The Nigerian Aviation Handling Company (NAHCO) has had a standout year on the NGX.
With a market cap of N193 billion and a 115% year-to-date share price gain, the stock has easily outperformed the broader market.
But the shine has not been perfect; the stock has also lost 21% in the last four weeks, reminding investors that even strong performers can face turbulence.
A business delivering big numbers
NAHCO delivered strong 9M 2025 results, reporting a 47% increase in profit after tax to N13.46 billion, already surpassing its full-year 2024 profit by 5%.
Revenue continues to be driven by cargo handling, which now accounts for over 64% of total turnover.
Total revenue of N47.76 billion for the period represents a major leap and puts the firm firmly on track to beat its 2024 full-year figures.
This isn’t a one-off spike. For the past five years, NAHCO’s revenue has grown at a CAGR of 49.68%, meaning the company has been compounding its growth long before the stock market caught on.
Operating profit rose to N18 billion, and even with high overhead costs (about 37% of gross profit), NAHCO maintained a healthy 38% operating margin.
The company has also built a reputation as a strong dividend payer ,moving from 13 kobo in 2020 to N5.94 in 2024; a staggering rise supported by solid earnings growth and a 90% dividend payout ratio in 2024.
So, with 2025 already outperforming last year, it’s no surprise that investors are expecting an even bigger dividend cheque next year.
The company has given the market every reason to demand more and every reason to watch closely whether this kind of growth can be repeated.
But beneath the strong headline numbers, pressure is beginning to build in its working capital, hinting that sustaining this momentum may not be as effortless as the earnings suggest.
The cash flow
But behind the big headline numbers, the cash-flow story reveals an important shift.
The company delivered N16.8 billion in operating cash flow in 9M 2025, a huge leap from the N3.06 billion recorded in the same period last year.
That kind of improvement usually tells you a business is firing on all cylinders, and to a large extent, NAHCO is.
However, when you look closer, you begin to see the pressure points building under the surface.
Receivables dropped sharply, a good thing as customers paid faster than they did last year. But the payables also dropped.
NAHCO paid suppliers quickly, which pulled cash out of the system. Trade payables fell from N13.9 billion at the end of 2024 to N13 billion in September 2025, and the cash flow statement shows a N1.18 billion outflow from payables alone.
Tax payments also nearly doubled, adding to the cash strain.
So yes, the operating cash flow is strong. But the business is also spending more cash to meet obligations faster.
That’s not necessarily a bad sign; it often means management is strengthening relationships or cleaning up the balance sheet.
But it is worth watching, especially for a stock that has already run this far.
Bottom line
NAHCO is clearly a high-performing business with strong revenue growth, rising profits, and a loyal dividend story.
Its share price has rewarded investors handsomely this year, even with the recent pullback.
- But the cash-flow trend requires attention. The improvement seen in 9M 2025 is driven largely by better receivables management rather than a deeper expansion of cash-generating power.
- This doesn’t signal trouble, far from it. But for a company expanding this quickly, working-capital management becomes critical.
- Sustaining high dividends, funding growth, and maintaining balance sheet strength will depend on NAHCO’s ability to keep generating strong, repeatable operating cash flow.
- For now, NAHCO remains a strong stor,y but one where investors must keep an eye on the cash engine powering the growth.
