Sanad Announces Strong H1 2024 Results of AED 2.3 Billion in Revenue, Projecting Significant Full-Year Growth

Total Revenue: AED 2.3 billion for the first half of 2024, projecting full-year revenue of AED 4.5 billion
Strategic agreements: Partnerships with Deucalion, Asiana Airlines, AerCap and CFM Materials bolster Sanad’s market position as a trusted partner of global aviation organizations
LEAP MRO Center Investment Fuels Growth: The substantial investment of over AED 100 million in the new LEAP MRO Center and significant growth in global air travel demand has fortified Sanad’s operational capabilities and elevated its performance to new heights in H1 2024

Abu Dhabi, United Arab Emirates – 18 July 2024: Sanad, the global aerospace engineering and leasing solutions leader wholly owned by Abu Dhabi’s sovereign investor Mubadala Investment Company PJSC (Mubadala), today announced its impressive performance for the first half of 2024. This achievement underscores the company’s strategic initiatives and growth trajectory within the global aviation industry.

Financial Performance

Sanad Group reported a revenue of AED 2.3 billion by the close of H1 2024, with significant contributions from its core Maintenance, Repair, and Overhaul (MRO) and Leasing divisions. The company projects continued growth in its topline and is expecting to generate revenues of AED 4.5 billion by the end of this year, marking a 28% increase over 2023 and doubling the revenue of 2022. The Group also continued to grow its global presence and generated new business outside the UAE, elevating the services of the business to an export-driven establishment, with approximately 96% of the Group’s revenue generated from outside the UAE.

Operational Highlights and Strategic Agreements

Sanad remains committed to its goal to becoming one of the leading independent engine MRO service providers globally. During the first half of the year, the company significantly bolstered its committed backlog through new agreements with major international airlines like Asiana Airlines and Deucalion Aviation, increasing Sanad’s global orderbook to AED 33 billion. This marks an addition of approximately 4 AED billion to its contracted business in 2024. The substantial growth in MRO revenue reflects Sanad’s successful integration of new capabilities whilst enhancing its operational efficiency, meeting the increasing demands of its global clientele.

The MRO Division showcased stellar results in H1 2024, with 160 engine inductions planned for the year, a 22% increase from 2023. This growth, driven by the resurgence in global air travel demand along with new strategic agreements with Deucalion Aviation and Asiana Airlines, saw 70 engines inducted across four product types in H1 2024. Investments exceeding AED 100 million in capability development, and facility upgrades alongside increased engine inductions of the CFM LEAP, Rolls-Royce Trent 700, International Aero Engines V2500, and GE Aerospace GEnx models highlight Sanad’s increased capacity and capabilities.

The Leasing division’s sale of two CFM56-7B engines to CFM Materials along with the completion of GE90 engines sale to AerCap, demonstrates its strong focus on executing its renewed strategy. This strategy emphasizes monetizing existing assets and expanding product offerings to support Sanad’s future growth plans.

Sanad has solidified its market position with strategic agreements with industry leaders like Deucalion Aviation, Asiana Airlines, AerCap, and CFM Materials. These partnerships, along with the projected doubling of the Middle East fleet by 2042, not only enhance current operations and pave the way for future aerospace sector agreements but also position Sanad for sustained growth and expansion. By reinforcing its pivotal role in global aviation, these collaborations underscore Sanad’s commitment to industry partnerships and innovation, ensuring its leadership in the evolving aerospace landscape.

Human Capital

Sanad’s strategic expansion emphasizes developing a world class, highly qualified workforce, achieving a 25% increase in employees since last year to 530 employees as of H1 2024, with a target of 630 by year-end. Emiratis currently constitute 28% of the workforce with ambitions to reach 30% by the end of the year. Sanad’s commitment to human capital development is evident through industry-academia partnerships, such as the second cohort of the Sanad Future Leaders Program with Embry-Riddle Aeronautical University, the US’ highest-ranking aviation school, showcasing Sanad’s dedication to advancing the next generation of Emirati leaders. Additionally, Sanad signed an MoU with Khalifa University to enhance partnerships with renowned academic institutions in the UAE, providing hands-on training and expert lectures from Sanad’s leadership team and experts to nurture local aviation talent.

Commitment to Quality and Safety

Further underscoring Sanad’s unwavering commitment to maintaining the highest quality and safety standards, the MRO division has obtained a new certification from the European Aviation Safety Agency (EASA), implementing the new Safety Management System (SMS), reinforcing its dedication to safety and quality. Sanad adheres to stringent safety and regulatory standards, working with over 23 aviation authorities worldwide, including EASA, FAA, and the Chinese aviation authority, enabling Sanad to provide its services globally, ensuring adherence to and exceeding international standards.

Leadership Statements

Amer Siddiqui, Group Chairman of Sanad, stated “Sanad’s vision to become a global aviation services champion is driven by a commitment to continuous innovation and industry-leading service standards. Our robust performance reflects our steadfast commitment to our strategic vision, which supports the UAE’s aviation ambitions on the global stage.”

Mansoor Janahi, Managing Director and Group CEO of Sanad, commented: “Our performance in H1 2024 reflects our unwavering commitment to excellence and strategic growth. As we look ahead, we are confident in our ability to continue delivering value and quality to our stakeholders and achieving our vision of becoming a global MRO champion.”

Future Outlook

As Sanad enters the second half of 2024, it remains focused on leveraging its strong operational performance to drive further growth and innovation. The company is exploring opportunities to expand geographically and diversify its services, including potential growth in its Airport Services division, aiming to provide comprehensive solutions across the aviation value chain.

With its strong performance in the first half of 2024 and clear strategic direction, Sanad, which is a trusted partner to over 30 customers spanning six continents, including world-leading international airlines and global Original Equipment Manufacturers (OEMs), is well-positioned for continued success, driving value and delivering engineering excellence for customers, employees, and stakeholders in the dynamic aerospace industry.