Construction and materials group Raubex has seen its roads and infrastructure divisions achieve a combined order book of R14.6 billion, largely fuelled by contracts from the South African National Roads Agency (Sanral) and an expanding array of public-private partnerships (PPPs). This growth reflects a broader uptick in public infrastructure investment across South Africa, providing a much-needed boost to the sector.
The infrastructure arm stood out as the top performer, with revenue climbing 49 per cent to R2.15 billion and operating profit more than doubling to R180.1 million, primarily thanks to fresh domestic contracts. Raubex’s leadership expressed strong belief in the government’s ongoing infrastructure initiatives, especially advancements in logistics and the overhaul of Transnet, which are expected to benefit their quarrying operations that supply aggregates. There is also fresh impetus in PPPs, with authorities now accelerating schemes like enhancements to the country’s border posts, a shift from previous delays.
At group level, revenue dipped marginally by 1 per cent to R10.84 billion, while operating profit dropped 28.7 per cent to R603 million. Headline earnings per share declined around 14 per cent, cash from operations halved to R762 million, and net asset value increased to R7.33 billion. Capital spending eased to R581 million, yet the overall order book swelled to a record R30.44 billion, an 8 per cent rise from the prior year-end. An interim dividend of 81 cents per share was announced.
The materials handling and mining division experienced a slowdown, with revenue falling 24.4 per cent to R1.79 billion and operating profit halving to R87.7 million, squeezing margins to 4.9 per cent. This was attributed to elevated chrome prices earlier in 2025 and operational hurdles at subsidiary Bauba, where revenue plunged 38.9 per cent to R934.5 million, resulting in a R7.6 million operating loss due to reduced output from lower-grade ore at the Kookfontein and Moeijelijk mines. Mining lower-grade sections at Kookfontein diminished feed quality and yields, impacting concentrate volumes sold. However, a new platinum group metals plant commissioned at Kookfontein in August 2025 is poised to enhance future profitability.
In the construction materials division, revenue edged up to R1.76 billion, but operating profit decreased 14.8 per cent to R142.4 million, owing to inclement weather affecting asphalt and bitumen demand, alongside uncertainties surrounding South Africa’s ferrochrome smelters that hit the industrial minerals segment. Progress continued on refurbishing the Parliament buildings in Cape Town, encompassing demolition and upgrades to fire and suspension systems. Affordable housing initiatives advanced with recent contract wins in Soshanguve and Stellenbosch, while sales at the Newinbosch development surpassed forecasts, aided by declining interest rates that are bolstering buyer sentiment into 2026.
Raubex is positioning itself to seize opportunities in renewable energy, submitting multiple tenders and pursuing prospects to grow its footprint in this burgeoning field. The infrastructure division has already benefited from private-sector renewable projects, including a R2.4 billion cluster of three wind farms, contributing to its strong performance.
Additionally, the roads and earthworks arm has secured major Sanral awards worth R3.22 billion and R2.36 billion, replacing completed works and underscoring renewed tender activity.
Overseas, the Australian operations faced headwinds, with revenue down 17.8 per cent to R1.58 billion and an operating loss of R94.8 million, contrasting with the previous year’s profit of R158.3 million. A flagship project for a prominent mining client in Western Australia encountered severe issues and was ended mutually, with all anticipated losses of around R210 million recognised in the first half of 2026, driving the division’s poor showing. Despite this, the outlook for Western Australia has improved to cautiously positive, with several significant bids lodged and a promising order book for 2027, supported by the recent acquisition of contract crushing firm Axis Mineral Services.
Looking ahead, Raubex anticipates sustained momentum in South Africa, bolstered by its diversified portfolio and strategic focus on high-potential areas like renewables and border infrastructure upgrades, including being named preferred bidder for the Lebombo Border Post project as part of government plans to revamp six key facilities. This positions the group well for recovery and growth in a gradually improving economic landscape.