Altron Limited (AEL) H1 2026 earnings summary

Executive summary

• Achieved strong performance in continuing operations for the six months ended 31 August 2025, with EBITDA up 4% to R938m and operating profit up 15% to R549m, despite a 1% revenue decline to R4.8bn.

• Platform businesses delivered double-digit revenue and operating profit growth, offsetting significant headwinds in IT services and distribution.

• Interim dividend increased by 20% to 48cps, with a payout ratio of 48% of headline earnings per share.

• Sale of Altron Nexus completed during the period, impacting group revenue and EPS.

• Launched South Africa's first operational AI Factory, supporting customer AI development and innovation.

Financial highlights

• EBITDA up 4% to R938m and operating profit up 15% to R549m in continuing operations; headline earnings per share up 22% to 96c, and EPS up 12% to 84c.

• Group results: revenue down 4%, EBITDA up 2%, operating profit up 11%, headline EPS up 18%, but group EPS down 6% due to Nexus disposal.

• Cash generated from operations up 7% to R784m; net cash of R324m after loan and dividend payments.

• Dividend payout policy increased to at least 50% of headline earnings per share.

• Capital expenditure totaled R370m, with R342m directed to growth initiatives.

Outlook and guidance

• Medium-term operating profit margin target for platform businesses raised to above 22%; Netstar targeted for above 18%, IT services for above 7%.

• No significant improvement expected in the operating environment; focus remains on disciplined execution, margin expansion, and capital allocation to platforms.

• Dividend policy to maintain at least 50% payout of headline earnings per share.