Wilson Bayly Holmes-Ovcon (WBO) H2 2025 earnings summary

Executive summary

• FY2025 was a year of consolidation after strong prior growth; revenue rose 3.5% to R28.493bn and segment operating margin improved to 5.5% from 5.1%.

• Consolidated order book increased 23% to R37.551bn, supported by South African infrastructure awards and UK growth.

• Cash generation and balances strengthened, while delivery capacity and retention of skilled employees remain priorities.

Financial highlights

• Revenue R28.493bn vs R27.526bn; operating profit before non-trading items R1.569bn vs R1.415bn; net profit for the year R1.330bn vs R1.049bn.

• Profit before tax was R1.769bn vs R1.541bn; profit after tax was R1.299bn vs R1.053bn.

• Cash and cash equivalents rose to R4.305bn from R3.660bn; cash generated from operations was R1.936bn vs R1.035bn.

• Earnings per share from continuing operations increased 22% to 2,299 cents; headline EPS rose 11% to 2,278 cents; dividend per share increased 35% to 620 cents.

Outlook and guidance

• Group order book remained elevated at R37.551bn; potential near-term awards of R17bn could materialise in Q4 FY2025, including R6bn renewables and R9bn roads and earthworks.

• Lower interest rates have reduced project finance costs; critical infrastructure spending is expected to support construction activity over the medium term.

• Multi-billion-rand projects remain visible in the pipeline; strong execution and skills retention are required to deliver work on hand.

• UK outlook remains uncertain, with a gloomy economic outlook and projects at risk of withdrawal or cancellation; meaningful South African rail spending is expected two years away.