JSE (JSE) investor relations material

Executive summary

• Operating income rose 14.6% year-on-year to R2.0bn, with EBITDA margin expanding to 43.1% and net profit after tax up 16.9% to R652m; headline EPS increased 18.8% to 816.2c.

• Growth was broad-based across most segments, with strong equity market activity, positive operating leverage, and market availability at 99.99%.

• Strategic focus shifts to FORGE 2031, emphasizing transformation, technology modernization, data monetisation, and a Pan-African digital marketplace.

• Organisational redesign completed to support FORGE 2031, enhancing strategic delivery and operational resilience.

• Robust balance sheet with R2.6bn in cash and bonds, and a share buyback of 1.28% of issued capital executed.

Financial highlights

• Operating income increased 14.6% year-on-year to R2.0bn, while operating expenses rose 11.5% (3.5% excluding once-off and trade-related costs).

• EBITDA margin improved to 43.1%, up one percentage point; EBIT rose 21.4% to R774m.

• Net profit after tax grew 16.9% to R652m; headline EPS up 18.8% to 816.2c.

• Net cash generated from operations was R625m, up 20.6% year-on-year; cash and bonds balance at R2.59bn.

• CapEx surged 307.3% year-on-year to R110.3m, mainly for BDA modernization and infrastructure.

Outlook and guidance

• Operating expense guidance for FY2026 revised to 6%-8% due to once-off costs; underlying cost growth remains within original range.

• CapEx expected between R190m and R230m for the year, with heavier spend in H2.

• Dividend policy unchanged, targeting payout ratio of 67%-100%.

• Value traded expected to normalize in H2 after strong H1.

• Strategic focus on advancing FORGE 2031, technology harmonisation, and non-trading revenue initiatives.