NAHCO Raises Dividend Expectation with 40% Profit Growth

Kayode Tokede

West Africa’s largest aviation services group, Nigerian Aviation Handling Company (NAHCO) Plc recorded impressive growths across key performance indicators in 2025, with net profit rising by 40 per cent to N18 billion.

The full-year results for the year ended December 31, 2025 released at the Nigerian Exchange (NGX) showed that NAHCO continued to grow its business apace whilst driving business efficiency to create bigger value for shareholders.

The unaudited results showed that total revenue rose by 21.8 per cent from N53.54 billion in 2024 to N65.21 billion in 2025. Gross profit increased from N33.08 billion to N38.61 billion. Despite the inflationary environment, increasing digitization and business know-how held down administrative expenses, almost unchanged at N13.89 billion in 2025 as against N13.82 billion in 2024. Operating profit thus rose by 25 per cent from N19.84 billion in 2024 to N24.84 billion in 2025.

Profit before tax jumped by 30 per cent to N24.256 billion in 2025 as against N18.702 billion in 2024. After taxes, net profit grew by 39.91 per cent from N12.865 billion to N17.999 billion. With this, earnings per share leapt by 40 per cent from N6.60 in 2024 to N9.24 in 2025.

The interim report for 2025 underscores the capability of the leading ground handling group to sustain its market-leading returns to shareholders.

Despite 134 per cent increase in dividend per share for the 2024 business year, the group’s dividend cover improved to 1.56 times in 2025 as against 1.11 times in 2024, underlining the significant headroom for the group to continue its impressive dividend payment record.

NAHCO’s balance sheet also emerged stronger, reflecting internally driven expansion in equipment and reserves. Total assets increased from N46.95 billion to N53.88 billion. Shareholders’ funds leapt by 32 per cent from N20.075 billion to N26.497 billion, showing high level of retained earnings.

Beyond-the-surface analysis further corroborated the positive outlook of NAHCO, with key performance ratios showing that the group’s performance was driven by operational growth and business efficiency. Operating profit margin improved from 37.05 per cent in 2024 to 38.08 per cent in 2025. Pre-tax profit margin rose from 34.9 per cent to 37.2 per cent. Return on total assets stood at 45.02 per cent in 2025 as against 34.93 per cent in 2024. Return on equity improved from 64.08 per cent to 67.93 per cent.

NAHCO had distributed N11.58 billion as cash dividends for the 2024 business year, representing a dividend per share of N5.94, compared with N4.95 billion paid for the 2023 business year.

Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mr Olumuyiwa Olumekun, said the 2025 performance reflects continuing resilience of NAHCO’s strategic growth plan.

He said continuing investments in technology and human capital have ensured that NAHCO remains at the utmost competitive edge of the regional aviation services industry.

He pointed out that expansive investments in export processing and warehouses across the country place NAHCO at a vantage position to play major role in Nigeria’s quest for $1 trillion economy, while creating competitive value for its shareholders.

He reiterated that the group remains focused on four areas of sustained growth, equipment re-fleeting, digitization and environmental social governance (ESG) to ensure better performance in the period ahead.

“Our 2025 results show we remain firmly on track. We have invested so much in recent period in upscaling our equipment and human capacity, and this is evident in the services and results that we are getting. We remain committed to sustaining our leadership as the most preferred total logistics group, supporting the nation’s economic growth while ensuring improving returns to our shareholders,”. Olumekun said