Raubex (RBX) H1 2025 earnings summary

Executive summary

• Revenue rose 29.7% to R10.95 billion for the six months ended 31 August 2024, with strong performances and robust cash generation across all divisions.

• Operating profit increased 34.7% to R846.2 million, with EPS up 48.2% to 286.0 cents and HEPS up 49.8% to 284.3 cents.

• Order book remains solid at R24.5 billion, only marginally down from year-end, supported by increased tender activity and selective contract awards.

• Interim dividend increased by 49.2% to 94 cents per share, marking a significant return to shareholders.

• Celebrated 50th anniversary with share price above R50 and notable project recognitions, including the Beitbridge Border Post Modernization project.

Financial highlights

• Revenue: R10.95 billion (+29.7% YoY); Operating profit: R846.2 million (+34.7% YoY); Operating margin: 7.7%.

• HEPS: 284.3 cents (+49.8% YoY); EPS: 286.0 cents (+48.2% YoY); profit after tax up 34% to R590 million.

• Cash generated from operations surged 111.5% to R1.54 billion; net asset value up 4.7% to R6.92 billion.

• Capital expenditure decreased 24.0% to R757.6 million; borrowings increased 11.8% to R1.92 billion.

• Cash and cash equivalents rose to R2.15 billion (+29.5% from FY2024); interim dividend of 94cps declared.

Outlook and guidance

• Optimistic outlook for FY2025, supported by positive post-election sentiment, robust order book, and strong tender pipeline.

• Materials Handling and Mining expects to pursue strategic partnerships and production efficiencies, though chrome price declines and currency strength may impact 2H2025.

• Construction Materials anticipates a softer 2H2025 due to seasonality but expects strong full-year results.

• Roads and Earthworks and Infrastructure divisions are optimistic, driven by new infrastructure, renewable energy, and housing projects.

• Western Australia operations remain robust with ongoing tender opportunities and market share gains.