Reunert (RLO) H2 2025 earnings summary

Executive summary

• Achieved strong second half performance in FY25, offsetting a challenging first half and tough macroeconomic conditions, with headline earnings per share (HEPS) up 5% year-over-year and a 5% dividend increase.

• International sales reached R5bn, with a 17% four-year CAGR, and non-South African revenues now exceed 40% in Electrical Engineering, supporting portfolio optimization and resilience.

• Strategic focus on international market expansion, portfolio efficiency through key mergers, and the sale of BlueNova Energy.

• Leadership transition planned, with continuity in strategy and executive involvement assured.

Financial highlights

• Revenue from total operations declined 3% to R13,956m, with operating profit down 10% to R1,375m and profit for the year down 12% to R913m.

• Headline earnings per share from continuing operations dropped 5% to 649 cents; basic EPS from continuing operations fell 5% to 654 cents.

• Free cash flow was R1,170m, up 4% year-over-year, converting profit to free cash flow at 128%, and net cash position improved to R743m, a 39% increase.

• Total dividend for the year increased by 5% to 383 cents per share, with a final dividend up 6%.

• NAV per share rose 1% to R44.93.

Outlook and guidance

• Growth expected in FY26 driven by international markets in Defence and Electrical Engineering, a refocused ICT segment, and expansion in Renewable Energy.

• Expectation of steady improvement in the South African economy as infrastructure investments and reforms take effect, though short-term investment remains pressured.

• Defense cluster expected to maintain double-digit growth over the next three years, supported by robust global demand.

• ICT segment restructured for sustainable growth; renewable energy investments set to expand asset ownership and trading footprint.