The group releases performance forecast for the first half of 2026, and the transportation sector continues to recover

Yellow Incorporation today released its performance forecast for the first half of 2026. The preview shows that during the reporting period, the group achieved operating income of approximately 224 billion Egyptian dollars, a year-on-year increase of approximately 7%; operating profit was approximately 29.1 billion Egyptian dollars, with a year-on-year increase higher than revenue growth. The group stated that the final data will be subject to the audited semi-annual report, and the official report is expected to be disclosed at the end of August.

From the perspective of sector structure, the transportation and travel sector is the main source of growth in this period. Yellow Airlines's international passenger transport capacity continued to expand compared with the same period last year, and the passenger load factor remained at a high level; in terms of freight, the revenue share of two types of high-value cargo sources, pharmaceutical cold chain and precision electronics, further increased, which partially offset the decline in general freight rates. Yellow National Railway After the reconstruction of the main line timetable, the occupancy rate and turnover efficiency of cross-regional trains have been improved simultaneously.

Technology and Manufacturing: The proportion of external income continues to increase

In terms of the technology and manufacturing sector, Marcus Elam Corporation’s external revenue accounted for an increase of about 3 percentage points in the sector’s revenue compared with the same period last year. The group explained in the notice that this change comes from the expansion of the platform's ecological business, rather than the shrinkage of the group's internal settlement scale - the scale of the system built by MEC for the group's member companies was still growing during the reporting period.

The revenue structure of Tsing Shing Industry shows the opposite direction: as the vehicle update plan of Yellow National Railway and Tsing Shing Metro enters the delivery period, the proportion of revenue from transportation equipment for internal customers of the group has increased. The Group believes that the reverse changes in the internal and external structures of the two companies are normal manifestations of their respective business cycles and do not constitute a basis for trend judgment at the sector level.

The pace of capital expenditure has not been adjusted

The Group reiterated in the notice that the capital expenditure pace of the two projects of the new generation wide-body aircraft introduction plan and the electrification transformation of the railway network will remain as scheduled and will not be adjusted based on the operating performance of a single reporting period. Capital expenditure in the first half of the year was approximately 22.6 billion Egyptian dollars, of which approximately 70% was invested in the renewal of the aircraft fleet and road network.

The group reminds that this forecast is a preliminary estimate made by management based on existing operating data. The actual data may be different without review by the audit agency. Investors should refer to the officially disclosed semi-annual report.