Raubex’s roads and infrastructure divisions now boast an order book of R14.6bn, boosted by the SA National Roads Agency (Sanral) and a growing pipeline of public-private partnerships (PPPs).
The increased order book comes amid a gradual recovery in public infrastructure spending, the group said.
The infrastructure division emerged as the group’s strongest performer, with revenue up 49% to R2.15bn and operating profit more than doubling to R180.1m, driven by new SA contracts.
Raubex CEO Felicia Msiza told Business Day: “We are confident in the government’s infrastructure pipeline, particularly the progress around logistics and Transnet’s transformation agenda. Our quarry business, which supplies stone, stands to benefit. We’re also seeing renewed momentum in PPPs — unlike before, the government is now fast-tracking projects such as the upgrades at SA’s border posts.”
Overall, the group reported a slight decline in revenue, down 1% to R10.84bn, while operating profit fell 28.7% to R603m. Headline earnings per share were down about 14%. Cash generated from operations halved to R762m, though net asset value rose to R7.33bn. Capital expenditure eased to R581m, and the group’s total order book expanded to R30.44bn.
Raubex declared an interim dividend of 81 cents per share.
The materials and mining division saw earnings slow, with revenue down 24.4% to R1.79bn and operating profit halving to R87.7m, pushing the margin down to 4.9%. The fall was driven by higher chrome prices in the first half of 2025 and challenges at Bauba’s mining operations. Bauba’s revenue fell 38.9% to R934.5m, while it swung into an operating loss of R7.6m, driven by lower volumes at the Kookfontein and Moeijelijk mines in the first half of the year.
“During the first half of the financial year, mining a lower-grade section at Kookfontein reduced feed grade and yield, negatively affecting the volume of concentrate produced and sold,” the group said.
Meanwhile, the construction division saw revenue rise slightly to R1.76bn, while operating profit fell 14.8% to R142.4m. The decline was largely due to adverse weather early in the period, which weighed on asphalt and bitumen sales, and continued uncertainty about the future of SA’s ferrochrome smelters, which affected the industrial minerals business.
The group reported progress in its upgrades of parliament in Cape Town, which include demolition and fire and suspension infrastructure.
The division’s affordable housing projects are making progress, with new awards in Soshanguve and Stellenbosch, while sales at Newinbosch are exceeding expectations — especially as interest rates fall, boosting market confidence heading into 2026.
The group intends to capitalise on renewable energy with numerous bids and prospects in the sector, where Raubex said it wanted to increase market share.
In its Australia construction division revenue fell 17.8% to R1.58bn, while the division reported an operating loss of R94.8m, down from a profit of R158.3m a year earlier.
“Operations in Western Australia had a mixed year. Our largest project for a major mining company faced significant difficulties and was terminated for convenience, accounting for all expected losses in the first half of 2026 — this project drove the division’s underperformance,” the group said.
Looking forward, Raubex said the outlook for Western Australia had shifted to cautiously optimistic for the remainder of the year. While new project activity was expected to remain subdued, several meaningful tenders had been submitted, and the order book for the 2027 financial year showed promising potential.
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