Reunert (RLO) H1 2026 earnings summary

Executive summary

• Revenue grew 1% year-over-year to R6,309 million, but operating profit declined 23% to R453 million due to margin pressures, weak cables business, and non-cash share-based payment charges.

• Headline EPS declined 22% to 185cps; basic EPS from continuing operations fell 24% to 185cps; NAV per share increased 5% to R44.22.

• Applied Electronics delivered strong profit growth and momentum, while ICT remained resilient and Electrical Engineering faced significant headwinds from weak infrastructure demand and commodity price spikes.

• Leadership transition completed, with a new CEO appointed and a focus on sharper growth options, disciplined capital allocation, and strategic continuity.

• Two value-accretive deals concluded, including the acquisition of Silversoft and a strategic JV in Europe for electronic fuses.

Financial highlights

• Group revenue increased 1% year-over-year to R6,309 million; Electrical Engineering and Applied Electronics up 1.5% and 9% respectively, ICT down 4%.

• Operating profit declined by 23% to R453 million, mainly due to weak cables business and non-trading share-based payment charges.

• HEPS down 22% to 185cps; EPS down 24% to 185cps.

• Net cash position improved to R383 million from R81 million in FY25, despite a ZAR 468 million final dividend payment; positive free cash flow of R214 million.

• Capital expenditure of R69 million focused on ICT and Applied Electronics expansion.

Outlook and guidance

• Second half expected to improve, with healthy order books in circuit breakers, Defence Cluster, and applied electronics; ICT segment projected to accelerate growth leveraging synergies and recurring revenue.

• Transmission development plan in South Africa and renegotiated Zambian contracts expected to support recovery.

• Macro environment remains subdued, with ongoing volatility in FX, inflation, commodity prices, and global geopolitical tensions.

• Strategic refresh underway to focus on execution, cash management, and value creation; Capital Markets Day in September will provide further updates.