Grindrod (GND) H2 2025 earnings summary

Executive summary

• Achieved record operational and financial performance in 2025, with significant growth in core earnings and dividends, supported by strategic execution and operational excellence despite geopolitical and trade policy volatility.

• Completed ZAR 1.4 billion acquisition of TCM (Matola Terminal), exited non-strategic marine fuel and property assets, securing over ZAR 900 million in cash.

• Delivered record volumes at Maputo (15.2m tonnes, +6%) and Matola (9.9m tonnes, +22%) terminals, with significant operational efficiencies and improved safety metrics.

• Safety performance improved, achieving zero fatalities and a record low lost time injury frequency rate of 0.16.

Financial highlights

• Core EBITDA rose over 100% to R2.3 billion, with core revenue up 1% and core EBITDA up 13% year-over-year, driven by Matola terminal performance.

• Group EBITDA margin improved to 30% (+11% YoY); normalized port and terminals margin at 44%-45% (up from 36% in H1).

• Net profit attributable to ordinary shareholders at ZAR 2.1 billion, up 559% YoY; core headline earnings at ZAR 1.2 billion, up 17% YoY; headline earnings per share grew to 176.5 cents.

• Ordinary and special dividends totaled ZAR 862 million, with interim and special ordinary dividend declared at 68.2 cents per share, up over 100%.

• Cash from operations at ZAR 2 billion; year-end cash balance ZAR 3.9 billion; net cash position of ZAR 699 million.

Outlook and guidance

• Strategic focus on disciplined growth execution, with infrastructure projects underway including TCM expansion (to 12m tonnes by 2027), Maputo port dredging, and Richards Bay container facility (commissioning 2028).

• Ongoing negotiations for rail open access and procurement of 50 wagons in 2025.

• Participation in Richards Bay Dry Bulk Terminal RFQ, with potential for significant volume and capacity expansion.

• Port and terminals EBITDA margin expected to remain within 35%-45%; logistics segment margin targeted at 25%.

• Focus on balanced capital allocation, including sustainable dividends and opportunistic share buy-backs.