Calgro M3 (CGR) H2 2025 earnings summary

Executive summary

• Revenue declined 32–32.7% year-over-year due to a deliberate construction slowdown ahead of elections and a focus on infrastructure, while combined revenue including joint ventures was down 11–11.5%.

• Record gross profit margins were achieved by unlocking historic land value and focusing on private sector projects, with Memorial Parks segment delivering 50% gross margin and covering group overheads for the first time.

• Net asset value increased from infrastructure investments and property acquisitions, with NAV per share at R13.27.

• Maintained Level 1 B-BBEE accreditation and continued investment in infrastructure and social initiatives.

Financial highlights

• Revenue decreased to R868.9m, with combined revenue (including JVs) at R1.23bn; gross profit margin improved to 29.4%.

• Cash generated from operations decreased from ZAR 149 million to ZAR 107 million, and net cash from operating activities was R34.2m.

• Finance costs rose from ZAR 111 million to ZAR 134 million due to higher borrowings.

• Profit after tax decreased 14% to ZAR 166 million; EPS at 188.95c, HEPS at 171.36c.

• Cash and cash equivalents at year-end were ZAR 154–154.7 million, with a ZAR 100 million undrawn overdraft.

Outlook and guidance

• Construction activity to ramp up, focusing on reducing completed stock and increasing bulk sales, with a revenue pipeline of R29bn in residential and R2.55bn in Memorial Parks.

• First handover of units at Bank & Felt expected in the second half of 2027.

• Diversification across projects and provinces to continue, with a strong pipeline and focus on sustainable growth.

• Memorial Parks segment targeted to exceed 10% of group contribution.

• Anticipates increased demand due to lower interest rates and improved borrowing conditions.