Investors double holdings as NAHCO Shares jump 124%

By Chukwuma Umeorah

Shareholders of Nigerian Aviation Handling Company (NAHCO) Plc have more than doubled the value of their investments within the first four months of 2026, as the company’s shares rallied 124.07 per cent on the back of strong earnings and improved operational performance.

Trading data on the Nigerian Exchange (NGX) showed that NAHCO emerged as one of the top-performing stocks, significantly outperforming the market’s average year-to-date return (YTD) of 45.05 per cent. The stock’s performance also exceeded the average return on the NGX main board and that of the market’s 30 largest companies.

The rally translated into sharp gains for investors. In real terms, a portfolio valued at N100,000 at the beginning of the year is now worth about N224,070, while a N1 million investment has risen to approximately N2.24 million.

Chairman of NAHCO, Dr Seinde Fadeni, said the performance reflected a combination of revenue growth and cost control.

“Our operational excellence continues to show in every financial results. In 2025, NAHCO recorded impressive growths across key performance indicators, combining a strong push for market share with disciplined cost management. The resultant effect is double-digit growths in revenues and profitability,” Fadeni said.

He added that the company’s dividend policy remains supported by earnings capacity.

“We are committed to translating corporate growth to improved returns to our shareholders, through increased payout and sustainable management of the group. It’s important to note that beyond dividend payout, the value the company has built for its shareholders is seen in investors’ perception and valuation of its shares, which has remained one of the all-time best performers at the Nigerian stock market,” he said.

The sustained price appreciation followed the release of the company’s audited financial statements for the year ended December 31, 2025, which showed growth across key earnings indicators.

NAHCO reported a 21.8 per cent increase in revenue to N65.21 billion in 2025 from N53.54 billion in 2024. Gross profit rose to N38.61 billion from N33.08 billion, while operating profit grew by 25 per cent to N24.84 billion.

Profit before tax increased by 30 per cent to N24.26 billion, compared to N18.70 billion in the previous year. Profit after tax rose by 39.91 per cent to N18.00 billion from N12.87 billion, while earnings per share climbed to N9.24 from N6.60.

Balance sheet indicators also improved. Total assets increased to N53.88 billion from N46.95 billion, while shareholders’ funds rose by 32 per cent to N26.50 billion.

Financial ratios reflected improved efficiency, with operating profit margin rising to 38.09 per cent from 37.06 per cent. Pre-tax margin increased to 37.2 per cent from 34.93 per cent, while return on total assets improved to 45.02 per cent.

The company’s board has proposed a total dividend payout of N12.18 billion for the 2025 financial year, up from N11.58 billion in 2024. Shareholders are to receive N6.25 per share, compared with N5.94 in the prior year.

In addition, the board recommended a bonus issue of one ordinary share for every seven shares held, increasing shareholders’ holdings by about 14.3 per cent.

Group Managing Director, Mr Olumuyiwa Olumekun, attributed the performance to operational expansion and efficiency gains.

“We are not only driving sales and expanding market share, we are doing that with extremely impressive efficiency. Despite the inflationary environment and challenges in the operating economy, our operating profit margin improved from 37.05 per cent in 2024 to 38.08 per cent in 2025. We remain focused in sustaining this, while exploring emerging opportunities,” Olumekun said.

Market analysts said the company’s relatively high free float, estimated at 56.68 per cent, has supported liquidity and price discovery, with a significant portion of shares held by retail investors.

More than 1.1 billion shares are held by individual investors, reflecting broad participation and linking the stock’s performance closely to general market sentiment.

The company’s share price had earlier risen from N46.05 in 2024 to N108 in 2025, reinforcing its position among the best-performing equities on the exchange.