Raubex (RBX) H1 2025 earnings summary

Executive summary

• Revenue rose 29.7% year-over-year to R10.95 billion, with strong operational and financial performance across all divisions and robust cash generation from operations, up 111.5% to R1.54 billion.

• Operating profit increased 34.7% to R846.2 million, with operating margin improving to 7.7% and EPS up 48.2% to 286.0 cents; HEPS up 49.8% to 284.3 cents.

• The order book stands at R24.5 billion, slightly down 4.1%, but remains robust and diversified, supporting a positive outlook.

• Interim dividend increased by 49.2% to 94 cents per share, marking a significant return to shareholders.

• Positive market sentiment post-elections, infrastructure reforms, and increased tender activity contributed to results.

Financial highlights

• Revenue increased 29.7% year-over-year to R10.95 billion; operating profit up 34.7% to R846.2 million; operating margin at 7.7%.

• Headline earnings per share rose to 284.3 cents (+49.8%); profit after tax up 34% to R590 million.

• Cash generated from operations up 111.5% to R1.54 billion; net asset value up 4.7% to R6.92 billion.

• Capital expenditure decreased 24.0% to R757.6 million; cash and cash equivalents rose to R2.15 billion.

• Interim dividend of 94 cents per share declared, up 49.2% year-over-year.

Outlook and guidance

• Optimistic outlook for FY2025, supported by post-election sentiment, infrastructure reforms, and a strong, diversified order book at R24.5 billion.

• Materials Handling and Mining expects improved production efficiencies but faces margin pressure from chrome price declines and currency fluctuations.

• Construction Materials anticipates a softer second half due to seasonality but expects strong results overall.

• Roads and Earthworks and Infrastructure divisions are optimistic, driven by new projects and government commitments.

• CapEx expected to decrease below R1 billion in the next year.