Southern Sun (SSU) H2 2026 earnings summary

Executive summary

• Achieved high single-digit revenue growth and double-digit EBITDA/Ebitdar growth, with adjusted earnings per share up 19% and dividends per share increased 20%.

• Second half performance was notably strong, contributing two-thirds of annual cash flow.

• Increased dividend by 20% and executed significant share buybacks, reducing share count by 37–40 million.

• Maintained a stable portfolio of 95 hotels and nearly 17,000 rooms, with ongoing refurbishments and upgrades.

• Ended the year in a net cash position, fully de-geared, with strong free cash flow generation.

Financial highlights

• Revenue/income up 9% year-over-year to R7.2bn; EBITDA/Ebitdar up 12% to R2.4bn; adjusted earnings up just under 20%.

• Free cash flow exceeded R900m after R600m in maintenance capex; profit for the year was R1.2bn.

• CapEx increased from R450m to R600m, with major refurbishments in Seychelles and other key properties.

• Net cash position of R86m at year-end, compared to R266m debt last year.

• Dividend payout of R344m and share buybacks totaling R359m.

Outlook and guidance

• Maintenance CapEx expected to remain at R600m for the next two years, then drop to R500m long-term.

• Major expansion projects (Cape Town JV, Beverly Hills, Oceans) could add R2–3bn in CapEx over several years.

• Free cash flow generation projected at R1bn per year, supporting both expansion and shareholder returns.

• Offshore segment expected to rebound with full-year Seychelles trading, targeting over R100m EBITDA.

• Expansion opportunities pursued in Western Cape and KwaZulu-Natal, including joint ventures and redevelopment projects.