MD&A (NMDC Group FY 2025 MD&A)

FY2025

Earnings Release

NMDC Group reports strong FY25 results with Group Revenues increasing 10% Y-o-Y to reach AED 28.8 billion and Net Profit up 29% Y-o-Y to AED 4.0 billion

Investor Relations Contacts

Hanzada Nessim

Group Head of Investor Relation & Financial Communications

Email: hanzada.nessim@nmdc-group.com

IR Contacts

Email: ir@nmdc-group.com

Phone: +971 2 6990000

Website: https://www.nmdc-group.com

‌Key Highlights

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BusinessDevelopment

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NMDC Group FY2025 Earnings Release

Financial Results

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Key Achievements & Events

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AED 4.29

FY25 21% Y-o-Y

‌Key Highlights

Dec-25

AED 57.9 billion

AED 1.4 billion

FY25

.

NMDC Group Stock Data

*Calculation based on 31st December 2025 closing price

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NMDC Group FY2025 Earnings Release

AED 2.6 billion

Dec-25

INCOME STATEMENT

* Calculated by adding back net finance cost (income) and Depreciation & Amortization to net profit before tax

The Group delivered a strong set of results driven by solid execution across its different business units, with NMDC Group revenues growing 10% Y-o-Y to AED28.8 billion, on project progress and strong backlog execution. Top-line growth was primarily fueled by NMDC Energy, with its revenues contributing 65% to total revenues. Moreover, 81% of the Group's revenues was generated from the UAE and 19% from International markets.

Group EBITDA surged 34% Y-o-Y to AED5.6 billion, underpinned by improved project margins and operational efficiencies; predominately at NMDC D&M. This increase was mirrored in the increase in Group EBITDA margin which came at 19.5% in FY25. NMDC D&M's EBITDA represented 61% of the Group's EBITDA, with an EBITDA margin reaching 34% in FY25.

Group income tax rose to AED571 million in FY25, up 63% Y-o-Y; on higher profitability reported by the Group and the addition of DMTT (Domestic Minimum top-up Tax) to the existing 9% corporate income tax.

Revenue Net Profit After Tax

D&M

Energy

D&M

Energy

35%

40%

65%

60%

* Based on FY25 figures

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NMDC Group FY2025 Earnings Release

INCOME STATEMENT CON'T.

NMDC Group revenues rose to AED8.3 billion in 4Q25, up 7% Y-o-Y; driven by NMDC Energy's 21% Y-o-Y growth in revenue. Of the Group revenues, 81% was generated from the UAE and 19% from outside the UAE.

The Group recorded a 45% Y-o-Y increase in EBITDA to reach AED1.8 billion, with an EBITDA margin of 21.3% in 4Q25. This was mainly backed by a robust EBITDA growth delivered by the D&M segment in 4Q25, reflecting operational efficiencies and enhanced margins.

NMDC Group recorded a net profit after tax of AED1.2 billion, up by 35% Y-o-Y. Net profit margin of 15.0%, up from 11.8% in 4Q24. This was largely driven by NMDC D&M's resilient growth and margin expansions, with its net profit reaching AED587 million and net profit margin climbing to 22.4%.

Group Breakdown

Revenue Net Profit After Tax

D&M

Energy

32%

68%

D&M

Energy

53%

47%

* Based on 4Q25 figures

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NMDC Group FY2025 Earnings Release

BALANCE SHEET

Cash and Bank balances was flat Y-o-Y to stand at AED5.0 billion at the end of FY25; with strong collections of AED26.4 billion during the year FY25, was overshadowed by dividends payment of AED862 million, payments to suppliers, repayments of loan and lease liabilities.

Current assets increased 23% to stand at AED29.4 billion at the end of FY25, on the back of higher trade and retention receivables, contract assets, and advance payments to suppliers inline with the increased in operations.

Non-current assets increased 11% Y-o-Y to AED10.3 billion, driven predominately by an increase in equipment across Energy and D&M, including barges, pipelines, dredgers, and other equipment. In addition, to the new NMDC Energy KSA yard and upgrades to existing UAE yards.

Current liabilities increased 18% Y-o-Y to AED22.3 billion, mainly related to Energy's operation; on the back of an increase in job accruals, trade payables and advances from customers.

Total liabilities reached AED23.8 billion at the end of FY25, up 16% Y-o-Y; driven by the increase in current assets.

Total equity increased 26% Y-o-Y to AED15.9 billion, on the back of an increase in retained earnings which increased by FY25 net profits less dividends payment of AED862 million.

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NMDC Group FY2025 Earnings Release

NET WORKING CAPITAL

Net working capital came at AED2.6 billion at the end of December 2025, reflecting the natural working capital requirements of an expanding portfolio. With the increase in trade receivables, retention receivables and advance payments to suppliers out-weighted the increase in trade payables, job accruals and advance payments from clients.

FREE CASH FLOW

Cash generated from operations before changes in working capital amounted to AED 5.3 billion, demonstrating strong underlying cash generation from core operations, which is driven by profitability and disciplined project execution.

After accounting for working capital movements, net cash from operations amounted to AED2.8 billion, underscoring the Group's continued ability to convert earnings into cash, while absorbing the negative change in working capital associated with revenue growth.

Capex spending stood at AED1.4 billion in FY25, mainly on the back of advance payment for the purchase of a CSD dredger for D&M, NMDC Energy's KSA yard and UAE yards upgrade, together with maintenance capex and additions of equipment including barges, pipelines, and technical equipment.

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NMDC Group FY2025 Earnings Release

Awarded Projects

Expected Backlog Unwinding

AED (bn)

pipeline which stands at AED109 billion as at the end of December 2025

18.3

7.3

3.1

1.3

60 57.9 27.9

50

40

The Group enjoys a healthy

30

20

10

0

Backlog 2026 2027 2028 2029 2030

Backlog Breakdown

Local Vs. International D&M Vs. Energy

International

Local

D&M Energy

19%

31%

69%

81%

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NMDC Group FY2025 Earnings Release

Expansion into the Philippines Market - USD 610.1 million contract

NMDC Group signed a USD 610.1 million contract with Pasay Harbor City Corporation for dredging and reclamation works in Manila Bay - the Group's first project in the Philippines. The 30-month project covers approximately 130 hectares of island reclamation as part of the Harbor City development in Pasay City. This milestone strengthens NMDC Group's presence in Southeast Asia, following successful projects in Taiwan, Vietnam, and Malaysia.

Project Award in Oman

In line with the Group's Strategy that focuses on geographical diversification, NMDC Group has signed a contract for the construction of a marina project in the Sultanate of Oman, with a total value of AED 383 million. The project is expected to be completed within 15 months from the date of signing.

Tai-Power Project Award

In January 2025, NMDC Energy has been awarded a contract by Taiwan Power Company (Taipower) for the installation of subsea gas pipelines, for the second-phase renewal project of the Tung-Hsiao Power Plant in Taiwan. NMDC Energy will be responsible for the design, construction, and installation of marine pipelines at depths ranging from 10 to 55 meters, extending between Taichung and Tung-Hsiao on Taiwan's west coast. This massive project, valued at $1.136 billion, enhances NMDC Energy's presence in Taiwan and actively supports its contributions to renewable energy initiatives.

USD 2.6 billion Local Project Award

NMDC Energy was awarded a AED9.7 billion local project in March 2025. The project involves off-shore EPC work and is expected to be completed within 57 months commencing 31st March 2025. This comes as a testament for NMDC Energy's operational excellence and resilient long-standing relationship with our clients.

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NMDC Group FY2025 Earnings Release

NMDC Infra acquires 51% stake in Spain's Lantania Aguas

In January, NMDC Infra acquired 51% stake in Spain's Lantania Aguas marking NMDC Group's first European market entry. The acquisition expands NMDC Infra's offering into the water and wastewater EPC sectors, and aligns with the Group's strategic diversification objectives. With a backlog of AED 2 billion across several countries, Lantania Aguas will operate under the name Lantania NMDC Water, post completion of the acquisition which is is subject to customary regulatory approvals.

NMDC Infra and CCC Complete the Establishment of NMDCCC

NMDC Group, through its wholly owned subsidiary NMDC Infra, and Consolidated Contractors Company (CCC) have completed the establishment of NMDCCC, a new joint venture focused on delivering onshore oil and gas EPC solutions in the UAE. Operating as a subsidiary of NMDC Infra, NMDCCC combines NMDC Group's scale and resources with CCC's long-standing expertise in complex energy projects to provide full-spectrum, high-quality EPC services across the energy infrastructure lifecycle.

NMDC LTS Completes the Acquisition of 70% Stake in Emdad

NMDC LTS, completed the acquisition of a 70% equity stake in Emdad, a UAE-based integrated oilfield services provider. The transaction supports NMDC's strategy to expand into the OPEX-driven oilfield services segment and diversify its revenue streams. Emdad offers a broad range of services including well intervention, waste management, shutdowns/turnarounds, coil tubing, and valve services. The acquisition enhances NMDC's competitive edge, strengthens its position in the regional energy services market, and aligns with its long-term growth and diversification strategy.

First steel cut ceremony- Ras Al Khair Fabrication Yard in KSA

In July, NMDC Energy officially commenced fabrication activities at its newly developed yard in Ras Al-Khair, Saudi Arabia - a major milestone in its regional expansion. The first steel cut at the 400,000 sqm facility marks the start of operations, reinforcing the company's commitment to supporting Saudi Arabia's industrial growth and energy ambitions. Featuring advanced automation and digital systems, the yard provides fabrication, rigging, maintenance, and modularization services for complex energy infrastructure.

Strategic Collaboration with ADNOC L&S

NMDC Group signed a three-year agreement with ADNOC Logistics & Services to collaborate on offshore maritime services and logistics in Abu Dhabi. The partnership strengthens long-standing ties between the two entities, aiming to enhance efficiency and value creation in the emirate's offshore energy sector through integrated EPC and marine solutions.

A 3-year extension for the Long-Term Agreement with Aramco

NMDC Energy continues to strengthen its long-lasting relationship with Aramco, with a 3-year extension to its Long-Term Agreement ("LTA") and an option for an additional 3 years. NMDC Energy has been involved in multiple projects with Aramco since their previous LTA was signed in 2016. The services provided by NMDC Energy under the LTA cover detailed engineering, material procurement, fabrication, transportation, installation, and pre-commissioning of offshore facilities in connection with projects to be executed within Saudi

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NMDC Group FY2025 Earnings Release

‌Carbon reduction / Net Zero targets

Achieved a 6% reduction in Scope 1 and 2 GHG emissions intensity compared to the 2024 baseline, largely driven by the adoption of lower-carbon fleet models and efficiency gains from the Digital Operations Hub.

Transition to Electric-Powered Yard Equipment

Replacing combustion engine equipment with electric-powered alternatives at the MFY to reduce fuel consumption, lower emissions, and enhance operational efficiency.

Emergency Preparedness & HSE Drills

Carried out drills to assess operational readiness and response capabilities, H₂S Exposure, Rescue at Height, Abandon Ship, Fire, Spill Response, Heat Stress, Medivac, and Environmental Spill Simulations.

ESG Rating Upgrade

NMDC Group was upgraded to a 'Prime' ESG rating by Institutional Investor Services (IIS), an improvement from its previous 'Good' rating, reflecting the strengthening of its governance and environmental programs.

Resource Efficiency (Energy)

NMDC Energy Launched an Energy Efficiency Program focusing on optimizing power systems in sites, leading to an estimated 5% reduction in fuel consumption intensity.

Environmental Clean-up Campaign

At the Taziz Logistics Port Project, an Environmental Clean-up Campaign was conducted, with active participation from ADNOC management, NMDC site leadership, and the workforce

The Integrated Risk & Compliance (IRC) Platform

NMDC Group rolled out enhanced, standardized water measurement and reporting tools through the ongoing ERP integration to improve resource efficiency data quality.

Mangrove planting

NMDC D&M planted 6,100 mangroves conducted fully in-house using available resources and technical expertise, reinforcing biodiversity and coastal resilience.

Clean Energy

NMDC Energy implemented a Hazardous Waste Recycling Initiative, aimed at minimizing environmental impact and promoting responsible resource management

Quality Achievement HSE Performance

Strong HSE Culture on Major Projects

NMDC Infra received

• ISO 9001 (Quality)

• ISO 14001 (Environmental)

• ISO 45001 (Occupational Health & Safety)

management systems.

NMDC Group Delivered

107.3 million workhours with zero fatalities,

underscoring a strong safety culture and operational discipline.

Zero LTI at NOD and Jetty Area (NMDC Energy, (Al Yassat Island - NMDC D&M))

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NMDC Group FY2025 Earnings Release

Sustainability & HSE

NMDC Group Maintains MSCI AA ESG 'Leader' Rating

For the second consecutive year, NMDC Group has sustained its MSCI AA Leadership rating - a clear affirmation of our unwavering commitment to best-in-class sustainability governance, environmental stewardship and responsible operations.

NMDC Group has been recognized in Forbes Middle East's Top 100 Listed Companies list for 2025.

NMDC Group CEO, Eng. Yasser Zaghloul, was ranked #5 among Contractors on Construction Business News Middle East's Power 100 list for 2025. The recognition highlights his leadership in driving NMDC Group's growth, innovation, and successful project delivery, reflecting the dedication of the entire team.

NMDC Energy, a subsidiary of NMDC Group, was included for the first time in Forbes Middle East's Top 100 Listed Companies 2025 ranking.

Oil & Gas Middle East Awards 2025

EPC Contractor of the Year (2022-2025)

Yard Modernization Company of the Year (2024-2025)

The 2025 IPLOCA New Technologies Award

NMDC Energy received The 2025 IPLOCA New Technologies Award

for the AI - Powered Site Safety Monitoring System - New Technology Category.

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NMDC Group FY2025 Earnings Release

Abu Dhabi International Petroleum Exhibition & Conference -ADIPEC 2025

NMDC Energy & Baker Hughes Sign 2 MoUs

NMDC Energy signed a Memorandum of Understanding (MoU) with Baker Hughes to explore potential collaboration opportunities with regards to further increasing the localization of some Baker Hughes products and solutions in the Middle East, North Africa, Turkey, and India (MENATI) region by leveraging NMDC's state-of-the-art facilities and capabilities. Moreover, NMDC Energy has signed another strategic MoU with Baker Huges in Saudi Arabia to localize some of Baker Hughes key products and solutions in Saudi Arabia.

NMDC Energy and Hyundai Heavy Industries Sign a Strategic Cooperation Framework

NMDC Energy and Hyundai Heavy Industries (HHI), signed a strategic cooperation framework in the offshore energy and adjacent sectors, with the intent to leverage NMDC's regional presence and HHI's EPCI and fabrication capabilities. The entities will cooperate on a non-exclusive basis and may jointly pursue opportunities on a case-by-case basis within the Middle East, Africa, Europe and Southeast Asia.

NMDC Energy signed MoU with Energy Masters Enterprises (EM)

NMDC Energy signed an MoU with local UAE Company, Energy Masters Enterprises (EM) to cooperate in areas related to Electrical Submersible Pumps and adjacent sectors, leveraging NMDC's regional presence and EME's Electrical Submersible Pumps (ESP) supply, installation, commission and repair capabilities. Both companies intend to cooperate on a non-exclusive basis and may jointly pursue opportunities on a case-by-case basis within the Middle East, Africa, Europe and Southeast Asia

NMDC Energy signed an MoU with Engineers India Limited (EIL)

NMDC Energy signed an MoU with Engineers India Limited (EIL) to collaborate for the joint tendering and, if successful in award, extend the collaboration to the execution of onshore projects in KSA across sectors such as Oil and Gas Processing, Refineries, Petrochemicals, Pipelines, Storage Terminals and Energy Transition. The collaboration is for the delivery of Onshore EPC projects in Saudi Arabia across the full spectrum oil & gas segments, leveraging the fabrication facilities owned by NMDC in Ras Al Khair in Saudi Arabia and the design center established by EIL in Al Khobar.

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NMDC Group FY2025 Earnings Release

‌Make It In The Emirates (MIITE) 2025

NMDC Energy awarded ICV Excellence Award

NMDC Energy received the ICV Excellence Award in the category of Semi-Governmental Manufacturers at the Make it in Emirates forum in Abu Dhabi. The ICV Excellence Award recognizes manufacturers that have obtained the In Country Value certification and it celebrates their efforts to support the growth and development of local industries, businesses, communities, and talent in the UAE.

NMDC LTS and Huaying Valves sign an MoU

NMDC LTS, a business vertical of NMDC Group, has announced the signing of an MoU to explore the establishment of a Joint Venture with Jiangsu Huaying Valves Co. Ltd at the Make it in the Emirates forum to set-up a facility in the UAE which will assemble, fabricate, and distribute valves to be used in the energy sector.

NMDC Energy and Hilong Sign an MoU

NMDC Energy signed a Memorandum of Understanding (MoU) to explore collaboration with Shanghai Hilong Shine New Materials Co. LTD (Hilong), a company committed to R&D and manufacturing related to high-end coating and new materials for industrial heavy-duty anti corrosion, at the Make it in Emirates forum in Abu Dhabi. Both entities will explore the possibility of establishing Joint Venture agreements to conduct operations together in the UAE and the Kingdom of Saudia Arabia.

NMDC Energy and Al Gharbia Sign an MoU

NMDC Energy signed a strategic Memorandum of Understanding (MoU) with Al Gharbia, the Abu Dhabi based advanced pipeline manufacturer, to explore ways to accelerate pipe production in the UAE to meet local and regional demand. The partnership forms part of the MIITE mandate to drive industrial growth in the UAE, and it serves as another example of the increasing level of synergy between key local players in the UAE's industrial and energy landscape.

NMDC LTS and Chaoda Sign an MoU

NMDC LTS, has signed an MoU with China-based Chaoda to explore a Joint Venture for a valve assembly and distribution facility in the UAE. Announced at the MIITE forum, the project will support the regional energy sector and contribute to UAE's industrial growth and supply chain localization. The two parties will assess operational needs jointly, in line with NMDC's broader strategy for regional expansion and economic development.

NMDC D&M signs MOU with Jiangsu Juxin Petroleum Steel Pipe

NMDC D&M, subsidiary of NMDC Group signed an MoU with Jiangsu Juxin Petroleum Steel Pipe to explore establishing steel pipe manufacturing facilities in the UAE. The partnership aims to support major dredging and infrastructure projects, leveraging Juxin's expertise in welded steel pipes for offshore wind, ports, bridges, and rail. This initiative aligns with NMDC's strategy to boost local industrial capacity, enhance UAE-China industrial cooperation, and support the Group's regional and international expansion.

NMDC Group FY2025 Earnings Release

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‌Disclaimer

This document might include forward-looking statements. The forward-looking statements contained in this document speak only as of the date of this document. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of NMDC Group (the Company) and all of which are based on current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "believe", "expects", "may", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology. These forward- looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding intentions, beliefs and current expectations concerning, among other things, results of operations, financial standing, liquidity, prospects, growth, strategies, and dividend policy and the industry in which the Company operates.

These forward-looking statements and other statements contained in this document regarding matters that are not historical facts as of the date of this document involve predictions. No assurance can be given that such future results will be achieved. There is no obligation or undertaking to update these forward-looking statements contained in this document to reflect any change in the expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so: (i) as a result of an important change with respect to a material point in this document; or (ii) by applicable laws of the UAE.

Actual events or results may difer materially as a result of risks and uncertainties that the Company faces. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements.

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NMDC Group FY2025 Earnings Release

Group