South African construction conglomerate Raubex has reported robust performance from its roads and earthworks division, which has offset setbacks in its Australian and mining operations, bolstering the group’s resilience in a mixed trading environment. The JSE-listed firm’s trading update for the six months ending August 2025 highlights strong execution on contracts with the South African National Roads Agency (Sanral), which propelled operating profit growth. As reported by Business Day, the division capitalised on a surge of new tenders worth R5.6 billion, including upgrades to the N2 between Mkhondo and Bloemendal and Ermelo and Camden, ensuring sustained activity following the completion of N3 corridor projects.
Despite this domestic strength, Raubex anticipates a 10% to 20% decline in both earnings per share and headline earnings per share compared to the prior year, driven by challenges in its offshore ventures. The Australian division incurred a R210 million loss due to a terminated project, though the group described this as an isolated incident. Other Australian operations, including Westforce Construction and Roadmac Australia, outperformed expectations, while the recent acquisition of Axis Mineral Services is poised to enhance earnings in the second half, according to Engineering News. This acquisition aligns with Raubex’s strategy to diversify revenue streams, mitigating risks from volatile commodity markets.
In the mining segment, stability has returned following a chrome price slump in 2024. The Kookfontein mine ramped up production and commissioned a platinum group metals plant in August, with initial sales projected for the latter half of 2025. The Moeijelijk mine is also on track to reach full capacity by year-end. Contract mining units, such as B&E International and SPH Kundalila, delivered strong results, capitalising on steady demand for outsourced services in South Africa’s R800 billion mining sector, as noted in Mining Weekly. These gains reflect Raubex’s ability to navigate cyclical downturns, with mining contributing 25% to group revenue, per IOL Business Report.
The infrastructure division also shone, driven by private renewable energy projects and progress on high-profile contracts like the Cape Town parliament restoration and the Potsdam Wastewater Treatment Plant. The September acquisition of Hlumisa Engineering has bolstered Raubex’s capabilities in mechanical and electrical engineering, particularly in water and wastewater treatment, complementing the Potsdam project. This move enhances the group’s environmental services portfolio, aligning with South Africa’s R50 billion annual investment in water infrastructure to address urbanisation and climate resilience, as outlined in Global Water Intelligence.
On the property front, Raubex’s affordable housing initiatives are gaining momentum, spurred by recent interest rate cuts that have lowered borrowing costs by 0.75% since July 2025, according to South African Reserve Bank data. The Newinbosch development has exceeded sales forecasts, reflecting renewed buyer confidence in a housing market projected to grow 8% annually through 2027, per Property24. This positive outlook is underpinned by government efforts to address a 2.3 million-unit housing backlog, with public-private partnerships (PPPs) incentivising developers through tax breaks and land grants.
Raubex’s record order book, now at an all-time high of R18.4 billion, provides a solid foundation for future growth, bolstered by a rebound in South Africa’s construction sector, which grew 4.2% in 2024 after a decade of stagnation, per Stats SA. The government’s push for PPPs, including a R1 trillion infrastructure pipeline through 2030, offers significant opportunities for Raubex to expand its footprint in roads, energy, and water projects. However, challenges persist, including rising input costs—steel prices have climbed 15% globally in 2025—and delays in project approvals, which have slowed 20% of Sanral’s tenders, as reported by Infrastructure SA.
The group’s diversification strategy, spanning construction, mining, infrastructure, and property, continues to drive performance, cushioning it against regional volatilities. With 70% of its order book secured for 2026, Raubex remains optimistic about capitalising on South Africa’s infrastructure boom, particularly as renewable energy projects, which attracted R30 billion in private investment last year, gain traction. The company’s strategic acquisitions and focus on high-margin contracts position it to navigate economic headwinds while delivering sustainable value to stakeholders.