Afrimat (AFT) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue rose 29.9% to R5.330bn and operating profit increased 29.8% to R379.8m; HEPS advanced 92.3% to 101.9 cents.

• Q2 gains followed a difficult, rain-affected Q1; iron ore sales strengthened, aggregate volumes recovered and cement losses were stemmed.

• H2 is expected to improve, with operational performance, cash generation and debt reduction remaining priorities.

Financial highlights

• Revenue was R5.330bn versus R4.10bn; operating profit was R379.8m versus R292.6m.

• Profit for the period increased 78.9% to R173.5m; profit before tax rose 21.0% to R266.0m.

• HEPS was 101.9 cents versus 53.0 cents; EPS was 102.7 cents versus 58.3 cents.

• Cash generated from operations was R357.7m versus R131.4m used; operating cash flow was R134.9m versus an outflow of R272.4m.

• Interim dividend increased to 20.0 cents per share from 10.0 cents; NAV per share was 2,951 cents versus 2,865 cents.

Outlook and guidance

• H2 is expected to be better than H1; cement is expected to remain at breakeven and improve as reliability and throughput rise.

• Full-year international iron ore volumes are projected near prior-year levels, ~17% below the 870,000 tpa allocation due to Saldanha rail logistics constraints.

• Domestic iron ore sales are expected to be slightly lower in H2 following the Newcastle operation closure.

• Nkomati is scheduled for temporary closure on 1 December 2025; reopening in 2026 depends on ferrochrome smelters resuming operations.

• Debt-to-equity target is 25% or below within two years, supported by cash generation and debt reduction.