Explosives and chemicals group AECI expects its headline earnings per share (HEPS) for the year ended December 31, 2025, to be between 43% and 58% higher year-on-year, which reflects higher underlying profitability and excludes the impact of impairments recognised in the period.

AECI anticipates its HEPS for the year to be between R10.22 and R11.31, compared with HEPS of R7.16 reported for the prior year.

The group’s earnings per share (EPS) for all operations will increase by between 219% and 232% year-on-year to between R3.19 and R3.51, compared with a loss a share of R2.68 in the prior year.

EPS from continuing operations, in turn, will increase by between 26% and 40% to between R3.32 and R3.68.

AECI’s discontinued operations are expected to report a basic loss a share of between 13c and 15c, compared with a basic loss a share of R5.31 in the prior year.

The company says its earnings will be impacted on by the recognition of impairments totalling R820-million, which relate to disposals within the Managed Businesses segment and an impairment assessment at the Schirm Germany operation.

The group nonetheless expects a more than 10% year-on-year increase in earnings before interest, taxes, depreciation and amortisation despite a year-on-year decline in revenue, owing to an improved performance by the AECI Mining segment.

AECI Mining is expected to past an increase in earnings of more than 15% in the year under review despite lower sales volumes in mining explosives and mining chemicals, on the back of disciplined pricing and improved margin management.

The AECI Chemicals segment is expected to have lower earnings owing to bad debts; however, AECI was able to recover R49-million out of R113-million of bad debts for the year under review.

Looking ahead, the majority of AECI’s disposals are now completed which will improve on the group’s quality of earnings, its portfolio and the strength of the balance sheet.

The group’s net debt decreased to R460-million in the year under review, compared with net debt of R3.7-billion in the prior year.

AECI will publish its full results for the year under review on or about February 25.