Aramex a leading global provider of comprehensive logistics and transportation solutions, today announced its financial results for the First Quarter (“Q1’’) ending 31 March 2025.
Financial Performance Commentary
Aramex delivered modest topline growth in Q1 2025, with revenue up 1% YoY to AED 1.56 billion, driven by revenue growth in Domestic Express (up 13%), Freight Forwarding (up 9%), and Logistics (up 21%), which offset the decline in International Express (down 13%).
The company’s strategy continues to evolve in response to nearshoring-led shifts in logistics flows. As more clients bring inventory closer to consumers, Aramex has seen stronger demand in Domestic Express, warehousing, and regional cross-border services, leading to a recalibration in its margin profile. Gross Profit was AED 365 million (–8% YoY) and GP margin was 23%, attributed to a lower contribution from international express and an increase in direct costs.
The company is navigating this transition with a clear focus on operational efficiency, performance management, and customer-centric innovation. While the transition in product mix presents margin volatility in the short term, the Company made good progress with growth in volumes across domestic express and all freight forwarding products, as well as an increase in utilization across its warehouses.
The GCC region remained pivotal, highlighting the strength of Aramex’s home markets. Revenue in the GCC increased 15% YoY in Q1 2025, with the region now contributing 44% of total group revenues, a significant increase from the 39% contribution to total revenues reported at Q1 2024. MENAT, India and Sub-Saharan Africa contribute 20%; Europe and US contribute 20% as well, and Asia Pacific contributes 16% to total group revenues.
Group Selling, General, and Administrative Expenses (SG&A) were up 1% YoY, and represented 20% of total revenues, in line with management’s focus on cost controls.
EBITDA was AED 147 million (–19%) and EBIT was AED 61 million (–34%) due to the decline in Gross Profit. For the period ending March 31st, 2025, the Effective Tax Rate (ETR) increased to 33%, due to the introduction of domestic income tax in GCC countries, in addition to the change in the profit mix during the year, with more contributions coming from higher tax jurisdictions.
During Q1 2025 the Company incurred non-operational expenses associated with legal and consultancy fees for the Q Logistics Acquisition Offer. Normalized Net Profit, excluding these non-operational expenses, was AED 25 million in Q1 2025, down 46% from AED 47 million in Q1 2024.
Reported Net Profit for the first quarter of 2025 was AED 17 million. These results reflect a broader pivot toward more regionalized, service-intensive logistics, and Aramex’s investments to support this shift.
Nicolas Sibuet, Acting Group Chief Executive Officer said: “This quarter reflects both continuity and change — stable revenues, healthy volumes, and a clear shift in customer behaviour. As supply chains become more regional and service expectations evolve, Aramex is well placed to deliver agile, integrated solutions that meet the moment. To accelerate our journey, we have launched a company-wide transformation initiative under our strategy Accelerate28 to help us adapt with purpose, focusing on efficiency and performance.”
The courier business reported volume growth of 2% YoY in Q1 2025 compared to the same period last year, as the business continues to see the flow of volumes from international express into domestic express, reflecting the ongoing nearshoring trend from current customers. We expect to continue seeing an impact throughout the first half of 2025.
Q1 2025 revenue was AED 991 million, a 3% decline YoY attributed to a 13% decline in International Express revenues which was partially offset by a 13% growth in Domestic revenues in Q1 2025 compared to Q1 2024. An increase in direct costs and inflationary pressures contributed to the decline in profitability of the Courier product, in addition to the changes in customer mix. Gross profit declined 13% in Q1 2025 to AED 272 million and the gross profit margin declined to 27%.
Freight Forwarding recorded a 9% YoY revenue increase in Q1 2025 to AED 433 million, with broad-based volume growth across air, land, and sea. Air freight volumes were up 2%, sea freight (LCL) increased 26%, and land freight (LTL) jumped 21%, driven by growth in e-commerce and energy.
Gross Profit for the segment rose 7% YoY to AED 61 million, with a stable margin of 14%. While pricing pressure and competition remain industry-wide challenges, Aramex remains focused on operational efficiency and customer service.
Logistics and Supply Chain Solutions delivered one of the strongest performances in Q1 2025. Revenue surged 21% YoY to AED 129 million, supported by higher warehouse utilization, new client contracts, and expanded capacity.
Gross Profit jumped 40% YoY to AED 23 million, with the margin improving to 18% in Q1 2025, up from 15% in Q1 2024. The segment continues to benefit from the nearshoring trend and Aramex’s investment in scalable logistics infrastructure.
