Metair Investments (MTA) H2 2025 earnings summary

Executive summary

• Revenue increased 57% year-over-year to ZAR 17.9 billion, driven by Hesto consolidation, full-year AutoZone inclusion, and OEM growth.

• EBITDA rose 99% to ZAR 1.7 billion and EBIT rose 99% to ZAR 1.1 billion, reflecting margin improvements from restructuring and excluding the Rombat fine and capital items.

• Group net debt increased to ZAR 3.9 billion from ZAR 2.7 billion, reflecting higher leverage after restructuring and acquisitions.

• Strategic focus on growing aftermarket parts and retail to 40% of revenue, with new management, operational realignment, and divestment of non-core businesses.

• Rombat received a EUR 20.2 million EU fine for historic conduct, fully provided for in accounts, with an appeal lodged.

Financial highlights

• Revenue: ZAR 17.9 billion, up 57% year-over-year; EBITDA: ZAR 1.7 billion, up 99%; EBIT: ZAR 1.1 billion, up 99%.

• HEPS from continuing operations before exceptional items: ZAR 1.91/share, up from ZAR 1.05/share.

• ROIC increased to 11.1% from 7.2% year-over-year.

• Net asset value per share declined to ZAR 11.35 from ZAR 13.88.

• Group net debt rose to ZAR 3.9 billion; gross borrowings at ZAR 5.1 billion.

Outlook and guidance

• Focus on boosting aftermarket parts and retail, targeting 40% of revenue and African expansion.

• CapEx expected to exceed ZAR 800 million in FY 2026, then normalize to ZAR 400–450 million annually from 2027.

• Confident in meeting debt covenants and maintaining strong lender relationships.

• Ongoing efforts to improve margins, optimize procurement, and enhance engineering efficiency.

• AutoZone targeted to reach 1–2% margins in 2026, aiming for 3% in the medium term.