Raubex Group’s share price increased over 8% on the JSE Monday morning after it predicted a 15% to 25% increase in headline earnings per share (HEPS) and a stronger pipeline of new contracts, including the repair of the Parliament building.
The group said included in its pipeline of new work was the recent award for the repair and upgrade of the Parliament buildings in Cape Town, valued at R1.98 billion.
“This project will be a key project for our Commercial Building business in the new financial year,” Raubex directors said in a trading statement Monday.
Earnings a share were expected to be between 590.1 cents and 637.3 cents, while HEPS was expected to be between 547.7 cents and 595.4 cents (2024: 476.3 cents) for the year to February 28, the infrastructure and construction group directors said in a trading statement.
Three out of the four divisions improved on their first half earnings in the second half of 2025, while the diversification strategy was pivotal role in driving performance,” directors said in the statement.
Normalised EPS was expected to be between 15% and 25% higher than the previous corresponding period. This would translate to normalised EPS of between 542.9 cents and 590.1 cents for the year.
The increase in the Roads and Earthworks division operating profit was due to the execution of the project pipeline.
“The major SA National Roads Agency (Sanral) projects, particularly the upgrade of the KwaZulu-Natal corridor, are operating at full capacity and performing excellently,” the group said.
The execution of concession contracts and construction of the Senqu River Bridge project in Lesotho were also progressing well, and all the contracts were on schedule, the directors said.
Since November 2024, the division secured R3.04bn of additional work and it was still awaiting the award of some major Sanral projects.
The concessionaires, N3TC, Bakwena, and TRAC, were making good progress with the awarding of tenders - the group secured a portion of these awards in the latter part of the year.
In the Construction Materials Division, an improved performance was largely due to increased volumes. The restructured asphalt business performance exceeded expectations, and operations were running efficiently. Asphalt volumes exceeded a million tons for the first time since 2018.
After a slow start, the commercial quarry operations had started performing better, driven by the more positive market sentiment following the 2024 National Elections.
“Encouraging developments at Transnet have also positively affected quarry volumes, specifically the ballast stone sold at the Kimberley and Petra quarries. The Butterworth quarry, in the Eastern Cape, and the quarry operations in Botswana continued to perform exceptionally well.”
In the Infrastructure division, which concentrates on renewable energy projects, 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 both contributed positively to the division's results.
The affordable housing projects continue to develop well as the South African 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 was ongoing and the project is on schedule.
Operations in Western Australia performed well and would contribute about 19% of the group's operating profit. Since November 2024, the division has secured contracts of R2.88bn, R2.07bn in South Africa and R812.2m in Australia.
The Materials Handling and Mining Division would report a decrease in operating profit, with the second half impacted by the deterioration of the chrome price.
Moeijelijk Mine switched to a new underground mining contractor at the start of the financial year. Although this change was expensive, it was necessary to enhance safety and to employ a contractor with greater expertise in board and pillar mining.
BUSINESS REPORT