Reunert (RLO) H2 2025 earnings summary

Executive summary

• Achieved strong second half performance in FY25, offsetting a challenging first half and maintaining growth momentum.

• Headline earnings per share for FY25 reached 649 cents, up 5% year-over-year, with a total dividend increase of 5% to 383 cents per share.

• Navigated challenging macroeconomic conditions, especially in South Africa, with resilient performance and strategic focus on growing non-South African revenues, which now comprise 35% of total revenue.

• International sales reached R5bn, with a 17% four-year CAGR, and non-South African revenues now exceed 40% in Electrical Engineering.

• Portfolio efficiency improved through the sale of BlueNova Energy and mergers in key clusters, enhancing resilience and growth.

Financial highlights

• Revenue from total operations declined 3% to R13,956m; operating profit fell 10% to R1,375m; profit for the year decreased 12% to R913m.

• Headline earnings per share from continuing operations dropped 5% to 649 cents; basic EPS from continuing operations fell 5% to 654 cents.

• Free cash flow was R1,170m, up 4% year-over-year, with net cash at R743m, a 39% increase.

• NAV per share rose 1% to R44.93.

• Total loss from BlueNova Energy disposal was ZAR 142 million, impacting basic and headline EPS.

Outlook and guidance

• Growth expected in FY26 driven by international markets in Defence and Electrical Engineering, a refocused ICT segment, and expansion in Renewable Energy.

• South African economic improvement anticipated, with continued investment in energy, rail, and ports, though short-term infrastructure investment remains pressured.

• Defense cluster expected to maintain double-digit growth over the next three years, supported by robust global demand.

• Circuit breaker volumes into the U.S. expected to grow, with margin pressures from tariffs unlikely to worsen.