Reunert has blamed a challenging trading environment in which key projects were delayed for a drop in interim revenue and earnings.
The company, which has its primary listing on the JSE where it is valued at just more than R11.14bn, is also traded on the A2X.
Its operations include the design and manufacturing of electrical conductors, cables and accessories, as well as ICT-related services for businesses. It also has niche businesses that cover communications and radar systems.
“Reunert expects the transmission grid and related infrastructure projects to only commence in the 2026 financial year. Consequently, the broad SA macroeconomic environment experienced in the first half of 2025 is expected to continue for the remainder of the year,” the electronics group said on Wednesday as it reported earnings for the six months to
end-March.
The company is one of a handful of companies that weathered the fallout from Eskom’s load-shedding, thanks to its investments in renewable energy and supply contracts with the power sector. Its solar energy business had a strong performance as build rates, margins and solar energy assets under ownership all improved in the recent period.
However, improving load-shedding has led to a reversal of this good fortune.
“The battery storage market continued to be extremely weak. The residential and small commercial battery storage market remained constrained in the absence of load-shedding, while the large battery storage market experienced slow order receipts and increased competition,” said the group.
The board thus decided to dispose of battery specialist Blue Nova Energy “as it no longer supports the group’s strategic and financial objectives”.
Revenue for the period decreased 5% year on year to R6.21bn and operating profit fell 16% to R585m, driven by a decrease in the applied electronics segment’s revenue caused by the deferment of a fuse contract into the second half of the year.
The group — established more than 130 years ago — has three segments: electrical engineering, which includes power and telecom cables; ICT; and applied electronics, which includes renewable energy solutions and radars.
Profit fell 19% to R382m and headline earnings per share retreated 20% to 238c. The group declared an interim dividend of 90c per share, up 8.4%.
In 2023, the group finalised a deal to take a 74.2% stake in IQbusiness, one of SA’s largest management and technology consulting firms. It employs more than 1,000 people and generates more than R1bn in revenue annually, offering insights, consulting and contracting across consumer convergence in the financial services, retail and telecommunications sectors and the manufacturing industry.
Reunert recently merged IQbusiness and its +OneX business unit to create a single brand.
Charl de Villiers, head of equities at Ashburton Investments, said Reunert’s acquisition of IQbusiness signalled a bold move into digital consulting and data-led solutions.
Analysts are watching for progress on integration, client retention and margin outlook. An opportunity to watch is Reunert’s strategic diversification away from hardware-reliant business units — where a combination of Nashua’s SME network and IQ’s digital capabilities could drive a new growth engine for the company.
Reunert shares were up 1.48% by 2pm on Wednesday at R61.13. The share is down 18.49% so far in 2025.
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