PR Newswire
LONDON, United Kingdom, February 16
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1924/002590/06)
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
TRADING STATEMENT AND OPERATIONAL UPDATE FOR THE YEAR ENDED 31DECEMBER 2025
AECI is in the process of finalising its financial results for the year ended 31
December 2025 (the year), which results are expected to be released on the Stock
Exchange News Service of the JSE Limited (SENS) on or about 25February2026.
Earnings guidance
In terms of paragraph 6.26 of the JSE Listings Requirements, companies are
required to publish a trading statement as soon as they are reasonably certain
that the results for the period to be reported upon next will differ by at least
20% from the published results for the previous corresponding period.
Shareholders and noteholders are advised that a reasonable degree of certainty
exists that AECI’s results for the year will increase by more than 20% from the
results for the year ended 31December 2024 (the prior year or 2024).
Shareholders and noteholders are advised that AECI expects Basic Earnings Per
Share (EPS) and Headline Earnings Per Share (HEPS) for the year to be within the
following ranges compared to the published EPS and HEPS for the year ended 31
December 2024:
+————————————-+—————-+—–+—————-+
| |31 December 2024|31 December 2025 |
+————————————-+—————-+—–+—————-+
| |Reported |Expected results range|
+————————————-+—————-+—–+—————-+
|EPS (cents)* |(268) |319 |353 |
+————————————-+—————-+—–+—————-+
|Variance (%) | |219% |232% |
+————————————-+—————-+—–+—————-+
| | | | |
+————————————-+—————-+—–+—————-+
|EPS – continuing operations (cents)**|263 |332 |368 |
+————————————-+—————-+—–+—————-+
|Variance (%) | |26% |40% |
+————————————-+—————-+—–+—————-+
| | | | |
+————————————-+—————-+—–+—————-+
|HEPS (cents)* |716 |1,022|1,131 |
+————————————-+—————-+—–+—————-+
|Variance (%) | |43% |58% |
+————————————-+—————-+—–+—————-+
*Continuing and discontinued operations
**Discontinued operations are expected to report a basic loss per share of
between 13 cents and 15 cents, compared to a basic loss per share of 531 cents
in the prior year.
EPS – continuing operations
The Group anticipates a more than ~10% year-on-year increase in earnings before
interest, taxation, depreciation, and amortisation (EBITDA), despite a year-on
-year decline in revenue. The increase is mainly driven by the expected improved
performance in AECI Mining.
Earnings will be impacted by the recognition of impairments, totaling ~R820
million, relating to the disposals within the Managed Businesses Segment and the
annual impairment assessment at Schirm Germany. Net finance costs are expected
to decrease by ~34%, mainly due to lower debt levels.
The Group’s effective tax rate is anticipated to be in line with the prior year
level primarily influenced by impairments, assessed losses at Schirm Germany,
and foreign withholding taxes applied to dividends.
HEPS – continuing and discontinued operations
The improvement in HEPS reflects higher underlying profitability and excludes
the impact of impairments recognised in determining EPS from continuing
operations
Operational update
AECI Mining is anticipated to achieve stronger operational performance compared
to 2024, with EBITDA expected to rise by more than ~15%, despite an expected ~8%
decline in revenue. The decrease in revenue is primarily influenced by lower
sales volumes in both Mining Explosives and Mining Chemicals. The EBITDA
increase is mainly driven by disciplined pricing and improved margin management,
which contributed positively to the EBITDA margin. The expected improved
performance is partially offset by operational challenges at the Modderfontein
complex, including power interruptions and disruptions in the supply of ammonia
and lead azide. Good progress was made in the second half of the year to address
these operational matters.
AECI Chemicals’ revenue for the year is expected to increase by ~5%, with EBITDA
expected to decline by ~5% primarily due to bad debts. Pleasingly, R49 million
of the reported R113 million bad debts was recovered during the second half of
the year. The Water business is expected to achieve improved results, supported
by a strong performance in Public Water. The Plant Health business is expected
to report improved results, following improved sales volumes, tight cost control
and stable margins. The Specialty and Industrial Chemicals businesses are
anticipated to report lower earnings compared to the prior year.
The Group continues to position itself for long-term resilience through the
disposal of businesses within AECI Managed Businesses. Disposal proceeds of
~R2.3 billion were utilised against the Group’s debt. The majority of the
disposal processes are now completed and assisted in improving the Group’s
quality of earnings, portfolio and strength of the balance sheet.
Net debt, including lease liabilities, is anticipated to decrease to ~R460
million from R3 738 million in the prior year. Gearing is expected to be ~5%,
improving from 31% in the prior year.
The financial information contained in this announcement and on which this
trading statement is based, has not been reviewed or reported on by the
Company’s external auditor.
Woodmead, Sandton
16 February 2026
Equity Sponsor: One Capital
Debt Sponsor: Questco Proprietary Limited
About AECI
AECI is a diversified mining and chemicals solutions and services company
employing over 5 500 people at more than 100 sites. The Group has a presence in
over 20 countries on six continents. Founded in 1896 to service South Africa’s
burgeoning gold and diamond mining industries, the Company was formally
established in 1924. The Company was listed on the securities exchange operated
by the JSE Limited in 1966. A mainstay of the economy in South Africa, over the
years AECI has expanded its presence and evolved its product and service
offering to a broad base of customers. The Company’s core products and services
include mine-to-mineral solutions; water treatment solutions; chemical raw
materials and related services; crop protection products and plant nutrients; as
well as property leasing and the provision of utilities. The Group’s operating
businesses are structured into four operating business segments – AECI Mining,
AECI Chemicals, AECI Property and Corporate Services, and AECIManaged
Businesses.
Contact for enquiries:
Itumeleng Lepere
Group Head – Investor Relations
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