Emaar Properties: revenue growth slows to +18.2%, but 9.1% dividend yield supports valuation

On August 31, Emaar Properties reported Q2 2026 results: revenue grew 18.2% YoY, EBITDA 15.7%, net profit 9.0%. The deceleration is evident, but shares trade at P/E of 5.1 and dividend yield of 9.1%, making them attractive for income-focused investors.

Key takeaways

— Q2 2026 revenue grew 18.2% YoY, but this is the lowest in the last five quarters

— EBITDA margin declined to 48.1% from 49.2% a year earlier, reflecting higher costs

— Net profit rose only 9.0% due to net margin compression to 31.9%

— Operating cash flow in Q2 fell to 4,052.6 million AED, but remains high over 12 months

— Dividend yield of 9.1% is above the three-year average, making the share attractive for income

— P/E of 5.1 and EV/EBITDA of 3.8 are well below their own three-year averages

— According to the portal's model, the share has 10% upside potential

Attractiveness

Key figures, AED bn

Q2 2026 revenue grew 18.2% YoY, but this is the lowest in the last five quarters

In Q2 2026, Emaar Properties' revenue reached 11,509.5 million AED, up 18.2% YoY. This is a notable slowdown compared to previous quarters: Q1 2026 growth was 22.8%, and Q4 2025 growth was 40.5%.

Nevertheless, trailing twelve-month revenue reached 53,600.0 million AED, confirming business resilience. The slowdown may be due to a high base effect, but absolute figures remain strong.

EBITDA margin declined to 48.1% from 49.2% a year earlier, reflecting higher costs

EBITDA in Q2 2026 grew 15.7% to 5,537.0 million AED, but margin contracted by 1.1 percentage points to 48.1%. A year earlier, margin was 49.2%. The decline indicates faster growth in operating expenses.

Trailing twelve-month EBITDA reached 25,475.6 million AED, providing a stable base for valuation. Despite margin decline, absolute profitability remains high.

Net profit rose only 9.0% due to net margin compression to 31.9%

Net profit in Q2 2026 was 3,672.6 million AED, up 9.0% YoY. Net margin fell to 31.9% from 34.6% a year earlier. The compression is due to higher costs and possibly increased tax burden.

Trailing twelve-month net profit reached 19,189.3 million AED, implying a net margin of about 35.8%. This confirms the company's ability to generate profit even amid slowing growth.

Operating cash flow in Q2 fell to 4,052.6 million AED, but remains high over 12 months

Operating cash flow in Q2 2026 was 4,052.6 million AED, significantly lower than the year-ago figure (9,879.4 million AED). However, trailing twelve-month operating cash flow reached 33,500.0 million AED, indicating strong cash generation.

Capital expenditure in Q2 was moderate at 209.0 million AED, leaving substantial free cash flow. This is important for assessing the company's ability to fund dividends and growth.

Dividend yield of 9.1% is above the three-year average, making the share attractive for income

Over the trailing twelve months, Emaar Properties paid dividends yielding 9.1% on the current price. This is above the three-year average dividend yield, making the share attractive for income investors.

Our estimate suggests the company will maintain high payouts this year, supported by strong operating cash flow and moderate capex. However, the dividend size will depend on payout policy and potential one-offs.

P/E of 5.1 and EV/EBITDA of 3.8 are well below their own three-year averages

Current P/E is 5.1, and EV/EBITDA is 3.8. Both multiples are well below their three-year averages (EV/EBITDA average is 5.6). This indicates the stock is undervalued relative to its own history.

Low multiples are explained by slowing growth and margin compression, but with high dividends and stable cash flow, the share looks attractive.

According to the portal's model, the share has 10% upside potential

Our value-creation model, based on EBITDA growth and target multiple, indicates the share has +10% upside to fair value. This is a moderate upside, supported by low valuation and high dividend yield.

The portal's model is not a market consensus and reflects only our internal calculation. Nevertheless, it aligns with the conclusion that the stock is undervalued.

Valuation on the latest reported figures

Bottom line

Emaar Properties showed slowing growth but maintained high profitability and strong cash flow. The main attraction is the 9.1% dividend yield and low multiples (P/E 5.1, EV/EBITDA 3.8) relative to its own history. No one-offs in profit were identified, but net margin decline warrants attention. At the current price, the share looks attractive for income investors, with 10% upside per the portal's model.