Nigerian Aviation Handling Company (NAHCO) Plc has continued its impressive growth trajectory, posting double-digit gains across key performance indicators in the third quarter of 2026. The results, released at the Nigerian Exchange (NGX), underscore the brand preference and operational efficiency that have defined NAHCO as West Africa's leading aviation handling and logistics group.
The interim report and accounts for the nine-month period ended September 30, 2026, showed that total revenue rose by 16.51 per cent, while higher operating margins drove operating profit up by 19.5 per cent. A 19.7 per cent decline in finance costs helped moderate a 39.1 per cent drop in finance income, leaving pre-tax profit higher by 18.39 per cent. After taxes, net profit increased by 19.2 per cent, and earnings per share rose by the same margin.
Total revenue climbed to N55.64 billion in Q3 2026 from N47.76 billion in the comparable period of 2025. Gross profit grew by 8.5 per cent from N25.97 billion to N28.17 billion. Operating profit improved from N18.14 billion to N21.66 billion. Finance costs fell from N1.57 billion to N1.26 billion, though finance income dropped substantially from N1.37 billion to N834 million. With increasingly efficient cost management, profit before tax reached N21.24 billion in Q3 2026 compared with N17.94 billion in the same period of 2025. After taxes, net profit increased from N13.46 billion to N16.04 billion. Earnings per share stood at N7.20 in Q3 2026, up from N6.04 in Q3 2025.
The strong third quarter performance positions NAHCO on solid ground to sustain its consecutive improvements in dividends over the past five years. Despite an increase in outstanding shares following a bonus issue for the 2025 business year, Q3 2026 dividend cover stands at 1.15 times as against 0.97 times for the same period in 2025, giving the company ample room to consider higher dividend payouts.
Shareholders approved a combined cash and bonus share dividend at their annual general meeting in May 2026. The company raised its cash dividend to N12.18 billion for the 2025 business year from N11.58 billion paid in 2024. Shareholders received N6.25 per share for 2025, compared with N5.94 in the previous year. For every seven ordinary shares held, shareholders also received one ordinary share of 50 kobo each as a bonus, automatically increasing their holdings by 14.3 per cent. This boosted the company's outstanding paid-up shares from 1.949 billion to 2.228 billion ordinary shares of 50 kobo each.
The balance sheet also emerged stronger, reflecting the robust operational foundation underpinning the group's activities. Total assets rose from N55.12 billion in December 2025 to N58.85 billion in September 2026. Paid-up share capital increased from N974.53 million to N1.114 billion following the bonus issue. Shareholders' funds grew from N26 billion to N29.86 billion.
Underlying performance ratios confirmed that the group's overall performance was driven by business growth and operational efficiency. While gross margin compressed from 54.38 per cent to 50.63 per cent due to inflationary pressures, operating profit margin improved from 37.98 per cent to 38.9 per cent. Pre-tax profit margin also rose from 37.56 per cent to 38.17 per cent. Return on equity stood at 53.72 per cent, up from 51.77 per cent. Return on total assets rose from 24.42 per cent to 27.26 per cent.
Dr Seinde Fadeni, Chairman of NAHCO Plc, said the third quarter 2026 performance demonstrated the group's leadership in the aviation services industry and the resilience of its business strategy. He noted that NAHCO has continued to invest in human, technical, and infrastructural capabilities that have sustained its position as the most-preferred and largest aviation handling and logistics group in West Africa. He assured shareholders that the board remains committed to translating corporate growth into bigger returns, expressing confidence in the outlook for the aviation industry.
Mr Olumuyiwa Olumekun, Group Managing Director of NAHCO Plc, attributed the revenue growth to improvements across the businesses, including aircraft handling, cargo operations, and related services, supported by lower administrative expenses and finance costs. Cargo handling grew by approximately 31 per cent, reflecting increased trade and e-commerce volumes. Revenue from free zone, transhipment, logistics, ticketing, and lounge services jumped 47.17 per cent to N2.91 billion, while equipment rental and maintenance generated N4.45 billion. He said the performance highlights the quality of service and facilities that NAHCO is known for and reaffirmed the company's commitment to sustaining its growth trajectory.