JSE-listed Reunert on Thursday posted a 5% decline in headline earnings per share (HEPS) from continuing operations from 685c in 2024 to 649c for the year ended September 30.

However, a stronger second half of the year led to a 6% half-year increase in HEPS to 411c for the last six months of 2025, compared with the 389c achieved in the second half of 2024.

“Reunert’s resilient financial performance in 2025 is underpinned by the strong second half, positive cash generation and continued strategic execution across the group. This momentum, together with execution of the group’s key strategic initiatives, enabled Reunert to recover much of the earnings shortfall from the first half of the year,” said Reunert Group CEO Alan Dickson.

During the year under review, group revenue decreased 2% to R13.9-billion.

During the 12 months ended September 30, Reunert’s free cash flow was R1.17-billion, compared with R1.22-billion in 2024, with the company ending the year with a net cash position of R743-million, an increase of 39% year-on-year from 2024’s R536-million.

“Our cash generation remains robust, with free cash flow of R1.2-billion and a stronger net cash position of R743-million. This enables the group to fund the final dividend and continue investing in our strategic growth initiatives and operational requirements,” said Reunert Group CFO Mark Kathan.

“Our balance sheet remains strong, supported by available headroom in our funding facilities of R1.9-billion and continued compliance with all covenants. These fundamentals provide the foundation for delivering long-term value for our shareholders.”

Reunert declared a final dividend a share of 293c for 2025, a 6% increase from 276c in 2024.

“Despite continued headwinds in the South African economy, the group’s businesses retained market share, demonstrated disciplined cost management, sustained strong cash flows and delivered stable operating performances across the three segments,” continued Dickson.

“We also made good progress in the key strategic initiatives of expanding our international footprint and enhancing the strength of the group’s portfolio.”

The Electrical Engineering segment’s revenue decreased by 3% to R7.5-billion, and operating profit declined by 31% to R461-million.

This is owing to a challenging environment brought about by reduced South African gross domestic fixed investment, the change in US import tariffs on South African goods and the adverse product mix and foreign exchange impacts in Zambia.

The circuit breaker business retained South African market share and delivered a robust export performance, particularly into the US, where uplifted volumes support continued future growth.

In South Africa, power cable volumes fell by 9% as infrastructure investment failed to materialise. Strong cost control and lean manufacturing improved efficiencies but could not fully offset lower volumes, the company noted.

The Zambian power cable and copper rod business delivered stable volumes, improved regional sales and maintained a positive operating environment, however, margins were impacted by foreign exchange losses and product mix.

Meanwhile, the ICT segment, amid a constrained local market characterised by extended sales cycles and weak business confidence, maintained stable revenue of R3.9-billion, while operating profit decreased by 9% to R644-million.

The Business Communications cluster delivered a good performance and improved operating profit, while the Total Workspace Provider Cluster (Nashua) produced stable results, although complementary revenues in renewable energy softened owing to reduced loadshedding.

The Rental-based Finance cluster (Quince) performed well, delivering efficiencies that offset the impact of a lower average rental book and reduced interest rates.

The Solutions and Systems Integration cluster (iqbusiness) experienced lower customer spending, prompting a successful restructuring programme completed during the year under review.

Revenue from the Applied Electronics segment decreased by 7% to R2.8-billion owing to a stronger rand and reduced local demand in maintenance services.

However, the quality of earnings improved significantly as segment operating profit increased by 21% to R500-million, driven by improved margins, efficient production and well managed foreign exchange positions on long-term export contracts.

“The Defence cluster delivered an excellent performance, with record results in the radar and fuze businesses. Strong order books, improved margins and sustained international demand supported the cluster’s continued growth trajectory,” Reunert outlined in its financial result statement for the year ended September 30.

“The segment is well positioned for future expansion, underpinned by strategic intellectual property codevelopment projects and deepened market access in the Middle East and Europe.”

In the Renewable Energy cluster, the solar energy business achieved another year of growth, delivering higher earnings before interest, taxes, depreciation and amortisation and strong project margins.

The group increased its owned, in-construction and near-financial close build-own-operate assets to 95 MW, up from 78 MW in 2024.

“We have built meaningful momentum heading into 2026, supported by our progress in growing international income streams, strengthening our ICT offering and expanding our renewable-energy footprint,” Dickson said.

“Our strategy positions the group well for sustainable growth, and we expect solid contributions from our offshore defence and circuit breaker markets, the restructured ICT Segment and the continued expansion of our renewable-energy investments.”

Meanwhile, Dickson is stepping down, through a well-structured and carefully managed process, from his role as CEO on February 28, 2026, and will be succeeded by Anthonie de Beer, who will join the group from February 1.

De Beer brings extensive experience investing in and leading complex and diversified businesses, with a proven record of strategic insight, operational excellence and strong leadership.

While Dickson will formally hand over his CEO responsibilities to De Beer on March 1, he will remain as an executive director until May 31, 2026, to assist in ensuring a smooth handover.