JSE-listed automotive components supplier Metair, in a trading statement, says it expects group revenue for the year ended December 31, 2025, to be 53% to 58% higher than the R11.37-billion posted for the 2024 financial year.

The growth in revenue was driven by the inclusion of wiring harness company Hesto as a subsidiary with effect from April 1, 2025, and aftermarket vehicle spares company AutoZone for the full year.

Further, earnings before interest and taxation (Ebit) are expected to be between R1.07-billion and R1.11-billion, up by between 96% and 103%, compared with the prior year’s Ebit of R546-million.

The Ebit margin is expected to improve to between 6% and 6.2%, up from 4.8% in the 2024 financial year.

Metair expects to post a narrower headline loss a share of between 63c and 70c for the year, compared with the headline loss a share of 203c in the 2024 financial year. It expects to post a loss per share of between 228c and 235c, down from the loss a share of R21.46 in the 2024 financial year.

The loss expected in 2025 is primarily owing to the one-off net capital loss relating to the accounting for Hesto as a subsidiary from April 1, 2025, and the provision of the Rombat fine of R413-million.

If the Rombat fine were excluded, headline earnings a share would be between 185c and 195c and earnings a share between 28c and 35c.

The significant one-off net capital loss of about R300-million in Hesto, triggered by its first time consolidation, and the provision for the Rombat fine of R413-million, counteracted the positive developments during the year.

While the South African new-vehicle market delivered a solid performance in 2025, this was heavily weighted towards imported vehicles, which increased by a significant 30.4%, Metair points out.

South African original-equipment manufacturer (OEM) passenger and light commercial vehicle production increased by only 1.48% to 602 302 in 2025.

Metair implemented a capital restructuring plan in the first half of 2025, which provides it with a more sustainable debt structure and more appropriate repayment terms.

Management continues to monitor debt levels and liquidity closely, with reducing debt in the medium term remaining a key priority.

“Metair is pleased with the progress over the past 12 months. The group's restructured debt package has established a sustainable repayment profile going forward.

“Margins have improved through our restructuring and optimisation efforts, and, together with a recovery in volumes, have increased profitability. Hesto’s enhanced performance is now well-entrenched, and ongoing initiatives to stabilise AutoZone are bearing fruit,” says Metair CEO Paul O’Flaherty.

During 2025, Metair focused on entrenching continuous operational improvement and efficient project management, as well as flexing production and costs to increase resilience, enhance margins, and improve returns on invested capital.

Specific focus areas during the year included manufacturing excellence in supplying to OEM customers and bedding down AutoZone to facilitate planned growth in the aftermarket segment.

To increase agility, Metair also restructured, rightsized and closed certain operations, thereby allowing it to adapt dynamically to market shifts and volume fluctuations.

These efforts resulted in the notable improvement in the overall Ebit margin, he says.

Additionally, the group's diversification strategy of growing the aftermarket sector is ongoing. Bedding down AutoZone as the business emerges from business rescue is tracking about six months behind plan, but Metair remains confident in the turnaround.

Further, the continued improvement initiatives at Hesto Harnesses resulted in higher revenue and improved operating profit.

The company also established the Metair Aftermarket Parts and Retail division at the end of the 2025 financial year, which consists of five distinct and separate verticals, namely AutoZone, MOVE, ATE, First Battery Retail, and QSV.

This approach enhances strategic clarity, operational efficiency and financial transparency, thereby enabling Metair to better serve distinct markets and customer segments, while maintaining brand and channel independence.

“Metair is pleased with the progress achieved during the period in its core operational results. Margins have improved through our restructuring and optimisation efforts, which, together with a recovery in volumes, have increased profitability.

“Hesto’s enhanced performance is now well-entrenched, and initiatives to stabilise AutoZone are bearing fruit,” says O’Flaherty.