Raubex Group expects its full-year headline earnings to be as much as 25% higher after three of its four divisions reported improved earnings in the second half.
The group expects to report headline earnings per share (HEPS) of between 547.7c and 595.4c for the year ended February, up 15%- 25%.
Earnings per share (EPS) are expected to be 25%-35% higher than a year ago, the group said in a statement on Monday.
Raubex said its diversification strategy played a pivotal role in driving its performance throughout the year.
The roads and earthworks division reported an increase in operating profit due to the effective execution of its project pipeline. The major Sanral projects, particularly the upgrade of the KwaZulu-Natal corridor, are operating at full capacity and performing excellently, the group said.
The execution of the group’s various concession contracts as well as the construction of the Senqu River Bridge project in Lesotho were progressing well and all the contracts were on schedule, Raubex said.
Since November 2024, the division has secured R3.04bn worth of additional work and was awaiting the award of major Sanral projects, the group said.
The concessionaires — N3TC, Bakwena and TRAC — are making good progress with the awarding of tenders with the group managing to secure a portion of these awards during the latter part of the year.
The construction materials division’s improved performance for the year is largely due to increased volumes across most of its operations. The performance of the restructured asphalt business exceeded expectations and operations were running efficiently and at a lower cost base, Raubex said.
The supply of asphalt to the N3 and N2 projects was running smoothly. Asphalt volumes exceeded 1-million tonnes for the first time since 2018.
The bitumen operations also reported a strong performance, with volumes increasing during the financial year.
Though experiencing a slow start to the 2025 financial year, the commercial quarry operations in SA have started performing better, driven by the more positive market sentiment experienced after the elections.
“The encouraging developments at Transnet have also positively affected quarry volumes, specifically the ballast stone sold at the Kimberley and Petra quarries,” the group said. The Butterworth quarry in the Eastern Cape and the quarry operations in Botswana continued to perform “exceptionally well”.
The infrastructure division's strategy to concentrate on privately owned renewable energy projects has begun to yield positive results. The R2.4bn private wind farm project near Murraysburg in the Western Cape and the group’s R500m wind tower manufacturing project near Jeffrey’s Bay in the Eastern Cape both contributed positively to the division’s results for the year.
The affordable housing projects continue to develop well as the SA property market is being stimulated by the interest rate cuts.
The design and build of the mechanical and electrical works for the upgrade and expansion of the Potsdam Wastewater Treatment Plant is ongoing and the project is on schedule.
Operations in Western Australia continued their strong performance in the second half and will contribute around 19% of the group’s operating profit.
Since November 2024, the division has successfully secured contracts totalling R2.88bn, R2.07bn in SA and R812.2m in Australia.
Included in this total is the recent award for the repair and upgrade of the parliament buildings in Cape Town to the value of R1.98bn.
The materials handling and mining division is the only one that will report a decrease in operating profit for the year. Raubex said Bauba’s full-year results did not meet its earnings expectations, mainly due to the deterioration of the chrome price.
Raubex will release its annual results on May 12.
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