Altron Limited (AEL) H2 2025 earnings summary

Executive summary

• Achieved strong profitability growth in a constrained environment, with EBITDA up 27% to R1.8 billion and operating profit up 50% to R972 million from continuing operations, driven by disciplined strategy and focus on high-growth digital, fintech, and healthtech segments.

• Headline earnings per share (HEPS) increased 73% to 178 cents, and earnings per share (EPS) rose 64% to 156 cents.

• Cash generated from operations increased 23% to R1.9 billion, supporting a final dividend of 50 cents per share, up 52% year-over-year.

• Group results, including discontinued operations, showed EBITDA up 69% and operating profit more than tripled.

• Strategic investments in AI, data analytics, and customer engagement tools, and recognition as a top employer and JSE performer.

Financial highlights

• Revenue from continuing operations was flat at R9.6 billion, with EBITDA margin improving to 19% and operating profit margin to 10.1%.

• Platform businesses delivered 12% revenue growth, high annuity revenue, and margin expansion.

• Annuity revenue base grew 10% to over R6 billion, now 63% of total revenue.

• Net profit after tax from continuing operations up 59% to R616 million; net cash at year-end R993 million, up 58%.

• Interim and final dividends totaled 90 cents per share, a 55% increase year-over-year.

Outlook and guidance

• Targeting at least 19% operating profit margin for Platforms and 7% for IT Services in the medium term.

• Expecting a constrained operating environment and some uncertainty impacting growth into FY2026.

• Maintaining dividend policy of at least 50% of headline earnings from continuing operations.

• Focus remains on high-margin annuity revenue growth, operating profit expansion, and shareholder returns.