Reunert International Holdings delivered a mixed interim report for the six months to 31 March 2026, with operating profit sliding 23 % despite a modest 1 % rise in group revenue. The downturn was driven mainly by a sharp contraction in its power‑cable businesses, while the ICT and Applied Electronics divisions posted solid gains and the Defence cluster saw profit jump 41 %.
The JSE‑listed group logged R6.31 billion in revenue, edging up from R6.22 billion a year earlier, yet operating profit fell to R453 million from R585 million. Headline earnings per share dipped 22 % to R1.85 and the interim dividend was held steady at 90 cents per share. On the balance sheet, net cash improved dramatically, climbing to R383 million from just R81 million twelve months ago.
These figures are the first under newly appointed chief executive Anthonie de Beer, who assumed the role on 1 March 2026. His predecessor, outgoing executive director Alan Dickson, will depart the board on 31 May after a 12‑year tenure.
The ICT segment, which now houses the Nashua, iqbusiness and freshly launched Reunert Connect brands, emerged as the standout performer. Revenue slipped 4 % to R1.86 billion, but operating profit nudged up 1 % to R321 million and the segment’s margin widened from 16.4 % to 17.2 %. Reunert credited the boost to the integration of the former ECN and Skywire businesses – now merged under the Reunert Connect banner – and to a steady appetite for enterprise connectivity and last‑mile broadband services.
Iqbusiness, part of the Solutions and Systems Integration cluster, reported a “good financial performance” after last year’s restructuring. The unit, now led by a fresh management team, sharpened its focus on cloud, data and AI‑enabled services, delivering improved efficiencies across the board.
The Applied Electronics division posted the strongest profit growth, with revenue climbing 9 % to R1.03 billion and operating profit surging 41 % to R110 million. Within this segment, the Defence cluster recorded double‑digit expansion, driven by higher capacity utilisation, production efficiencies and a more favourable product mix.
| Segment | Revenue (R bn) | YoY % Change | Operating Profit (R m) | YoY % Change | Operating Margin |
|---|---|---|---|---|---|
| ICT | 1.86 | –4 % | 321 | +1 % | 17.2 % |
| Applied Electronics | 1.03 | +9 % | 110 | +41 % | 10.7 % |
| Electrical Engineering | 3.50 | +2 % | 138 | –40 % | 3.9 % |
The table shows that while ICT and Applied Electronics lifted the group’s top line, the Electrical Engineering segment – which houses South African and Zambian power‑cable operations – dragged overall profitability down, with margins halving from 6.6 % to 3.9 %.
The power‑cable slump reflects broader macro‑economic pressures. Reunert cited a 21 % appreciation of the Zambian kwacha against the dollar, which squeezed margins and caused foreign‑exchange losses, and a 31 % jump in copper prices that delayed customer orders. In South Africa, gross domestic fixed investment fell to its lowest level in 25 years – just 14 % of GDP – signalling that the government’s infrastructure pledges have not yet translated into on‑the‑ground projects.
In a post‑period development, Reunert International announced two strategic moves aimed at diversifying its portfolio. First, the group entered an agreement to acquire 51 % of a wholly‑owned subsidiary of CSG (the Czechoslovak Group) for a nominal amount, paving the way for a joint venture that will manufacture electronic artillery fuzes for large‑calibre ammunition in Slovakia. The partnership is structured as a technology‑exchange rather than a cash purchase, positioning Reunert to tap into Europe’s accelerating defence re‑armament programmes.
Second, the iqbusiness arm disclosed the acquisition of Silversoft, a provider of enterprise software and digital solutions operating in South Africa, the UK and the Middle East. Iqbusiness will take 100 % of Silversoft’s South African business and related assets, as well as the UK entity, expanding Reunert’s footprint into European and Middle Eastern markets. Both deals remain subject to suspensive conditions and fell below the JSE’s reporting threshold, so monetary values were not disclosed.
Reunert interim results underscore a clear strategic pivot: the company is bolstering high‑growth, technology‑focused units while seeking footholds in overseas defence and software markets to offset domestic infrastructure weakness.
The group’s latest “strategic refresh” emphasises sharper execution, disciplined cash management and a renewed focus on the segments with the strongest value‑creation potential. With a healthier cash position and a series of cross‑border acquisitions, Reunert hopes to transform the current profit dip into a springboard for sustained growth, even as South Africa’s infrastructure spend remains constrained.