Metair Investments (MTA) H1 2026 earnings summary

Executive summary

• Delivered stable underlying earnings and operational resilience, with a strategic reset substantially complete and a transition to a stable operating phase.

• Revenue increased 1% year-over-year to R8.5 billion, with EBIT up 1% to R444 million and EBITDA up 8% to R760 million.

• Net debt reduced from R5.05 billion to R4.33 billion, and cash balance increased from R143 million to R620 million.

• AutoZone returned to profitability from May 2026, with cash conversion and operational turnaround prioritized.

• Major restructuring and closure of loss-making businesses completed, with focus now on EBITDA and free cash flow to service debt.

Financial highlights

• Revenue for H1 2026 was R8.5 billion, up 1% year-over-year.

• EBITDA rose 8% to R760 million; EBIT up 1% to R444 million; EBIT margin stable at 5.2%.

• HEPS from continuing operations up 4% to 71cps; EPS turned from a loss of 93cps to a profit of 72cps; HEPS up 11% to 72cps.

• Net debt reduced to R4.33 billion; cash balance up to R620 million.

• ROIC increased to 11.2% from 11.1% at FY 2025.

Outlook and guidance

• Focus on profitability, debt reduction, and growth following strategic reset; government decisions pivotal for sector growth.

• Toyota volumes expected to increase, Ford volumes to stabilize; local OEM market stabilizing.

• AutoZone turnaround remains a near-term priority, with targeted break-even for the full year.

• Diversification into the African aftermarket and leveraging scale and distribution are key growth strategies.

• CapEx for FY 2026 projected at R733 million, moderating to R400–450 million per annum from FY 2027.