Better second half rebuilds Raubex

JSE-listed construction group Raubex has rebounded from what could have been shaky ground to deliver a better set of results for the year ended 28 February 2026.

The company recovered in the second half of its financial year, producing what can only be described as a “resilient performance” after a 14% decrease in headline earnings per share (Heps) and a 29% drop in operating profit in the six months to August 2025.

In its full-year results for the period ended 28 February 2026, released in a Sens announcement on Monday, revenue increased by 4.6% to R22 billion, underpinned by solid performances across most divisions.

Read: Raubex interim earnings down 14%, cuts dividend [Nov 2025]

A marked improvement in Bauba Resources’ second?half performance, together with strong contributions from the roads and earthworks and infrastructure divisions, were key drivers of this growth.

Operating profit rose by 11.6% to R1.74 billion (2025: R1.56 billion), with the group’s operating margin improving to 7.9% due to the strong recovery in the materials handling and mining division.

Full-year earnings per share increased by 1.4% to 610.2 cents and Heps increased by 1.9% to 611.3 cents.

Performance by segments

• Revenue for the materials handling and mining division declined by 3.2% to R4.1?billion. Despite the top-line contraction, operating profit increased sharply to R444.9?million, lifting the operating margin to 10.8%. The company says this significant improvement was driven primarily by a strong turnaround in Bauba Resources’ mining operations, which materially enhanced the division’s overall performance.
• Revenue for the construction materials division increased 8% to R3.5 billion, while operating profit decreased by 13.4% to R312.5 million. The operating profit margin also fell to 8.9%. The division’s performance weakened primarily due to adverse weather conditions during the first two months of the reporting period, which reduced sales volumes in the aggregates and bituminous businesses. In addition, the industrial minerals segment was significantly affected by ongoing uncertainty surrounding the future of ferrochrome smelters in South Africa, further weighing on overall performance.
• Revenue in the roads and earthworks division increased by 4.9% to R7.1 billion. Operating profit rose by 4.3% to R612.7 million, while the operating profit margin remained stable at 8.6%, again surpassing our target range of 6% to 7%. These increases were primarily driven by strong project execution, the commencement of large new projects and higher margins, particularly on the Senqu Bridge project, which was successfully completed during the financial year under review.
• Revenue for the infrastructure division increased by an impressive 30.2% to R4.3 billion, with operating profit increasing by 42.2% to R426.9 million. The performance was mainly attributable to new contracts secured in South Africs. The operating profit margin strengthened to 9.8%.
• Revenue in the Australia division decreased by 14.4% to R2.9 billion and operating profit declined to an operating loss of R60.4 million. The operating margin decreased to a loss of 2.1%. The most significant setback arose from Raubex Construction Australia’s largest project for a major mining client. The contract was issued a deed of settlement at the end of December 2025, and the financial impact amounted to a loss of R177 million.

CEO Felicia Msiza said the company’s “high?quality order book” bodes well for the future. The group’s order book increased by 11.6% to R31.5 billion.

“Our diversification strategy remains a defining pillar of the group’s success, having strengthened our position across multiple sectors over the past five decades.

“By broadening our operational footprint and building a resilient, future?focused business model, we have unlocked sustained growth opportunities.

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“This solid foundation positions Raubex to capture emerging opportunities through disciplined organic growth and strategic acquisitions, as we advance our ambition to become a leading construction and infrastructure organisation focused on sustainable growth, resilience and long-term value creation for all stakeholders.”

Total dividend per share increased by 2% to 202 cents.

Raubex shares traded higher on the day following the release of the results, peaking at R52.85 at 11am.

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