Altron Limited (AEL) H2 2026 earnings summary

Executive summary

• Achieved strong financial performance in FY 2026, with operating profit up 34% CAGR over three years and EBITDA reaching R2.0bn, despite challenging market conditions.

• Platform businesses drove over 90% of group profitability and revenue, with a streamlined, multi-platform business model.

• ROIC improved from 7% to 23% over three years, and ordinary dividends per share increased by 51%.

• Paid both an ordinary and special dividend, returning nearly ZAR 1 billion to shareholders in FY 2026; ungeared balance sheet maintained.

• Completed a three-year transformative growth phase, focusing on high-quality, annuity-based earnings.

Financial highlights

• FY26 revenue from continuing operations grew 1% to R9.6bn, driven by 12% growth in the platform segment.

• EBITDA increased by 10% to R2.0bn, operating profit by 25% to R1.2bn, headline EPS by 34% to 239cps, and EPS by 35% to 210cps year-over-year.

• Cash generated from operations rose 30% to nearly ZAR 2 billion; gross margin expanded to 42%.

• Ordinary dividend up 51% (excluding special dividend); total payout for the year equals 100% of headline EPS.

• Net finance expense reduced by 48% to R45m; net profit after tax up 32%.

Outlook and guidance

• Multi-platform ecosystem with high annuity revenue and capital-light architecture positions for sustainable growth.

• Platform segment targets operating profit margin above 26% medium-term; IT services target 7%.

• Continued focus on investing in platform businesses and maintaining a 50% dividend payout policy.

• Expect IT Services to remain constrained but positioned for margin improvement; platform segment to drive future growth.

• Tax rate normalization expected in FY 2027, impacting headline earnings.