The Nigerian Aviation Handling Company (NAHCO) Plc’s profit after tax rose by 19.2 percent to N16.04 billion in the nine months ended September 30, 2026, strengthening prospects for improved dividend payouts to shareholders as the aviation handling and logistics group sustained its growth momentum.
The company’s unaudited nine-month financial results released on the Nigerian Exchange (NGX) showed that revenue increased by 16.51 percent to N55.64 billion, from N47.76 billion in the corresponding period of 2025, while improved operating efficiency and lower finance costs supported growth in profitability.
Profit before tax rose by 18.39 percent to N21.24 billion, compared with N17.94 billion in the same period of 2025. Earnings per share also increased by 19.2 percent to N7.20 from N6.04, reflecting the improvement in the company’s bottom line.
The performance was supported by a 19.5 percent increase in operating profit to N21.66 billion, from N18.14 billion recorded a year earlier. Finance costs declined by 19.7 percent to N1.26 billion from N1.57 billion, helping to offset a 39.1 percent drop in finance income to N834 million from N1.37 billion.
Gross profit increased by 8.5 percent to N28.17 billion, compared with N25.97 billion in the corresponding period of 2025.
The stronger earnings position has improved the company’s capacity to reward shareholders, with dividend cover rising to 1.15 times in the nine months ended September 2026, compared with 0.97 times in the corresponding period of 2025.
This provides additional headroom for the board to consider improved dividend payouts, although any decision on future distributions will depend on the company’s financial position and the board’s approval.
At its annual general meeting in May 2026, NAHCO shareholders approved a combination of cash dividends and bonus shares for the 2025 financial year.
The company increased its cash dividend to N12.18 billion for the 2025 financial year, from N11.58 billion paid for 2024. Dividend per share also rose to N6.25 from N5.94.
Shareholders additionally received one ordinary share of 50 kobo each for every seven shares held, representing a 14.3 percent bonus issue.
The bonus issue increased the company’s outstanding shares from 1.949 billion ordinary shares to 2.228 billion ordinary shares. Despite the higher share base, the improvement in dividend cover indicates a stronger earnings position relative to its dividend obligations.
The company’s balance sheet also strengthened during the period, with total assets increasing to N58.85 billion in September 2026 from N55.12 billion in December 2025.
Paid-up share capital rose to N1.114 billion from N974.53 million, reflecting the bonus issue, while shareholders’ funds increased to N29.86 billion from N26 billion.
An analysis of the group’s performance ratios showed that operating efficiency improved despite persistent inflationary pressures. Gross profit margin moderated to 50.63 percent from 54.38 percent, reflecting cost pressures, but operating profit margin improved to 38.9 percent from 37.98 percent.
Pre-tax profit margin also increased to 38.17 percent from 37.56 percent, while return on equity rose to 53.72 percent from 51.77 percent. Return on total assets improved to 27.26 percent from 24.42 percent.
Seinde Fadeni, chairman of NAHCO, said the third-quarter performance demonstrated the group’s leadership in the aviation services industry and the resilience of its business strategy.
He said the company had continued to invest in human, technical and infrastructural capabilities that sustained its position as one of West Africa’s leading aviation handling and logistics groups.
Fadeni assured shareholders that the board remained committed to translating corporate growth into stronger returns for investors, whose confidence in the board and management had remained encouraging.
“We are confident about the outlook for the aviation industry and our business. We remain focused on our strategic plan on sustainability and diversification. We will continue to explore opportunities to grow the business and deliver competitive returns to our stakeholders,” he said.
Olumuyiwa Olumekun, the group managing director of NAHCO, attributed the performance to management’s emphasis on quality growth, business expansion, cost control and improved returns.
He said revenue growth reflected improvements across the company’s businesses, including aircraft handling, cargo operations and related services, supported by lower administrative expenses and finance costs.
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A breakdown of revenue showed that aircraft handling remained the group’s core business, while cargo handling revenue grew by about 31 percent, reflecting increased trade and e-commerce volumes.
Revenue from free zone, transhipment, logistics, ticketing and lounge services increased by 47.17 percent to N2.91 billion, while equipment rental and maintenance generated N4.45 billion.
Olumekun said the results reflected the quality of services and facilities the company had built over the years, adding that management remained committed to sustaining growth and delivering value to shareholders.
“Our performance highlights the quality of service and facilities that NAHCO has come to be known for. We remain committed to sustaining this growth trajectory and ensuring that our shareholders continue to enjoy the benefit of their investments,” he said.
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Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.
She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings.
Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
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