Parkin updates 2026 guidance

Parkin raised its 2026 seasonal card revenue guidance to AED 280-300 million on continued strong customer demand.

Parkin announced updated guidance for its 2026 financial outlook, based on management’s best assessment of the evolving regional landscape.

Parkin said in its Q2 2026 results report that the company remains well positioned to navigate the current operating environment and continues to benefit from the structural strengths of its business model.

The overall financial outlook remains substantially unchanged from the previous guidance announced in February 2026, with slightly lower public parking revenue expected to be offset by higher revenue from seasonal cards and developer parking. Guidance for enforcement activity and capital expenditure remains unchanged.

Management initially anticipated expanding the public parking portfolio by up to 7.5 thousnd spaces in 2026. The successful addition of 9.9 thousand spaces in H1 2026 prompted a reassessment of the outlook, with management now expecting to add a further 3.5-5.0 thousand spaces by year-end.

The company now expects the public parking segment to generate revenue of AED 510-550 million in 2026, compared with its previous guidance of AED 560-610 million.

The revised outlook reflects continued strong demand for seasonal cards, as well as the timing of the rollout of new public parking spaces and the pace at which these additions could reach expected utilisation levels.

Management expects the continued effectiveness of Parkin’s enforcement framework to generate annual enforcement revenue of AED 420-460 million in 2026, compared with AED 409 million in 2025, with guidance unchanged from previous expectations.

The company now expects seasonal card revenue of AED 280-300 million in 2026, up from its previous guidance of AED 260-280 million, supported by continued strong customer demand.

The private/developer parking segment is expected to contribute AED 130-150 million in revenue during 2026, compared with previous guidance of AED 110-130 million.

The company noted that in 2025 it entered into several low-margin developer agreements under which it is required to pay a minimum annual guarantee and/or a fixed annual fee, in line with common market practice in the sector. As a result, while segment revenue is expected to grow in 2026, margin expansion will remain constrained.

The fixed components of these agreements, including minimum annual guarantee fees and fixed annual fees, will be recognised below EBITDA as amortisation of right-of-use assets and interest on lease liabilities, increasing the company’s depreciation expense and finance costs.

The company expects capital expenditure to remain within the guided range of AED 45-55 million, compared with AED 13.9 million in 2025.

The expenditure will support developer contract obligations and technology improvements, including smart parking camera infrastructure. The total includes the previously announced investment of up to AED 20 million in Dubai Sports City.