Raubex (RBX) H1 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 11.8% to R12.12bn and operating profit grew 2.5% to R618.0m, while operating margin narrowed to 5.1% from 5.6%.

• The order book increased 24.0% to R39.00bn, supporting a positive medium- to long-term outlook.

• Roads’ resilience, improved Infrastructure margins and Australia’s return to profitability offset pressure in mining and Construction Materials.

Financial highlights

• Revenue was R12.124bn, up 11.8%; operating profit was R618.0m, up 2.5%.

• Profit for the period was R385.9m; basic EPS rose 8.8% to 266.9 cents and HEPS increased 4.4% to 254.3 cents.

• Cash generated from operations rose 104.1% to R1.56bn; capital expenditure increased 24.1% to R721.2m.

• The interim dividend increased 8.6% to 88 cents per share, with 3 times dividend cover.

Outlook and guidance

• The R39.00bn secured order book and opportunities across divisions underpin a positive medium- to long-term outlook.

• Roads and Earthworks expects to meet its FY2027 budget; Infrastructure outlook remains favourable, supported by government spending, SANRAL activity and concessionaire maintenance.

• Construction Materials has a positive pipeline outlook, with Industrial Minerals expected to strengthen in 2H FY2027 as smelters resume production.

• Australia’s outlook improved after legacy issues were resolved, operations normalised and new contracts were secured; Bauba remains under pressure.

• The R5.8bn, five-year Vedanta Zinc International contract is expected to contribute from FY2028; Lebombo Border Post work is expected to start in Q1 FY2028.