + BP*	28.1%		13.1%		13.1%
Zone C + CP	28.2%	26.2%	20.5%	27.5%	-7.7 p.p.	+1.3 p.p.
Zone D + DP*	55.3%		23.8%		23.8%
Total	27.6%	28.7%	19.4%	29.7%	-8.2 p.p.	+1.0 p.p.

 

* When calculating utilisation for zones B and D, the hourly tariff is based on the premium or standard day rate, divided by 14 chargeable hours instead of the hourly rate. For zones A and C, utilisation is calculated using the weighted average tariff for each zone, factoring in peak and off-peak rates as well as the premium and standard parking split. Utilisation is calculated as actual revenue expressed as a percentage of maximum theoretical revenue. Maximum theoretical revenue = weighted hourly tariff x 14 chargeable hours per day x number of spaces in the zone x number of chargeable days in the quarter

 

The table below compares public parking utilisation, split between each of the public parking zones.

Public Parking Utilisation	Q4 2024	Q4 2025	p.p. ∆
Zone A + AP	23.8%	23.3%	-0.5 p.p.
Zone B + BP	29.9%	13.9%	-16.0 p.p.
Zone C + CP	26.6%	22.7%	-3.9 p.p.
Zone D + DP	58.6%	25.1%	-33.5 p.p.
All Public Parking	28.3%	23.0%	-5.3 p.p.

 

Public Parking Weighted Average Hourly Tariff

The weighted average hourly tariff increased 51% to AED 3.03, following the introduction of the variable parking tariff in April 2025. As a result of the uplift in the daily parking tariff, zones B and D experienced a material increase in their weighted-average tariffs relative to zones A and C.

Public Parking Weighted Avg. Tariff
Public Parking Zone	Q4 2024	Q4 2025	% ∆
Zone A	4.00	4.75	19%
Zone B	1.43	2.80	96%
Zone C	2.00	3.14	57%
Zone D	0.71	1.67	134%
All Zones	2.01	3.03	51%

 

Seasonal Cards Sales

Total seasonal card sales increased by 140% to 89.3k in Q4 2025 (Q4 2024: 37.2k). Growth was strong across all durations, with 1-month seasonal cards in particular recording the highest year-on-year increase, consistent with what was observed in Q2 and Q3 2025.

 

	Q4 2024		Q4 2025		Change Q4 2025 vs. Q4 2024
Seasonal Card Duration	Zones A to D	Zones B+D	Zones A to D	Zones B+D	Zones A to D	Zones B+D
1 month	14.8	11.2	31.9	41.3	116%	269%
3 months	4.5	2.7	4.3	4.5	-4%	61%
6 months	1.1	0.4	2.3	1.1	108%	189%
12 months	2.2	0.4	3.3	0.8	50%	89%
Total	22.5	14.7	41.7	47.6	85%	224%

 

The growth in seasonal card sales volumes is underpinned by customers taking advantage of the temporary price gap between the variable daily tariffs effective April 2025 and the unadjusted seasonal card rates. The current cost of these seasonal cards represents a strong value proposition for frequent customers.

 

Seasonal Card Duration / Cost	Zones A to D	Zones B + D Only
1 month	AED 500	AED 250
3 months	AED 1,400	AED 700
6 months	AED 2,500	AED 1,300
12 months	AED 4,500	AED 2,400

 

Enforcement

During Q4 2025, the Company’s field enforcement team scanned a total of 11.5 million vehicle registration plates, a 129% increase on Q4 2024 (5.0 million). Meanwhile, the Company’s fleet of smart inspection cars scanned a total of 17.5 million vehicle registration plates, a 154% increase on the same period last year (Q4 2024: 6.9 million). Enforcement notices issued by Parkin increased by 59% year-on-year, from 509k in Q4 2024 to 810k in Q4 2025. 80% of total enforcement notices in Q4 2025 (650k) were issued in relation to public parking violations (Q4 2024: 424k).

The increase in scanned vehicles and fines reflects higher customer activity, the expansion of our parking portfolio, the ongoing impact of technology and efficiency based enhancements to our enforcement framework and the growth of our smart scan inspection fleet to 27 units. In February 2025, Parkin also onboarded an equivalent number of trained drivers to operate these vehicles. This enabled inspectors who had previously undertaken smart scan driving responsibilities to transition to either field or supervisory roles, effectively increasing operational inspector capacity, a capability that was not available in Q4 2024.

 

Q4 2025 Financial Performance

Total Revenue

Total revenue increased by 47% to a quarterly record of AED 389.4 million (Q4 2024: 265.0 million), with notable year-on-year increases in revenue generated across all business segments, particularly public parking, seasonal card / permit fees and enforcement. As at Q4 2025, revenues from developer parking and enforcement, for which Parkin is exempt from concession fees, constituted 40% of total revenues (Q4 2024: 37%).

Public parking revenue increased 29% to AED 144.5 million (Q4 2024: AED 112.0 million), supported by an increase in the weighted average hourly tariff to AED 3.03 (Q4 2024: AED 2.01) and an increase in the size of the public parking portfolio. Average revenue per public parking spot increased 23%, from AED 608 in Q4 2024 to AED 749 in Q4 2025. Revenue generated during peak hours amounted to AED 80.9 million (56% of total public parking revenue) in Q4 2025, compared to AED 52.6 million (47% of total public parking revenue) in Q4 2024.

Developer parking revenue increased 38% to AED 28.1 million in the period (Q4 2024: AED 20.3 million), supported by space growth, stronger transaction volumes and the application of the variable tariff in relation to around one third of the developer portfolio. Average revenue per developer parking space increased by 1%, from AED 986 in Q4 2024, to AED 994 in Q4 2025.

Revenue from seasonal cards and permits in Q4 2025 increased 66% to AED 67.4 million, due to a record number of seasonal cards sold during the period (Q4 2024: 40.5 million).

Enforcement revenue increased by 65% to AED 127.1 million in Q4 2025 (Q4 2024: AED77.0 million). The overall fine collection rate amounted to 81% during the quarter (Q4 2024: 85%). The lower collection rate reflects the overall growth in fine volumes and revenue.

Concession Fee Expense

As part of 49-year concession agreement, Parkin pays the RTA a variable concession fee on all revenues, except those from enforcement and developer parking. Under the terms of the agreement, the overall concession fee is capped at 27.5%.

The implementation of the variable parking tariff from April 2025 has resulted in a substantial change to the weighted average public parking tariff. Subject to ongoing discussions with the RTA, Parkin has provisioned for a blended concession rate of up to 27.0% in relation to the relevant concession revenue streams for Q2, Q3 and Q4 2025. In Q4 2025, the variable concession fee reached AED 61.2 million (Q4 2024: AED 32.7 million). The fee increase was driven by higher revenue generated by the Company’s core business segments (public parking, MSCPs and seasonal cards).

Staff Costs

In Q4 2025, employee benefits expense constituted AED 34.5 million, based on a total headcount of 354 staff, compared to AED 29.1 million and 337 staff in Q4 2024. Hiring will continue during 2026 as the Company concludes building up its internal capabilities, targeting a headcount of c.390.

EBITDA

EBITDA increased 47% in Q4 2025 to AED 232.9 million (Q4 2024: AED 158.2 million), representing an EBITDA margin of 60% (Q4 2024: 60%).

Net Profit

Net income for the period increased 53% to AED 183.6 million (Q4 2024: 120.0 million). Bottom‑line growth was driven by higher revenue and marginally lower finance costs, partially offset by increased operating expenses, depreciation and tax.

Free Cash Flow and Cash Conversion

In Q4 2025, the Company had generated AED 222.3 million of Free Cash Flow to Equity (Q4 2024: AED 132.4 million). The Company continues to focus on collecting receivables generated in prior periods.

The cash conversion rate in Q4 2025 was 99%, due to Parkin’s strong revenue performance and capex light business model.

Borrowings

In Q1 2024, Parkin and Emirates NBD PJSC entered into an agreement for AED 1.2 billion in unsecured credit facilities, comprising of a 5-year Murabaha term financing facility of AED 1.1 billion and an AED 100 million Murabaha revolving credit facility. Both facilities carry a variable interest set at 3-month EIBOR plus a margin of 0.80% per annum.

At the end of the Q4 2025, Parkin’s net debt position amounted to AED 681.2 million.[3]

Including the Murabaha revolving credit facility, which remains fully undrawn, the Company has available liquidity of AED 565.2 million.³

Dividend Policy

The Company intends to pay a semi-annual dividend in April and October of each year.

For FY 2025, Parkin expects to pay a minimum dividend based on the higher of:

1. 100% of net profit for the year, or
2. Free cash flow to equity, subject to distributable reserves requirements.

Parkin declared and paid an interim dividend of AED 312.0 million (10.3999 fils per share) to eligible shareholders at the end of October 2025.

Subject to shareholder approval at the forthcoming Annual General Meeting at the end of March 2026, the Board has resolved to distribute a cash dividend of AED 343.7 million (11.4574 fils per share) in respect of H2 2025, with payment anticipated in late April 2026 and representing a 22% increase on the H2 2024 dividend (AED 280.9 million).

 

Tariff Revision Request

In mid‑February 2026, the Company made a formal submission to the Roads & Transport Authority (RTA), requesting various adjustments that, if approved, would increase the weighted‑average public parking tariff.

 

Among these are proposed changes to the seasonal card structure and tariffs, designed to reduce existing price arbitrage and better align with the variable pricing introduced earlier this year. The proposals would also preserve the existing discount framework to promote long‑term fairness for customers, Parkin, and the RTA.

 

The RTA has confirmed receipt of our proposal and will undertake a detailed review before approaching the Executive Council of Dubai for guidance and final approval.

 

FY 2026 Outlook

The management team is pleased to provide detailed segmental guidance for 2026. It should be noted that the projections presented are based on current information and assumptions and do not reflect any potential impact that may arise from the outcome of Parkin’s tariff revision submission to the RTA.

 

Public Parking

Management anticipates expanding the public parking portfolio by approximately 5,500 to 7,500 spaces over the course of 2026. It is projected that the public parking segment will generate revenue of between AED 560 – AED 610 million (FY 2025: AED 524.5 million).

 

Enforcement

The continued effectiveness of Parkin’s enforcement framework is anticipated to generate annual enforcement revenue of between AED 420 – AED 460 million (FY 2025: AED 408.7 million).

Seasonal Cards

The Company expects to capture AED 260 – AED 280 million in revenue from the sale of seasonal cards in 2026 (FY 2025: 211.0 million). This assumption does not consider the potential impact arising from the proposed revisions to seasonal card pricing currently under review by the RTA.

Developer Parking

The private and developer parking segment is projected to contribute AED 110 – AED 130 million in revenue during the year (FY 2025: 94.0 million).

It should be noted that, in 2025, Parkin entered into several low-margin developer agreements under which the Company is obliged to pay a minimum annual guarantee and / or a fixed annual fee, consistent with common market practice in the sector. As a result, while segment revenue is expected to grow in 2026, margin expansion will remain constrained. The fixed components of such agreements (minimum annual guarantee fees and the fixed annual fees), will be recognised below EBITDA as amortisation of the right‑of‑use asset and interest on the lease liability, increasing the Company’s depreciation expense and finance costs.

Capital Expenditure

Capital expenditure for 2026 is projected at AED 45 – AED 55 million to cover costs in relation to several developer contracts and technology projects, including camera equipment for our smart parking lots (FY 2025: 13.9 million). The overall guided amount includes the previously announced capital expenditure of up to AED 20 million in relation to the Sports City agreement signed in late September 2025.