2PointZero Reports Strong Q1 Profit Following Mega-Merger

Financial Performance Highlights

2PointZero Group, an Abu Dhabi-listed investment holding company, announced a net profit of Dh2.3 billion for the first quarter of 2026. This marks the company’s first full quarter of results following its significant merger, highlighting the scale of the enlarged group amid challenging global market conditions. Revenue for the three months ending March reached Dh9.9 billion, a notable increase driven primarily by the consolidation of Tendam, Ghitha Holding, and the existing portfolio of 2PointZero.

The adjusted EBITDA, which excludes fair-value movements and one-off items, surged to Dh2.5 billion, compared to Dh0.5 billion a year earlier. The net profit also included Dh1.1 billion in unrealized revaluation gains linked to underlying investments. The operating profit saw a substantial increase, benefiting from enhanced scale and integration across its various businesses, with a gross profit margin of 30% indicating sustained profitability across core sectors.

Strategic Acquisitions and Expansion Plans

The quarter was also marked by significant strategic moves within the company’s portfolio. 2PointZero completed the acquisition of a 60.8% majority stake in Italy-based ISEM Packaging Group for Dh704 million, which adds packaging as a new consumer vertical. Additionally, the company participated in the Series G fundraising round of WHOOP, a fitness and health technology firm, further diversifying its investment strategy.

In a notable expansion into energy infrastructure, subsidiary ePointZero signed an agreement to acquire Traverse Midstream Partners for $2.25 billion. This acquisition provides 2PointZero with exposure to North American midstream assets, including stakes in the Rover Pipeline and Ohio River System, marking a significant step in its growth strategy outside the UAE.

Future Outlook and Digital Transformation

As of March 31, 2026, 2PointZero reported total assets of Dh135 billion, bolstered by a cash position of Dh9.5 billion and a debt-to-equity ratio of 0.31. The company’s investment portfolio was valued at Dh58.7 billion, reflecting a robust increase compared to the invested amount of Dh48 billion. Chief Executive Samia Bouazza emphasized that the group’s performance is a result of a long-term approach to capital allocation, focusing on sustainable growth rather than short-term gains.

Looking ahead, Bouazza stated that the focus for the remainder of 2026 will be on long-term value creation and compounding returns for shareholders. The group is also advancing digital transformation initiatives, incorporating artificial intelligence into operations, with AI-based co-workers now comprising 7% of the workforce in a hybrid organizational structure.

Frequently Asked Questions

What is 2PointZero’s net profit for Q1 2026?

2PointZero reported a net profit of Dh2.3 billion for Q1 2026.

What acquisitions did 2PointZero make recently?

2PointZero acquired a 60.8% stake in ISEM Packaging Group and participated in WHOOP’s Series G fundraising.

What is the significance of the Traverse Midstream acquisition?

The acquisition provides 2PointZero with exposure to North American midstream energy assets.

How is 2PointZero integrating artificial intelligence?

AI-based co-workers now account for 7% of the workforce, operating in a hybrid structure.

What is the company’s focus for the future?

2PointZero aims to create long-term value and compounding returns for shareholders.