NAHCO’s nine-month pre-tax profit rises 18.39% to N21.24 billion

Nigerian Aviation Handling Company Plc (NAHCO) has released its unaudited financial results for the nine months ended September 30, 2026, reporting a pre-tax profit of N21.24 billion, representing an 18.39% increase from N17.94 billion in the corresponding period of 2025.

The nine-month revenue increased by 16.51% to N55.64 billion from N47.76 billion, lifting profit after tax by 19.21% to N16.04 billion from N13.46 billion. Earnings per share also increased to 720 kobo from 604 kobo.

In Q3 2026, pre-tax profit increased by 11.76% to N6.87 billion from N6.15 billion in Q3 2025, supported by higher revenue from the company’s aviation handling and related businesses.

Key Highlights

Revenue: N55.64 billion (Up 16.51% YoY from N47.76 billion).
Gross profit: N28.17 billion (Up 8.49% YoY from N25.97 billion).
Operating profit: N21.67 billion (Up 19.43% YoY from N18.14 billion).
EPS: 720 kobo (Up 19.21% YoY from 604 kobo).
Operating costs: N27.47 billion (Up 26.07% YoY from N21.79 billion).
Administrative expenses: N6.68 billion (Down 18.27% YoY from N8.18 billion).
Finance costs: N1.26 billion (Down 19.65% YoY from N1.57 billion).
Total assets: N58.85 billion (Up 6.77% from N55.12 billion at December 2025).
Cash and cash equivalents: N9.52 billion (Down 15.03% from N11.21 billion).
Shareholders’ equity: N29.86 billion (Up 14.85% from N26.00 billion).

Driving the numbers

NAHCO’s nine-month earnings growth was driven by higher revenue from aircraft handling, cargo operations, agricultural produce and logistics services, supported by lower administrative expenses and finance costs.

Revenue increased by 16.51% to N55.64 billion, with aircraft handling remaining the largest contributor.
Aircraft handling revenue increased by 10.93% to N34.22 billion from N30.85 billion, accounting for 61.50% of total revenue.
Import cargo handling revenue increased by 43.19% to N8.63 billion, contributing 15.50%, while export cargo handling revenue rose by 43.47% to N1.51 billion, representing 2.72% of revenue.
Agricultural produce revenue increased by 176.56% to N3.93 billion from N1.42 billion, accounting for 7.06% of revenue.
Revenue from free zone, transhipment, logistics, ticketing and lounge services also increased by 47.17% to N2.91 billion, while equipment rental and maintenance generated N4.45 billion, up from N4.29 billion.

However, revenue expansion was accompanied by faster growth in direct operating costs.

Operating costs increased by 26.07% to N27.47 billion from N21.79 billion, outpacing revenue growth and placing pressure on gross profitability.
The cost increase included higher operational payroll and depreciation expenses. Payroll costs allocated to operations rose to N12.28 billion from N10.36 billion, while operational depreciation increased to N2.40 billion from N1.62 billion.

Consequently, gross profit increased at a slower rate of 8.49% to N28.17 billion from N25.97 billion.

Below the gross profit line, administrative expenses declined by 18.27% to N6.68 billion from N8.18 billion.

This reduction helped offset the increase in direct operating costs. Administrative payroll expenses declined to N2.15 billion from N2.43 billion, while board expenses fell to N595.06 million from N895.08 million.

Other income increased to N778.41 million from N352.44 million, providing further support to profitability.

However, the Group recognised N600 million in expected credit losses on trade receivables, compared with no corresponding charge in the prior-year period.

Despite this impairment charge, operating profit increased by 19.43% to N21.67 billion from N18.14 billion.
On the financing side, finance costs declined by 19.65% to N1.26 billion from N1.57 billion, reducing the burden of borrowing and lease-related obligations.
Finance income, however, declined by 39.09% to N834.10 million from N1.37 billion.
These movements resulted in a net finance expense of N429.68 million, compared with N203.59 million in the corresponding period of 2025.

Nevertheless, higher operating profit supported an 18.39% increase in pre-tax profit to N21.24 billion.

After income tax expenses of N5.20 billion, profit after tax increased by 19.21% to N16.04 billion, while earnings per share rose to 720 kobo.

Balance sheet

Total assets increased by 6.77% to N58.85 billion as of September 2026, from N55.12 billion at December 2025, supported partly by higher trade receivables and prepayments.

Trade and other receivables increased by 32.58% to N14.76 billion from N11.13 billion, while prepayments rose to N3.56 billion from N1.25 billion.
However, cash and cash equivalents declined by 15.03% to N9.52 billion from N11.21 billion.
Shareholders’ equity increased by 14.85% to N29.86 billion from N26.00 billion, supported by retained earnings.

Net cash generated from operating activities declined by 11.29% to N14.90 billion from N16.79 billion, reflecting working capital movements and higher tax payments.