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 second quarter ended 30 June 2026 (“Q2” or “second quarter”).
Key Takeaways: Q2 2026 vs. Q2 2025
- Total revenues of AED 364.1 million (+14%)
- EBITDA of AED 217.2 million (+15%), at an EBITDA margin of 60%
- Net profit of AED 166.2 million (+12%)
- Total net addition of c.56.8k new spaces across entire parking portfolio (+27%)
- Total parking transactions of 34.0 million (+2.6%)
- Average public parking utilisation rate of 20.2% (-2.5 p.p.)
- Total public parking seasonal card sales of 97.5k (+38%)
- FY 2026 segmental revenue guidance updated, broadly in line with prior expectations
- Dividend policy remains unchanged
Operational Highlights
Financial Highlights
Eng. Mohamed Abdulla Al Ali, CEO of Parkin, commented:
“Parkin delivered a strong second quarter, with revenues up 14% to AED 364.1 million, EBITDA up 15% to AED 217.2 million and net profit up 12% to AED 166.2 million. Growth was driven by our seasonal cards, developer parking and enforcement segments, offsetting softer public parking demand during the quarter.
We continued executing our growth strategy, expanding our total parking portfolio by almost 57k spaces over the past 12 months. In cooperation with the RTA, we added 9.9k public parking spaces in the first half of 2026, while our developer parking portfolio more than tripled to 61.5k spaces through several strategic partnerships.
Seasonal card demand remained strong, with sales up 38% year-on-year, while enforcement revenues benefited from our technology-enabled compliance framework.
While we have prudently revised our public parking outlook to reflect the timing and ramp-up of newly added spaces, strong expectations for seasonal cards and developer parking leave our overall financial outlook broadly unchanged.
We remain committed to our dividend policy and to delivering sustainable long-term value for our shareholders."
Q2 2026 Operational Performance
Total Active Parking Spaces
The total number of parking spaces as at the end of Q2 increased by 27% to 268.3k (Q2 2025: 211.5k). The growth was driven by expansions across the entire portfolio, including public, developer and multi‑storey parking facilities, with developer parking contributing the largest share of the increase.
Public Parking
Public parking spaces increased by 14.5k (+8%), to 203.2k spaces in Q2 2026 (Q2 2025: 188.7k). In terms of new additions, zone C (on-street parking) saw the largest increase with 9.9k spaces added, while zone D (off-street parking) benefited from the addition of 4.5k new spaces.
In close co-operation with the RTA, during Q2 2026, a total of 7.9k new public spaces were added to the portfolio, with around 50% of these additions introduced in June, towards the end of the quarter.
Following the introduction of the variable parking tariff in Dubai in April 2025, the Company’s public parking portfolio was reclassified into Standard Parking and Premium Parking categories. As at the end of Q2 2026, Standard Parking comprised 122.7k spaces (60% of the total public parking portfolio), while Premium Parking comprised 80.3k spaces (representing the remaining 40%).
Developer Parking
On a net basis, developer parking spaces increased from 19.6k in Q2 2025 to 61.5k in Q2 2026. This material increase was as a direct result of several developer contracts that were signed and announced primarily in H2 2025.
Comparing the evolution of developer spaces between Q1 2026 and Q2 2026, 2.4k developer spaces were added in Q2 2026.
Multi-story Car Parking (MSCP)
MSCP spaces increased by 0.4k from 3.2k in Q2 2025 to 3.7k in Q2 2026. The newly refurbished Al Rigga MSCP re-opened in July 2025, restoring access to 440 spaces, equipped with barrierless, ticketless access technology.
Parking Transactions
Public parking transaction volumes declined to 27.2 million in Q2 2026 (Q2 2025: 29.2 million). The softer transaction volumes reflect a combination of factors, including the effect of geopolitical factors, the continued uptake of seasonal cards at tariffs that have not yet been revised and a slightly lower number of chargeable days during the quarter compared with the same period last year.
The developer parking segment recorded a 75% increase in transaction volumes, reaching 6.6 million parking transactions in Q2 2026 (Q2 2025: 3.8 million). This growth reflects the material expansion of the developer portfolio following the signing of multiple new contracts, mainly in H2 2025.
MSCP transactions remained stable at 0.2 million parking transactions in the quarter (Q2 2025: 0.2 million).
Public Parking Utilisation
The public parking utilisation rate in Q2 2026 stood at 20.2%, compared with 22.7% in Q2 2025 and 21.8% in Q1 2026.
As a reminder, the introduction of the variable tariff from Q2 2025, led to a shift in customer behaviour, with some customers taking advantage of the value proposition offered by unchanged seasonal card pricing. This resulted in some demand moving away from hourly and daily pay per use parking (particularly in Zones B and D), towards longer term seasonal cards.
When interpreting the Q2 2026 utilisation figure, several factors should be taken into account. During the quarter, customers purchased 97.5k seasonal cards, a 38% increase compared with Q2 2025 (70.9k). Seasonal card holders are not captured in the public parking utilisation rate, since the cards represent a separate revenue stream. In addition, utilisation was affected by regional geopolitical factors and a slightly lower number of chargeable days during the quarter.
The table below shows a breakdown of public parking utilisation, split between peak and off-peak hours.
The table below compares public parking utilisation, split between each of the public parking zones.
Public Parking Weighted Average Hourly Tariff
The weighted average hourly tariff remained broadly stable at AED 3.00, declining by 1% following the addition of new parking capacity in zones C+CP and D+DP over the past 12 months (14.5k spaces).
Public Parking Seasonal Cards Sales
Total public parking seasonal card sales increased by 38% to 97.5k in Q2 2026 (Q2 2025: 70.9k). Consistent with trends observed in prior quarters, demand was particularly strong for the 1-month seasonal card. Demand for longer-duration products, particularly the 12-month card, was comparatively softer, which reflects customers having purchased annual cards earlier in the year and therefore not yet requiring renewal
The overall ongoing growth in seasonal card sales volumes is supported by customers taking advantage of the price gap between the variable daily tariff effective April 2025 and the unadjusted seasonal card rates. The current purchase price of these seasonal cards represents a strong value proposition for frequent customers.
Enforcement
During Q2 2026, the Company’s field enforcement team scanned a total of 8.3 million vehicle registration plates, a 1% increase on Q2 2025 (8.2 million). Meanwhile, the Company’s fleet of smart inspection cars scanned a total of 20.6 million vehicle registration plates, a 52% increase on the same period last year (Q2 2025: 13.5 million). The total volume of enforcement notices issued by Parkin increased by 5% year-on-year, from 660k in Q2 2025 to 695k in Q2 2026. 71% of total enforcement notices in Q2 2026 (496k) were issued in relation to public parking violations (Q2 2025: 536k).
The increase in enforcement activity reflects the continued expansion of the Company’s parking portfolio, improvements in smart vehicle camera accuracy and the deployment of additional smart scan inspection vehicles during the quarter. Following a successful trial of a more compact car mounted smart scan camera system in Q1 2026, the Company expanded its smart scan inspection fleet to a total of 37 vehicles by quarter-end (Q2 2025: 25 units).
Q2 2026 Financial Performance
Total Revenue
Total revenue increased by 14% to AED 364.1 million (Q2 2025: 320.0 million), with notable year-on-year increases in revenue generated across developer parking, seasonal cards and enforcement. As at Q2 2026, revenues from developer parking and enforcement, for which Parkin is exempt from concession fees, constituted 39% of total revenues (Q2 2025: 37%).
Public parking revenue declined 8% to AED 121.9 million (Q2 2025: AED 132.2 million), reflecting lower hourly transaction volumes and utilisation as customers continued to shift towards seasonal cards, as well as the temporary impact of regional geopolitical developments. Average revenue per public parking space decreased 13% from AED 701 in Q2 2025 to AED 610 in Q2 2026. However, it should be noted that this metric was affected by the addition of a record 7.9k public parking spaces during the quarter, most of which were added towards quarter-end. As a result, the average revenue per space was diluted by the disproportionate increase in the parking space base relative to the revenue contribution generated in the reporting period.
In Q2 2026, peak hour parking generated AED 68.8 million (56% of total public parking revenue), while off peak hours contributed AED 53.1 million (44%).
Developer parking revenue increased 61% to AED 35.8 million in the period (Q2 2025: AED 22.3 million), supported by space growth and strong transaction volumes.
Revenue from seasonal cards and permits in Q2 2026 increased 50% to AED 78.2 million, due to the significant number of seasonal cards sold during the period (Q2 2025: 52.0 million).
Enforcement revenue increased by 11% to AED 107.5 million in Q2 2026 (Q2 2025: AED 96.7 million). The overall fine collection rate amounted to 75% during the quarter (Q2 2025: 83%). The lower collection rate is mainly attributable to the timing of enforcement, with a material volume of fines issued in June, resulting in some of the related collections being received post quarter end. We expect the collection rate to normalise in the coming quarters.
Concession Fee Expense
As part of the 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%.
In Q2 2026, the variable concession fee increased to AED 55.2 million (Q2 2025: AED 49.2 million), reflecting the strong performance of the Company's seasonal card segment.
Staff Costs
In Q2 2026, staff costs remained stable at AED 34.7 million, reflecting an average headcount of 361 employees (Q2 2025: AED 34.6 million and 350 employees). The Company maintained a disciplined approach to cost management during the quarter, with recruitment focused exclusively on critical operational and IT roles and no broad-based salary increases. Going forward, hiring will remain selective as Parkin continues to strengthen its operational and technology capabilities.
EBITDA
EBITDA increased by 15% in Q2 2026 to AED 217.2 million (Q2 2025: AED 189.3 million), at an EBITDA margin of 60% (Q2 2025: 59%). The EBITDA margin remained stable at 60% in Q2 2026, consistent with Q1 2026, with higher variable lease developer expense absorbed by revenue growth.
Net Profit
Net income for the period increased by 12% to AED 166.2 million (Q2 2025: 148.4 million). Bottom‑line growth was driven by higher revenue and marginally lower finance costs, partially offset by increased operating expenses, depreciation, tax and variable lease expense.
Free Cash Flow and Cash Conversion
By Q2 2026, the Company had generated AED 341.8 million of Free Cash Flow to Equity (Q2 2025: AED 312.0 million). Parkin continues to accelerate the collection of receivables.
The cash conversion rate in Q2 2026 was 96%, due to 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 Q2 2026, Parkin’s net debt position amounted to AED 710.1 million.³ Including the Murabaha revolving credit facility, which remains fully undrawn, the Company has available liquidity of AED 563.2 million.⁴
Dividend Policy
The Company maintains its dividend policy, with Parkin intending to pay semi-annual dividends in April and October of each year.
For H1 2026, Parkin expects to pay a minimum dividend equal to the higher of:
- 100% of net profit reported in H1 2026; or
- Free cash flow to equity, subject to distributable reserves requirements
Apr – Jun 2026 Operational KPI Split
To facilitate a better understanding of its Q2 2026 performance, the Company is providing a month-by-month breakdown of key operational KPIs. This additional transparency is intended to help investors better understand the effect of external factors during the quarter, compared to the same period in 2025.
Key observations:
- On a per chargeable day basis, total transaction volumes each month in Q2 2026 were ahead of the corresponding month in Q2 2025, with May 2026 narrowly outperforming June 2026 to deliver the strongest performance of the quarter. Although public parking transactions per chargeable day in June 2026 were 4% lower y.o.y., they remained broadly consistent with April 2026 levels.
- Expansion of the developer parking business resulted in a substantial increase in developer parking transaction volumes, with each month in Q2 2026 delivering double-digit growth compared with the corresponding month in Q2 2025 on a per chargeable day basis. June 2026 recorded the highest daily developer parking transaction volumes of the quarter.
- Public parking utilisation averaged at approximately 20% across the Q2 2026, up from the March 2026 low of 18.7%.
- Seasonal card sales continued to be strong with each month in Q2 2026 ahead of the equivalent month in 2025 and reflecting continued growth in card purchases at unadjusted rates. On a per chargeable day basis, May 2026 recorded the highest seasonal card sales volumes year-to-date, while June 2026 delivered the highest monthly sales volumes. The strong performance of seasonal card sales is a contributing factor to lower public parking utilisation rates, as seasonal card holders occupy parking capacity without generating a corresponding increase in transaction volumes.
- Enforcement activity was strongest in June 2026, both on an absolute basis and when adjusted for chargeable days.
FY 2026 Outlook
The Company remains well positioned to navigate the current operating environment and continues to benefit from the structural strengths of its business model. Following the initial guidance issued at the time of the Company’s FY 2025 results on 25 February 2026, management is pleased to provide revised guidance, based on its best assessment of the evolving regional landscape.
The overall financial outlook remains substantially unchanged, with slightly lower public parking revenues expected to be offset by higher revenues from seasonal cards and developer parking. Guidance for enforcement activity and capital expenditure remains unchanged.
Public Parking
Management initially anticipated expanding the public parking portfolio by up to 7.5k spaces in 2026. The successful delivery of 9.9k spaces in H1 2026 has prompted a reassessment of the outlook and management now estimate that an additional 3.5k to 5.0k spaces could be added by year end.
The public parking segment is now expected to generate revenue of AED 510 – AED 550 million (FY 2025: AED 524 million), compared with the previously guided range of AED 560 – 610 million. The revised outlook reflects two factors; (1) continued strong demand for seasonal cards, and (2) the timing of the rollout of new public parking spaces and the pace at which these new additions could reach expected utilisation levels.
Enforcement
The continued effectiveness of Parkin’s enforcement framework is anticipated to generate annual enforcement revenue of AED 420 – AED 460 million (FY 2025: AED 409 million) with guidance unchanged from previous expectations.
Seasonal Cards
The Company now expects seasonal card revenue of AED 280 – 300 million in 2026 (FY 2025: AED 211 million), an increase from previous guidance of AED 260 – 280 million, backed by continued strong customer demand.
Developer Parking
The private / developer parking segment is expected to contribute AED 130 – 150 million in revenue during 2026 (FY 2025: AED 94 million), compared with previous guidance of AED 110 –130 million.
As previously highlighted, 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 is expected to remain within the guided range of AED 45 – AED 55 million (FY 2025: AED 13.9 million), supporting developer contract obligations and technology improvements, including smart parking camera infrastructure. The total includes the previously announced investment of up to AED 20 million for Sports City.