Transnet has reported its first annual profit in four years, posting R4.6 billion for the 2025/26 financial year, a sharp turnaround from the R1.9 billion loss recorded the previous year. The recovery was driven by improved rail and pipeline volumes, tariff adjustments, and a once-off asset sale at Durban’s port.
Transnet’s revenue rose 7.1% to R88.6 billion, supported by higher throughput across freight rail and port terminals. Rail volumes increased by 4.9% to 167.9 million tonnes, while pipeline volumes grew 6.9% to 14.3 billion litres. The company also benefited from tariff adjustments that bolstered earnings.
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A significant contributor to the profit was the disposal of a 49.999% stake in the Durban Gateway Terminal to International Container Terminal Services Inc. (ICTSI) for R10.5 billion. Without this transaction, headline earnings would have reflected a loss of R4.8 billion, underscoring the importance of asset sales in the turnaround.
Table: Transnet Financial Performance (2021–2026)
| Year | Revenue (R bn) | Profit/Loss (R bn) | Key Notes |
|---|---|---|---|
| 2021/22 | 85.2 | -7.3 | Heavy losses, operational decline |
| 2022/23 | 86.0 | 0.5 | Brief return to profit |
| 2023/24 | 87.0 | -1.9 | Loss narrowed under recovery plan |
| 2024/25 | 82.5 | -1.9 | Continued strain, theft & vandalism issues |
| 2025/26 | 88.6 | +4.6 | First profit in 4 years, asset sale boost |
Transnet’s turnaround strategy, launched in October 2023 under CEO Michelle Phillips, focused on operational integration across rail, ports, and pipelines. Improved coordination and targeted interventions in maintenance and asset reliability have begun to stabilise performance.
Government support has also been critical. The National Treasury extended guarantees totalling R98 billion between 2023 and 2025, providing liquidity and enabling capital expenditure. Borrowings rose to R150.7 billion in 2025/26, highlighting ongoing debt pressures despite the profit.
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The Auditor-General issued an unmodified audit opinion for the year ended March 2026, reflecting improved governance. However, risks remain, including theft, vandalism, and under-investment in infrastructure. Transnet has announced plans to sell additional commercial properties to strengthen its balance sheet.
This profit marks a milestone for South Africa’s largest transport utility, but sustainability will depend on continued operational improvements, debt management, and successful execution of its recovery plan.