PR Newswire
LONDON, United Kingdom, February 25
AECI LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1924/002590/06
Tax Reference Number: 9000008608
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
Reviewed condensed consolidated financial results and cash dividend declaration
for the year ended 31december 2025
· Safety performance: TRIR improvement of 35% to 0.20 (31December 2024: 0.31)
· Revenue from continuing operations down 4% to R32,183 million
· EBITDA1 from continuing operations up 12% to R3,412 million
· Profit from continuing operations down 1% to R1,530 million
· EPS from continuing operations up 36% to 357 cents per share (cps)
· HEPS up 53% to 1,098cps
· Final dividend of 128cps (31December 2024: 219cps); total dividend of 228cps
(31 December 2024: 219cps)
· Net debt of R465 million (31December 2024: R3,738 million)
1 Earnings before interest, taxation, depreciation and amortisation calculated
as profit from operations and equity-accounted investees plus depreciation,
amortisation and impairments. EBITDA is a non-IFRS measure.
The Group delivered strong results during the year, with a marked improvement in
both operational and financial performance. This was driven by disciplined
pricing, cost and margin management, supported by a focused strategic effort to
strengthen the Company’s core fundamentals.
Key achievements include:
· A record EBITDA of R2.7 billion in AECI Mining. EBITDA margins improved to
15%.
· Strong free cash flow conversion of 133% in AECI Chemicals.
· R2.2 billion realised from the disposal of non-core assets.
· A reduction in the Group’s net debt from R3.7 billion to R0.5 billion.
Statement from the Interim Group CEO:
«I am encouraged by the outstanding progress being made across the Group as we
strengthen our position for long-term success.
I am especially proud of AECI Mining’s excellent performance this year, with a
record-high EBITDA and the excellent free cash flow generation achieved at AECI
Chemicals. These achievements reflect the passion and commitment of our people
and leadership.
The momentum we are building and opportunities ahead give me confidence in our
collective ability to realise AECI’s full potential.»
Safety
The Group continued to improve its safety performance and culture. The 12-month
rolling Total Recordable Injury Rate (TRIR) improved to 0.20, from 0.31 at
31December 2025. AECI places the highest priority on protecting the health and
safety of all employees, underpinned by accountable leadership, active employee
engagement, and a rigorous, risk-based approach to Environment, Health and
Safety management.
The Group had no fatalities during the year.
Financial review
The Group delivered solid results, with earnings per share from continuing
operations increasing by over 100% compared to 2024. Thisgrowth was primarily
driven by improved EBITDA, mainly from AECI Mining and lower net finance costs
supported by decreased debt levels.
The Group’s headline earnings per share increased by 53%, reflecting higher
underlying profitability and excludes the impact of impairments recognised in
determining EPS from continuing operations.
The discontinued operations recorded a loss for the year of R15 million,
compared with a R560 million loss recognised in the prior year. The Much Asphalt
disposal was treated as a discontinued operation.
Cash and cash equivalents increased by 65% to R3,934 million and net debt
(including lease liabilities) decreased to R465 million (2024: R3,738 million),
resulting in a gearing of 4% (2024: 31%). This was significantly lower than the
guided range of 20% – 40%. The Group’s net debt to EBITDA, as defined in
covenant agreements, improved to 0.1 times (2024: 1.2 times), remaining well
below the covenant maximum threshold of 2.5 times.
AECI Mining
The segment delivered EBITDA of R2,722 million (2024: R2,284 million), which
represents the highest in its history, notwithstanding revenue declining to
R17,622 million (2024: R19,108 million). The increase in EBITDA was mainly
achieved through disciplined pricing and structural margin improvement.
The EBITDA margin increased to 15% for the year (2024: 12%), supported by
segment-wide focus on cost-efficiency initiatives, coupled with structural
improvements that linked sourcing costs to contract pricing and a favourable
product mix in the Asia-Pacific region. The South African explosives business
delivered a notable improvement following the intentional exit from poor
performing contracts, which were successfully replaced with new opportunities
that positively impacted margins.
AECI Chemicals
The segment’s revenue for the year increased to R10,306 million (2024: R9,862
million). EBITDA decreased to R924 million (2024: R972 million), mainly due to
pricing pressures coupled with the recognition of a net R64 million in expected
credit losses. Excellent free cash flow generation of 133% was achieved. The
segment generated free cash flow of R1,233 million (2024: R917 million), an
improvement of 34%.
Closing remarks
The Group remains firmly committed to delivering long-term value for
stakeholders. Looking ahead, the Company will further continue to focus on its
strategic fundamentals by leveraging core competencies and operational
expertise.
Dividend
Declaration of final ordinary cash dividend No. 183
The Company’s board of directors is pleased to announce that it has resolved to
declare a gross final cash dividend of 128 cents per ordinary share in respect
of the year ended 31 December 2025. The dividend is payable on Tuesday, 7 April
2026 to holders of ordinary shares recorded in the register of the Company at
the close of business on the record date, being Thursday, 2 April 2026.
The last day to trade «cum» dividend will be Monday, 30 March 2026 and shares
will commence trading «ex» dividend as from the commencement of trade on
Tuesday, 31 March 2026.
A South African dividend withholding tax of 20% will be applicable to all
shareholders who are not either exempt or entitled to a reduction of the
withholding tax rate in terms of a relevant Double Taxation Agreement, resulting
in a net final cash dividend of 102.4 cents per ordinary share payable to those
shareholders who are not eligible for exemption or reduction. Application forms
for exemption or reduction may be obtained from the Transfer Secretaries and
must be returned to them on or before Thursday, 2 April 2026.
The issued share capital of the Company at the declaration date is 105 517 780
listed ordinary shares, and 3 000 000 listed cumulative preference shares. The
dividend has been declared from the retained earnings of the Company.
Any change of address or dividend instruction must be received on or before
Monday, 30 March 2026.
Ordinary shares may not be dematerialised or rematerialised between Tuesday, 31
March 2026 and Thursday, 2 April 2026, both days inclusive.
Availability of the reviewed condensed consolidated financial results and review
report for the year ended 31December 2025
This results announcement is the responsibility of the Board. Shareholders and
noteholders are advised that this results announcement is only a summary of the
information contained in the full announcement and does not contain complete
details. It has not been audited or reviewed by the Company’s external auditors.
Any investment decisions by investors and/or shareholders should be based on a
consideration of the full announcement. The full announcement has been reviewed
by the Company’s auditors, Deloitte & Touche, who have expressed an unmodified
review conclusion.
As required in terms of paragraph 4.13(e) of the JSE Listings Requirements
(Listings Requirements), the Board hereby confirm that the reviewed condensed
consolidated financial results for the year ended 31 December 2025, have been
prepared in compliance with the Listings Requirements.
The reviewed condensed consolidated financial results for the year ended 31
December 2025 are available through the JSE cloud link at:
https://senspdf.jse.co.za/documents/202 (https://senspdf.jse.co.za/documents/2026
/JSE/ISSE/AFE/ReviewFY25.pdf)6 (https://senspdf.jse.co.za/documents/2026/JSE/ISSE
/AFE/ReviewFY25.pdf)/JSE/ISSE/AFE/ (https://senspdf.jse.co.za/documents/2026/JSE/
ISSE/AFE/ReviewFY25.pdf)ReviewFY (https://senspdf.jse.co.za/documents/2026/JSE/IS
SE/AFE/ReviewFY25.pdf)25.pdf (https://senspdf.jse.co.za/documents/2026/JSE/ISSE/A
FE/ReviewFY25.pdf) (https://senspdf.jse.co.za/documents/2026/JSE/ISSE/AFE/ReviewF
Y25.pdf)and on the Company’s website at:
https:// (https://investor.aeciworld.com/results-reports
-presentations.php)investor.aeciworld.com/results-reports-presentations.php.
Any reference to future financial performance included in this announcement has
not been audited or reported on by the Company’s external auditors.
Directors:
PG Sibiya (Chairman), I Kramer (Group CFO), ST Coetzer1, SA Dawson2, FFT De
Buck, WHDissinger3, P Mishic O’Brien4, AM Roets, N Moholi, J Ndlovu, B Mawasha
1Canadian 2 Australian 3 German 4 American
Investor Relations: I Lepere
Group Company Secretary: C Singh
Board sign-off date: 24 February 2026
Results released on: 25 February 2026
Equity Sponsor: One Capital
Debt Sponsor: Questco Proprietary Limited
Registered office
First floor, AECI Place, 24 The Woodlands, Woodlands Drive, Woodmead, Sandton
Share transfer secretaries
Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, 2196
and
Computershare Investor Services PLC, PO Box 82, The Pavilions,
Bridgwater Road, Bristol BS 99 7NH, England
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